The thread that cutawooda started about referral fees got me to thinking –
I’ve been asked several times over the years to give info to other people when I know someone is going to build a house.
For instance – A cabinet guy asked me once to let him know of any names of people in the area that I bid trusses to, so he could contact them about building cabinets for them. And recently I was approached at a trade show by a stranger who offered me $50 for each person that referred to him that bought something from him.
I’ve always refused to do this, as I think it’s unethical. And I don’t want to get a reputation for telling everything I know. These guys have always said they would never tell how they got the info. But I figure sooner or later the word will get around.
Just curious how common this type of stuff is, and how y’all feel about it.
Replies
I think it depends on which direction the referral is going.
I think it's perfectly OK, and even a good idea, for a client to ask contractors in one specialty to recommend people in other specialties. For instance, a plumber who does a lot of repair work is very likely to know a few good plasterers, and the plasterers shouldn't have any problem with having people come looking to employ them.
The other way around is a little more dicey. This cabinet guy is asking you to help him get work from your customers. He's asking to borrow your good reputation. Question #1 should be, is he a good cabinet guy? Does he do cabinets as well as you do trusses? Does he get the job done on time? Are his prices fair? If a client asked if you knew a cabinet maker, would he be #1 on your list? Would you hire him to do cabinets for your home? If you think the guy is really exellent, and that you'd be doing the client a favor by pointing him to a great cabinet sub, then go ahead. Otherwise, tell the guy that it would sound really wierd to the customer for the truss man to start hawking cabinets.
I know I've said this before, but from the homeowner's point of view, the way you can tell good contractors from the not so good is that you have to look for the good ones, and the bad ones come looking for you.
-- J.S.