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Facilty Management Companies

Discussion in 'Commercial Snow Removal' started by Veggie Farmer, Dec 21, 2000.

  1. Veggie Farmer

    Veggie Farmer Junior Member
    Messages: 11

    I have some accounts that I plow as asubcontractor for a facilty management company. This co. has a lot of multi-site, multi state accounts. These jobs are some of the best paying accounts I've ever had in 18 years of plowing. I know that the management company gets paid per visit same as I do. These jobs have 1" or 2" triggers with automatic salt provisions. I was wondering if anyone knows the approximate going rate for a facility management company? For example: Do they get 20% above what they pay me?
  2. John Allin

    John Allin PlowSite.com Addict
    Messages: 1,327

    Why do you want to know, and what difference does it make to you - as long as you're making good money and you get paid on time ??

    Actually.... it varies, however the norm is 15% to 20% depending upon how much work is involved and what the deal is with the property owner. The total number of properties involved makes a difference too (high number of sites means lower total margins for the managment company). Also, usually the property manager is well aware of what the facility management company is making on you. They don't hide their margins to the property owner (like we often do with our plowing customers).

    Sometimes it is a flat fee arrangement with no markup on the invoice from you. That fee arrangement can vary widely too - depending upon the quantity of sites involved.

    Hope that helps.....
  3. Veggie Farmer

    Veggie Farmer Junior Member
    Messages: 11

    Thanks John

    It doesn't make any difference to me I was just curious. They sure seem to put a lot of time into their accounts, roving quality control people & digital pictures at least every couple weeks. Also this helps me when I bid on independent jobs. Thanks John!