• Trouble logging in? Send us a message with your username and/or email address for help.
New posts

SHELLY

SoWal Insider
Jun 13, 2005
5,770
803
No way. I get commission, although it seems like I need a salary too! I don't know, I feel that many subs have gotten the short end of the stick here, and I had hoped for some kind of relief, ie benefits for them. There are many self employed subs here, that don't have benefits. I've known some that are with Service Magic, but they send about 5 subs to bid for one job, each has paid a lead fee, and only one gets the job. They also, as I understand, don't offer any benefits.
As I said, I think it could be a good thing for both homeowner and contractor.

For what it's worth, I think your heart is in the right place. From what I can see, GCS Inc. is having contractors buy in and you get a commission for each contractor you sign up. The contractors pay GCS a buy-in fee of a couple hundred dollars and then $79 per month.

If they pay you $200 for each person you sign up, (and apparently a cut of every lead you generate for work) the company ends up with about $200 of the buy-in and $79 monthly from the contractor.

For the life of me, I can't see how that amount will pencil out in benefits to the contractors. It is probably enough to provide the contractor with "access" to health insurance, but they're still going to have to come up with a big chunk of change for monthly payments and high deductibles.

They appear to be trying to branch out nationwide and have advertised on Craigs List in several cities. I pulled the Craigs List ad from another state. Apparently, "Miles"' sounded none too pleased by the contents of that Craigs List ad (too much information, I suspect) and that he'll let "Tony" know and have it pulled. :roll:

I'm not saying this to burst your bubble. I'm well aware of the stress and strain of the "regular working class" in our area and the problems they are facing now and will be for some time. I just don't want to see anyone get into a situation where they will waste what precious money they'll need to see them through.

If you chose to go forward, evaluate every scrap of their business plan with a HEAVY DOSE of skepticism, ask questions, question programs, ask about finances...how much it will cost you and cost your clients to sign up and secure the promised "benefits." (Lots of mention of "discounts available.." and "access to..." should be a red flag.)

Feel free to send this to "Miles" and see what he says...tell him Shelly told you to do it and if he's got a problem, send "Tony" over :cool:


.
 
Last edited:

Tony

Beach Crab
Hi my name is Tony Dimovski and I’m the CEO and founder of Gold Crown Service Inc. I was clued in to this thread from our local relationship manager.
I thought whom better to explain who we are and what we do then me. Before I formed Gold Crown Service with Chris Hines (Our President) I was in the HVAC contracting industry in the Metro Detroit area for nearly 20 years and Chris was formerly the director of franchise operations for an international restaurant chain for nearly 30 years. The problem I saw in our industry was that many independent contractors were making less and felt they had to charge less than a national franchise. Consumers today have changed the way they shop, most people shop exclusively at huge national chain stores such as Wal-Mart and Home depot. I noticed our news media always targets the worst independent contractor in the area and runs a story on how “The independent contractor that ripped off a customer”. This type of news gives the rest of us good guys a bad name. Because of how independent contractors are portrayed we as a group are doing less every year. Who ever thought the supply house that we bought your supplies and equipment from would become a competitor. Utilities and National Big Box stores like Sears and Home depot are getting into our business and I got sick and tired of it.
Not to mention all the unlicensed and uninsured side jobbers (hacks) that are working for peanuts and killing profitability. I challenge any service contractor to compare what they charge today with what was charged 20 years ago. I bet it’s the same if not less, but inflation has no problem keeping up.
Gold Crown Service Inc. is a way for quality independent contractors to separate them selves from the pack. All our contractors are felony free and blood drug tested. We are not a franchise; GCS is more like a union of independent Contractors.
All our member maintain there names and independence, GCS has two types of start up options one is $499 that includes complete background and credential checks, 10 panel blood drug test, Photo Id badge with GCS logo and Date of background and drug test. We also provide decals that are by 3M (controltac) our decal is 5 1/2” tall and surrounds the top of a service vehicle. The sides of the decal say Gold Crown Service and the back has our web site www.getgcs.com. Our decal won’t take your identity away, it makes yours stronger and helps build a brand of quality by having it. Along with the GCS logos are the logos from the drug testing company CVTUSA these logos look like a sheriffs badge and are placed above the front wheel wells and back door, it says Checked Verified Tested and is a great way to show your customers you care about there safety.
To address the other post about our compensation plan, we have local commission sales people that get paid when they help a contractor become a member. I along with many companies don’t want there comp plan made public. One or our District managers was a little aggressive a posted what we pay our outside sales people. I can understand why some contractors think it’s too much but if you think about it, our sales people have to show what we do to contractors and solicit commercial and residential customers for our existing members. That’s a lot of legwork, we pay them a signing bonus for every new contractor that comes aboard and a percentage of the $79 a month from all the local members dues. Work that comes into GCS from the efforts of the outside sales staff is given (free) to our members. Even leads that come from our website are free to members, a percentage of the monthly dues that our members pay goes towards advertising and lead generation. We even pay our members that bring in leads for other trades. The only time we charge our members for leads is when a lead is generated from expensive advertising such as Yellow pages, TV and Radio and newsprint. And when we sell leads we only sell exclusive leads. That means we don’t sell the same lead to a half dozen contractors each time, one to one ratio this gives our guys better odds on the sale.
We also have a $149 start-up and it’s the same benefits and features but does not include the decals. We prefer everyone get the decals, but some guys say I’ll get the decals later. (If you get the decal upfront we usually throw in a bonus).
I called a couple of members that can give you their perspective on our company and I hope they chime in on the discussion. But I can tell you some of our members have been able to save as much as $800 on insurance savings. It’s amazing what we can do united together on our savings and advertising, and most of our contractors would tell you they would have no problem paying way more than $79 in dues compared to the additional income that’s made from the leads we pass to them (mostly free leads).
In a nutshell were a national company made up of small to medium sized quality contractors. Designed by independent contractors for independent contractor. It’s not an open door admission; we are selective on how many members we bring in to ensure our guys stay happy. Although we are new to this market we hope to improve business and reclaim lost ground from the national franchises, local utilities and big box stores. If you have ANY questions or want to talk to me directly feel free to call me. I’ll be happy to help you get acquainted with our company and what we do for the independent contractor. Toll Free: 888-438-4270 extension 530. Afternoons are best Mon-Fri.
 

