The Cost of The Middle Man

The Cost of The Middle Man

financial literacy

Today I needed help moving some very large items such as a 250 pound TV and so I decided to hire the help of a moving company. I was comparing rates and this company happened to charge about $100/hour. I figured that they could get the job done fast anyways based on the reviews I read.

What ended up happening was that the guys were an hour late for the job as apparently they were oblivious to the call time. The person told me how the company was phoning him to verify the schedule which he was unaware of as he was doing another job. I thought that was a weird answer and that then brought up a topic on how he wasn’t actually an employee for the company but rather they simply subcontracted the work to others.

That was kind of surprising as I thought the company had its own internal staff and equipment. The person then explained to me how they basically got paid about 30% of the total bill. What was really interesting afterwards was that I looked up the number/company that the guys operated if I dealt directly with them and I immediately found a listing online of them advertising their moving services for about half the price at $50/hour.

I was just thinking how that is quite a substantial difference if you were to cut out the middle man. That can be true for almost anything when it comes to buying goods or services and is a great way to save money.

In a more conspicuous note that was related to this situation, the guys were scheduled to do the job at 9 am and as mentioned they told me that they were doing another job. Yet with the research I did I found out that they posted an advertisement about their service on a site at around 8:50 am today. Makes you wonder huh? Now there’s a nightmare too for people who are the middle man as they will get all the rap for the job’s end result and happenings.

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