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Clean Hands Profit From Snow/Ice Services

Discussion in 'Commercial Snow Removal' started by mike thunder, Jan 7, 2012.

  1. mike thunder

    mike thunder Senior Member
    Messages: 110

    A top notch operation shows up to your place with a unique offer. They have cutting edge late model equipment, elite infrastructure and sound morals/ethics. They offer you a 7.5% gross commission in exchange for all of your snow/ice management accounts. You retain ownership of all the accounts. When the season is over you go back to your usual operation. You do nothing but allow them access to your snow/ice accounts. They have a rock solid "non-compete/no solicitation" contract to insure your not going to lose your accounts to them. They don't offer lawn/landscape service, nor do they ever want to. They have a guarantee that pays out the entire seasons worth of lawn/landscape service to you for any/all customers that cancel summer service with you because of inadequate service performed by them.
    Voice your opinions.
     
  2. NickT

    NickT Senior Member
    Messages: 707

    Subscribed
     
  3. dieselss

    dieselss PlowSite Fanatic
    Messages: 10,958

    sounds to good to be true,,,whats in it for them/you??
     
  4. magnatrac

    magnatrac PlowSite.com Addict
    Messages: 1,055

    Ok so what are the fine details ???
     
  5. cwby_ram

    cwby_ram Senior Member
    Messages: 907

    Intriguing, I wanna here more too.
     
  6. cet

    cet PlowSite Fanatic
    Messages: 7,202

    If I understand this correctly you are saying they will give you $7,500.00 for every $100,000.00 worth of work. I wouldn't sell my contracts that cheap. So you get it all back next year, what do you do with all your equipment this year. That's cheap IMO.
     
  7. dieselss

    dieselss PlowSite Fanatic
    Messages: 10,958

    what if something happens to them/equip. are you going to have to go out there and finish?
    are your clients going to contact you or them if something goes wrong???
    still sounds fishy???
     
  8. Pristine PM ltd

    Pristine PM ltd PlowSite Veteran
    Messages: 3,794

    Where is the liability? Sounds interesting though.
     
  9. cwby_ram

    cwby_ram Senior Member
    Messages: 907

    I agree, fishy. Unique though.
     
  10. Italiano67

    Italiano67 Senior Member
    Messages: 640

    How do they know you price out your jobs to even make 7.5 % profit?? Sounds like they are desperate for work. I wouldnt touch that deal. They could screw up all your business relations and the accounts might not be back.
     
  11. dieselss

    dieselss PlowSite Fanatic
    Messages: 10,958

    how do you know that there not just gunna go behind your back next year and lowball you for the same accounts
     
  12. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Why don't this company just hire a sales guy to go out and get work for them and pay a commission on it?
     
  13. SNOWLORD

    SNOWLORD Senior Member
    from MN
    Messages: 610

    This would not be for me.
     
  14. procut

    procut Senior Member
    Messages: 902

    Strikes me as something that could go badly quite easily.
     
  15. icudoucme

    icudoucme Senior Member
    Messages: 349

    are they from Nigeria??
     
  16. Pristine PM ltd

    Pristine PM ltd PlowSite Veteran
    Messages: 3,794

    hahaha, the concept has to many flaws, If it worked perfectly, I would be tempted!
     
  17. mike thunder

    mike thunder Senior Member
    Messages: 110

    You would get a share (7.5%) for doing nothing but allow them to perform winter services to your customers.
    They get to provide your customers a service for a profit (business 101). Customers they otherwise would not have access to because they don't/won't offer summer services.
     
  18. mike thunder

    mike thunder Senior Member
    Messages: 110

    The fine details look just like all of our contracts. It contains all the basics like insurance, scope, etc;.
     
  19. Pristine PM ltd

    Pristine PM ltd PlowSite Veteran
    Messages: 3,794

    why now? Why were they not talking to you in July?
     
  20. mike thunder

    mike thunder Senior Member
    Messages: 110

    Yes. You're not selling them, but rather leasing or renting them out. Your equipment can sit or be sold, you won't need it, making the 7.5% 90% profit. You can sign a multi-year deal as well and not have to worry about snow ops for three or five years.