Should you get into the big box store retail game? Michael Stone from Markup & Profit says you may want to think twice before you do.
In response to a reader’s question, Stone says that you should probably opt out of working with a big box store. As Stone writes:
"If the big box stores are willing to pay what you need to cover all your job costs and overhead and make a reasonable profit, it's a great deal. That's rarely the case. Instead they offer a fixed figure for each type of job you do.
They'll pay $xx to install a hot water tank. They'll offer $yy to install a replacement furnace and $zz per foot to install new gutters and downspouts. I was talking to a guy from one of those stores about hot water tank replacements and he told me that, ’the amount per install may look low, but don't forget we'll give you at least five of these a day…' If you want the security of steady work coming your way, sign on as an employee with a big box store or somewhere else. You'll probably make more money getting an hourly wage as an employee than you'll make taking the risk of doing installs on the big box store's pricing schedule."