SHELLY

SoWal Insider
Jun 13, 2005
5,770
803
Tony,

Thanks for visiting and providing some pretty detailed information about your corporation and business plan. I won't deny that there is a demand out there for quality, professional and substance-free contractors.

I am curious about a couple of things:

(1) The $350 difference in the buy-in price that includes all the bells and whistles (drug tests, criminal background and credential checks, badge, etc.) EXCEPT the decals. Who is responsible for ensuring the contractors take the required drug tests? I can understand the guys who paid for the "decal" package will show up to collect their decal, but the others?

(2) You state "The only time we charge our members for leads is when a lead is generated from expensive advertising such as Yellow pages, TV and Radio and newsprint." Who is responsible for paying to place those (local) ads? (I'm assuming that would be the district or local representative--and out of their own pocket.)

(3) Although Gold Crown Services is a business in the Detroit metro area, I see that Gold Services incorporated in Michigan in June 2007. And just doing a quick search, I saw that the web is peppered with ads from locations such as NJ, DE, CA, WI (to name a few) looking for contractors to sign with Gold Crown (including a NJ job board with another ad stating the $200 compensation). If I do say so myself, I'm surprised at the aggressive nationwide growth being attempted by such a new company.

But this is America, and I applaud your moxie. You're bold enough to come on here and state your name, explain your business plan and field questions. Your quest to provide America with reliable contractors and the contractors with clients is a noble cause.

Admittedly, I am still skeptical about your corporation's shotgun approach to expanding the business nationwide this early in the game, but that's just my observations as a result of spending (too many) years in the business world.

With all the crap that's going on out there in the world of contracting, finance, business and the Internet, no one can be too careful these days....right?


Shel.
 
Last edited:

florida girl

Beach Fanatic
Feb 3, 2006
1,453
67
Santa Rosa Beach
Although Michigan is understandibly different than the Panhandle of Florida, still the needs of the sub contractor are the same. I applaud the efforts to provide some benefits to them. Who knows? Maybe you guys would be interested in stock?!
 

SHELLY

SoWal Insider
Jun 13, 2005
5,770
803
Last edited:

florida girl

Beach Fanatic
Feb 3, 2006
1,453
67
Santa Rosa Beach
I've been snooping around some Michigan sites, and Service Magic doesn't have a good rep there;there are several lead generator companies. And the difference that I can see with these companies is there aren't the benefits to the contractors. I did get some info from Gold Crown, they have lowered the leads cost to 0, to generate new business in a new market.

As for insurance, for the health plans it is Blue Cross and for the liability it is Farmers. We did talk about giving a referral fee to a contractor that refers another contractor to sign up. Fee is still up in the air, but we started at $50 to the contractor to send someone they know after they sign up.

Even without the lead benefits, it still provides access to discounts on health, liability, auto insurance, and workers comp. I still think it's a good idea.
 

florida girl

Beach Fanatic
Feb 3, 2006
1,453
67
Santa Rosa Beach
They have decided to drop all fees for leads, and offer them free! Also, a $50 finder fee for anyone who recruits a new contractor for a sucessful sign up! I also discovered that the owner, Tony, sold his HVAC company to a woman that had been in his employ for numerous years. The idea still is for subs to band together and have bulk buying power for health, liability, auto insurance, workers comp, and other priviledges. I checked the BBB in Michigan, and it is a viable company with no bad reports. He is supposed to be sending references, testimonies from his current contractors, with phone numbers. I don't think we've really had this sort of thing here, outside of Service Magic, who apparently have developed a rather bad rep, with no particular benefits to the contractors. They have also planned natiional advertising to begin in March.
 

florida girl

Beach Fanatic
Feb 3, 2006
1,453
67
Santa Rosa Beach
Gold Crown is similar to a leasing company, as it provides access to various insurances, etc., but it isn't. It is a contractor network designed to increase the amount of leads a small to midsize contractor or sub obtains. By joining forces, it enables these subs, or contractors, to have bulk buying power with the insurances, and supply warehouses, etc. It also provides an assurance to the homeowner that the person that shows up at their house to do a repair or whatever will follow a certain standard, be drug tested, background checked, licensed and certified according to the law, etc. It attempts to provide the benefits of a large company to the smaller company that may not be able to receive them, regardless of how many, or few employees they may have.
 
New posts


Sign Up for SoWal Newsletter