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finding out local sub pay

Discussion in 'Commercial Snow Removal' started by gc3, Mar 21, 2013.

  1. gc3

    gc3 Senior Member
    Messages: 713

    How do you subs find out the average pay rate for your area?
    Do you just call the landscaping companys around October every year? I didn't know if they would give that information out over the phone so easily.
     
  2. TCLA

    TCLA 2000 Club Member
    Messages: 2,699

    I'm sure over the phone they will give you a range of pay based on certain criteria.

    It's best for you to be prepared to ask more questions and provide more information than just that.

    Good luck to you! :drinkup:
     
  3. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    Here is how I do it. I figure out what I need to make to cover all expenses, and make a profit. I then call the contractors that need subs, and tell them how much I need. If they can't pay that they tell me. I thank them, and call the next contractor. I also use subs on some accounts. On those accounts, I figure out what I am charging, then figure out the price I can pay, and still retain a large enough amount to earn a profit. Then I start calling my subs, and let them know the prices available, if they can do it for that price great, if not, I thank them and call the next sub on the list.
    I charge the right amount for my company to make a profit without shortchanging myself. I also feel I pay the right amount for other people to make a fair profit as well.
     
  4. gc3

    gc3 Senior Member
    Messages: 713

    Do most of them just ask for subs in the paper? I only saw one ad for this winter. Even if you tell the guy what you want and he says yes, how do you know if he's a lower paying contractor in your area? Do you ever call places that aren't advertising they need subs just to compare rates?
     
  5. leigh

    leigh PlowSite.com Addict
    from CT
    Messages: 1,990

    Ask others that sub.Or ask me! If you were in my area I would tell you what I pay subs,no big secret.Even if I didn't need you I would tell you I pay between 60 -75$ hr,and a free crew all you can eat breakfast,perks like a heated shop if you need to work on truck etc,and I pay within 2 weeks,sometimes within days.
     
  6. gc3

    gc3 Senior Member
    Messages: 713

    Most guys plowing around here act like your trespassing
    on their lot when you drive by them or your gonna take their hours away. It might be easier to find some good size lots & ask who does their snow removal and call them up and ask them. Do you bump your subs pay up each season if they come back and plow for you?
     
  7. TCLA

    TCLA 2000 Club Member
    Messages: 2,699


    Do you think the client will pay the prime contractor more every year just because he wants to come back and service the property?


    It's difficult to do that when the trend is this.... in order for the prime contractor to secure the work (so he can then give you the work) you kind of need to show a cost savings or value increase or you're not getting the work in the first place.
     
  8. VIPLandscaping

    VIPLandscaping Junior Member
    Messages: 12

    I was asked to sub for several contractors this winter. The pay ranged from $55 a hour to $75 a hour. Each sub was different in what they wanted with experience. One Sub was very specific in how many years the operator was plowing for and how big of a plow was on it, and how reliable the truck was, the more he liked the higher per hour the rate was.
     
  9. gc3

    gc3 Senior Member
    Messages: 713

    Some contractors around here pay you alittle more each year if you come back and work for them again. Just a little incentive to the subs so they don't have to keep going through guys. I know you can't expect that every year but you don't want to get paid $ 50 an hour if you have bigger, better, & reliable equipment and they pay everyone the same and another contractor will pay $ 75 for your bigger equipment and experience. You just have to weigh the pros and cons of it all. If the local area is paying $ 50 then that's fine if that's what everyone is paying. I just don't want to sub for a guy that's a tightwad and not fair.
     
  10. VIPLandscaping

    VIPLandscaping Junior Member
    Messages: 12

    Yeah that’s true I just was seeing what contractor brought the most to the table, it does vary greatly. The problem where I am now is we have received the most snow out of everybody and contractors don’t have the money now to pay their subs. It happened at a big plaza that I know of, they did a seasonal bid and lost their shirt with all the snow we received.
     
  11. gc3

    gc3 Senior Member
    Messages: 713

    I can see that happening. Some of these guys here go in and try to take over the area and undercut it by a big percentage just to get the lots. Did you just call those contractors and ask them how much or did you know someone that worked there?
     
  12. VIPLandscaping

    VIPLandscaping Junior Member
    Messages: 12

    The contractors actually called me seeing if we would be using all of our trucks this winter, the pay ranged because the plows I run are 8ft, 8 1/2ft, and 9ft. The best accounts are those in big parking lots and plazas because it less wear and tear on the trucks, and less driving, you don’t have to worry about your employees driving all over when it’s snowing out.