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Installation Productivity: The Fine Line Between Profit and Loss

By Randy Prewitt

In our industry, some dealers prefer to subcontract the installation labor portion of the their business. Obviously, a fixed cost has merit, but there are also tradeoffs for those who opt for this type of operation. For instance, will the dealer lose control of installation quality? Is the subcontractor working for multiple dealers and will he only work for the highest bidder? Can schedules be made and kept for your customers?

A strong working relationship between the dealer and a reliable subcontractor can overcome the vast majority of these obstacles. However, an independent subcontractor won't eliminate problems associated with efficient installation production.

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