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For those of you with employees....question

Discussion in 'Business Fundamentals' started by Mrplow247, Feb 13, 2012.

  1. Mrplow247

    Mrplow247 Member
    Messages: 46

    For those of you paying employees to plow for you i have a question. Do you just pay them a solid hourly rate regardless of what they are plowing?

    For example i have a route of about 16 driveways that pays a few hours.

    But then i plow 2 banks and a fairly large lot at the end of my route. the banks take about 35-40 minutes each and the other lot takes a solid 1 hour and 15 minute.

    The problem is i only make 25-35 per hour depending on how the snow falls. So my issue is that the biggest lot takes about 1/8 of a tank of fuel which costs about 12-15 dollars, and i only get 35-40 dollars to plow it, so to clear a huge lot im only making about 15-25 dollars profit. Does this sound correct
     
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Your rate is way to low,even for Buffalo! If you pay him by the hour doesn't matter what he's plowing.
     
  3. procut

    procut Senior Member
    Messages: 902

    x2. If you're only getting 35-40 dollars to plow your biggest lot which takes a "solid hour and 15 minutes" then you need to triple or quadruple what you are charging.
     
  4. peteo1

    peteo1 PlowSite.com Addict
    Messages: 1,660

    Holy crap! If you're willing to work that cheap I have a few ideas!!! LOL
    Not to tell you how to run your business but you should pay your guys their regular rate no matter what they are plowing.
     
  5. Eronningen

    Eronningen Senior Member
    Messages: 442

    Employees are always paid their hourly rate the entire time they are working for me. Sounds like you need to go back to the drawing board with your estimating and bidding
     
  6. I was hoping the OP meant he is PROFITING 35-40 (still WAY too little). As far as his question, my employees are paid their said rate for the time they are working. You wanna work for me as a sub lol i'll double your profit margin lol
     
    Last edited: Feb 13, 2012
  7. Mrplow247

    Mrplow247 Member
    Messages: 46

    Clearly i need to find an employer in this area that is paying better wages. On 4-6 hour trips im only making 100-150 dollars and i have to run my own truck and fuel.

    Its a shame that in my area there are so many employer yet i have not been able to find a good one even with a college education and 8 years experience in snow removal using my own equipment
     
  8. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    So your a sub not a company hiring guys.
     
  9. Mrplow247

    Mrplow247 Member
    Messages: 46

    Yes i am a "sub" i guess but more of an employee, i get an hourly rate. In my opinion a "sub" has contracted work for a specified compensation. Employees get hourly rates to do as they are told.
     
  10. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    You are an owner who subs himself out.
     
  11. Mrplow247

    Mrplow247 Member
    Messages: 46

    There is no way in my current situation that at 25-35 per hour that i am covering the use of my truck, fuel, and still making money. Regardless of the little amount of snow we have had its almost better off because im not making enough to make it worth it anyhow.
     
  12. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    What do think a fair rate would be for you?
     
  13. Mrplow247

    Mrplow247 Member
    Messages: 46

    In theory, yes i guess that i am, i never really saw it that way because im only "subbing" to 1 person, and its getting to be a tough situation because he doesn't understand that plowing 2 banks, a large lot, and 20 drives should pay more than 100 dollars, because its costing me 40-50 in fuel.

    @ Grandview, any ideas on how to go about subbing for anyone else that would be a little more fair? Soon im going to need work for summer and i dont want to over invest in equipment and insurance unless i can rope in some work.
     
  14. Mrplow247

    Mrplow247 Member
    Messages: 46

    I am running a 2006 crew cab, 6.0 diesel, with a 8.5 vplow.

    Judging by my current earnings and expenses i think that i would need to see at least double from what i am now.

    If i wanted to spring for proper insurance, advertising, and feel like i would be able to afford to maintain my truck after the plowing season

    In my honest opinion i am thinking around 50-60/hour
     
  15. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    He understands,he hired you and you agreed to that rate.You can just play out the season and look again.As for summer work if your going to do anything with another company,you'll be in the 8-12 hr area. Since your subbing ,I assume you have GL and commercial insurance ,if so any reason why you can't go on your own?
     
  16. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Did you buy that truck to plow with or was it a daily driver first?
     
  17. Mrplow247

    Mrplow247 Member
    Messages: 46



    I took his work based on the fact that he told me he was going to actually sub me work. As far as signing up extra work, taking out some of the money and paying me to do the rest. Seeing as i am only plowing for him as an hourly rate type deal i do not see that as subbing.

    I do plow on my own, i only have about 10 drives. When i decided i need to plow it was late in the year. I have had crew cab f250's with plows forever, regardless if im plowing as a business or not.
     
  18. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Don't matter,any way you look at it. your a sub,your an employee when you sign all the paper work and get a w-2 that makes you an employee.Just go and pick up more work for yourself next year.

    As for the truck,you need to work out the percent of your truck as to personal and business.
     
  19. Mrplow247

    Mrplow247 Member
    Messages: 46

    Much easier said then done. If i don't find some work for summer i don't know if ill make it to next winter. I do have an interview with a place that called me for sub work tomorrow.
     
  20. Chineau

    Chineau Senior Member
    Messages: 447

    More, start at 75 one hour min. and see the response.tymusic