You are comparing apples to oranges, you are trying to apply a consulting/general contractor model to a cost of goods business. Typical contractor type of model you are operating is a 2/3 to 1/3 typically.. that’s a different model. Go ask the guy you hire to actually do the work how much he plans on spending on raw materials for the job, if its over 30% he won’t be in business long.
Your business is basically that of a broker, you aren’t directly doing any of the work, just booking the job and then passing it along to someone else to provide the labor and taking a cut for brokering the deal. That’s a completely different model. If you want to have apples equivalent to that model, thats the 30/70% split they have on the sale of digital content such as apps and music on itunes. They keep 30% of the sale and in return they provide the marketplace and do all the things needed to make a sale happen. That business is comparable to the model you are using and its breakdown is about the same.
I see, so since I didn't actually install the carpet I should not take a large cut. I agree totally by the way.
So then tell me what did Apple do to actually make the music they are using and paying $0.002 a play on?