controls company doing mechanical work

[cal-cu]

Controls only companies make me what to puke.

[esusa56]

I actually run a service division that does both controls and mechanical. While we are a controls business at our core, we needed to diverisfy some of our opportunities to be able to provide additional value add to customers who don't see the line between controls/mechanical, but rather just HVAC and to fend off being locked out of an opportunity where a mechanical would say they could do controls. I suggestion is to focus on what you want to go after and work on the bundle. If you need mechanical help, you can always find a friendly mechanical to assist with some of the heavy lift that your staff may not techanically have yet or are willing to invest in yet. Its all about providing value to our customers and being able to make money!

[miller_elex]

Controls sub from mechanical contractors, and not the other way around, for good reason.

Electrical contractors sub from controls contractors and not the other way around, for good reason.

Now if a mechanical contractor wants to have an in-house controls division, and controls wants to hire electricians who wire controls, be my guest, that situation is going to work out. Butt fer Gawdssakes, make sure it is a mechanical service guy doing the computer and an electrician doing the install.

[Chris_Worthington]

Controls sub from mechanical contractors, and not the other way around, for good reason.

Electrical contractors sub from controls contractors and not the other way around, for good reason.

Now if a mechanical contractor wants to have an in-house controls division, and controls wants to hire electricians who wire controls, be my guest, that situation is going to work out. Butt fer Gawdssakes, make sure it is a mechanical service guy doing the computer and an electrician doing the install.

[refrige-nate]

My company has a control only installation crew and a Mechanical / controls service crew. It works out fine.

[flange]

was the lead guy for a controls company local branch office that wanted to do mechanical. sold a lot of work and did quite well by mechanical standards. when they forced my hand and wanted 50%gm, work slowed. the good news is that i no longer work for them, but run my own company where we do both.I try to sell the whole project, and decide on house where and how we execute. sometimes we do the controls, other we sub em out, depends. in the end though, they work to my standards or they get fixed.

[miller_elex]

was the lead guy for a controls company local branch office....

elaborate some more.... no need for company names... 50% of gross margin? Did I read that right? Isn't 8% more realistic?

[azzad]

elaborate some more.... no need for company names... 50% of gross margin? Did I read that right? Isn't 8% more realistic?

The company I was working for wanted 42% GM!

Personally I think 8% is great.

Dazza

[klrogers]

Its seems to me that a good definition of Gross Margin is needed before we start talking about percentages.

[kostasgreece]

GM is globaly defined in finance as gross margin.

That profit window is not what someone actually put in his pocket, wheather you work for your own buisiness or a corporate, actually is what money goes into your organization account.

You have to deduct various project cost, expences (gas,tickets accomodation), labour cost, rents, bills etc.
There you have a net cost where usually (depends on country tax method), you get taxed and you also then deduct taxes.
Corporates on top use to allocate other costs, but lets not expand..

Anyway any percentage may seem enormus to field engineers, but when it comes the end of the year and you count your pocket money that GM goes off the fly....