Business Insight 104 – Pay Schemes For Tradesmen (blog & vlog)

1987

The year, as always, kicks off with a January sale – the competition was hotting up. M&M Windows, the latest upstart, were definitely making inroads and were on average 20% cheaper than us. However, our products were superior and our fitters were better paid.

INSIGHT 104:- In the double glazing industry, it was the custom and practice to pay fitters a percentage of the net of VAT contract value. If the contract had been given away (i.e. a very low price), their income was dramatically reduced. We had always paid the same piece rate (fitter pay rate) for the same task, irrespective of whether or not the contract price was reduced. I think this was as a direct result of my training as a ‘Work Study Engineer’ with Jaeger; I just didn’t believe the same quality of work would result if the fitter’s money was reduced, even marginally. 

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