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Are subs truly paid by the hour or by the job?

Discussion in 'Introduce Yourself to the Community' started by danielboone, Nov 9, 2011.

  1. danielboone

    danielboone Junior Member
    Messages: 24

    I have read everybody talking about subs getting paid from $50-$75 an hour or so, but are you truly getting paid for your time or is the contractor setting an amount for the lot and it averages to this dollar amount? The contractor I am looking to do work for has set me up with 5 bank lots and their estimate is either 3.5 hours or 3.5 acres. They might be one in the same. The agreed upon pay for 1"-4" is $270, 4-8" is $402 & 8-12" is $536. Around here the 1-4" will be the most common. That does work out to $75 an hour, but being a new guy I could see this taking WAY longer than 3.5 hours. I could also see myself putting in close to an hour and a half traveling from home to all the sites and then back home which I am pretty sure there is no compensation for. Does this all sound normal and reasonable to you? Part of me just wants to get some experience and not worry about the money for this first year. Next year I will have the experience and knowledge to see what else is available if this does not seem like such a good deal anymore.
  2. phillie

    phillie Member
    from indy
    Messages: 97

    Actually, I think that would be a better situation. It seems like there would be room to get your own stuff done as well. Getting paid hourly by a contractor, they usually want you running their stuff first making it hard to have your own clients.
  3. Cover Guy

    Cover Guy Senior Member
    Messages: 224

    the guy I sub to is switching to all by the job per inch iv done one lot for him this way for 3 years and love it
  4. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    I have paid subs both ways. I prefer to have a set amount per lot. That makes it easier for me to know my costs. Besides that I don't have to worry about my subs taking longer just so they can make more money.
  5. DuraBird02

    DuraBird02 Member
    Messages: 76

    I get paid by the hour regardless of the snowfall amount.
  6. chevyman51

    chevyman51 Senior Member
    Messages: 537

    I get paied by the hour no matter the amount
  7. danielboone

    danielboone Junior Member
    Messages: 24

    Being a new guy I would like to be paid by the hour. :) Of course I totally understand why a contractor would not want to do that. Does $270 for those 5 lots sound reasonable? This might be impossible for you to answer without seeing maps. They are all banks and pretty small lots. Building is in the middle, parking lot and drive lanes surround the building. Ideal would be one big job, but I understand I am the low guy on the totem pole. I don't want to spend 8 hours + all the expenses that go with it to make $270.
    Last edited: Nov 9, 2011
  8. Banksy

    Banksy PlowSite Veteran
    Messages: 3,113

    I'm paid by the hour with never a question asked. In fact, I've been too quick sometimes.
  9. chevyman51

    chevyman51 Senior Member
    Messages: 537

    I have had that problem a couple times to
  10. Cover Guy

    Cover Guy Senior Member
    Messages: 224

    That's why I like being paid by the job i have one lot that I make over double my rate doing it that way
  11. Banksy

    Banksy PlowSite Veteran
    Messages: 3,113

    Well, I don't own the company that I work for and he pays by the hour ($100). I have no intention of having my own plowing company here in NC, so it's this or nothing. I had my own business in Massachusetts though. Here in NC, it's not worth trying it on my own.

    When I move back to New England, I will still probably work for somebody else.
  12. BUFF

    BUFF PlowSite Fanatic
    from FR NoCo
    Messages: 6,762

    Paid by the job is best way for all parties involved, there's never a question when it comes to billing/getting paid and it drives you to be efficient which ends up making you more in the long run.
    Being somewhat new to this game you're freaking out a little but once you've had a couple events and more time behind the plow your on site time will drop.
    I still find it takes a couple of pushes on new accounts to find my mojo after decades of doing this crap. It seems like every site has it's own personality to deal with.
  13. 1olddogtwo

    1olddogtwo PlowSite Fanatic
    Messages: 11,394

    im paid by the minute
  14. thelettuceman

    thelettuceman PlowSite.com Addict
    Messages: 1,216

    What Buff said X 2
  15. ChicagoSnow

    ChicagoSnow Senior Member
    Messages: 229

    In all honesty, I find that any/all work that is paid by the hour is disrespectful to the skilled(or striving to do better) contractor involved (pick your trade or profession).

    It is my humble opinion that it is our mission as professional snow and ice management contractor's to provide our clients with the very best service outcome possible, reliably and for the best market based profitable price possible.

    Profitable for all service providers involved I might add and not just one entity like a national service provider, manager, etc. that has "no skin in the game".

    In most cases when we discuss snow related service and related pricing we are speaking about the direct use of production based time available to our individual operations. It is our job to maximize production minutes(individual or multiple) always and remain profitable forever.

    I ask this question.......

    When being paid by the hour (not by the job, outcome or season for that matter), why in the world would you want to become more efficient or invest in tools that can save time? Can someone please clarify this for me. I have a very difficult time grasping the long term effectiveness of time based pay arrangements. There should be no "manager" that has to watch qualified snow contractors perform, only to guarantee the desired outcome.

    What do you think? Where am I going wrong here?

  16. goel

    goel PlowSite.com Addict
    Messages: 1,079

    I like firm seasonal contracts, not by the hour or job.

    Done right - right equipment, right poeple and employee's you can make excellent money 4 out of 5 years and good money in year 5 when being paid by the seasonal fixed contract.

    It's about efficienty and teamwork.

    Contract is worth X, paid over 4 or 5 months or whatever the terms are. 1 Invoice per month generated

    You being efficient makes you lots of money, and thus Happy.
    You being efficient makes your employer (who you sub to) money and HAPPY
    You being efficient makes the customer HAPPY with excellent service

    Repeat business for both you and your employer. Future expanded business because your employer KNOWS you can handle it and get the job done and calls YOU when they get more contracts.

    Hence the TEAMWORK for a win win win situation between the you, your employer and the customer.

    Win - you get paid for work, and put a higher percent in your pocket for being efficient.
    Win - your employer gets paid, has a happy customer and also has a budget.
    Win - the customer has a budget, which they like and or need, and service that makes them happy.

    I work on both sides of the coin, I have my own accounts that we look after, I am a sub and I have subs.

    Subbing work is broken down to XXX per season, then down to XX per month, pick up your check on the
    1rst of the month.

    Is thier some risk of many bad years of snow in a row, absolutely. Is thier a risk of being run over by a car tomorrow, absolutely. Both are very small risks.