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Had an offer yesterday, to plow for a percentage

Discussion in 'Introduce Yourself to the Community' started by dave_dj1, Dec 29, 2010.

  1. dave_dj1

    dave_dj1 Senior Member
    from NY
    Messages: 350

    Ok, first let me say I am NOT in the plow business, I have had accounts years ago but now I just plow mine and my neighbors drives. The guy that asked me to take on half of his accounts is quite ill, (he lives three houses down from me) he say's it would be only for the remainder of this winter but I can see where he may not be able to plow at all in the future. He told me he has 40 drives, one commercial (small square lot).

    SO what would be a fair percentage using my truck?

    I have a 2010 Dodge 2500 HD reg cab, auto with a Hemi and , locking rear diff, C-8 Meyer plow.
    We got about 12" of windblown snow here the other day and I had no problem pushing it around where I wanted it with the truck, I ended up plowing out two other friends and helping blast the beginning of the drive across the street so they could finish it with their atv.
    side note; I don't do much in the way of work in the winter (not by choice but no business) so time is not an issue.
  2. ColvinsPS

    ColvinsPS Member
    Messages: 73

    I would be hoping for about 80% of what he is charging the people you would be plowing. Especially since its all your time, equipment, and expenses. He should keep a part since he has established the business relationship but truly he is putting little to no effort into that if you are doing it. His time would be in billing.
  3. EvenCutLawnCare

    EvenCutLawnCare Senior Member
    Messages: 207

    75-80 percent is where i would wanna be....considering the circumstances
  4. Dr Who

    Dr Who Senior Member
    Messages: 637

    I agree, 75-80 percent as he has to make some money also.

    That is what I charge for the ones I do as a sub, except for the lots they(who I am subing for) under bid, then I charge them what they are getting paid. Not my fault they under bid and I have to make money, not saying I do not get them out of a spot, but what is fair is fair.
  5. MikeBL

    MikeBL Junior Member
    from Canada
    Messages: 8

    I used to own a franchise and it was 80% for snow.
  6. dave_dj1

    dave_dj1 Senior Member
    from NY
    Messages: 350

    thanks for all the input, I will talk to him soon.
  7. Dr Who

    Dr Who Senior Member
    Messages: 637

    Snow plowing franchise????

    I guess that is casue you guys up in Canadaland get snow for 13 months out of the year....
  8. linckeil

    linckeil PlowSite.com Addict
    from CT
    Messages: 1,259

    who covers any damage you may accidently cause to a customer's property while plowing the accounts?
  9. Elite Property Services

    Elite Property Services Senior Member
    Messages: 230

    I would want to look at the numbers to determine a FAIR percentage unless you are looking to just help him out and the numbers dont matter.
  10. Wayne Volz

    Wayne Volz Senior Member
    Messages: 694

    How can you come up with a fee

    How can anyone decide any percentage is fair without knowing what the guy is already charging for the job? No price has been given. 75% of What?

    I may be missing something but before I would help you decide what is fair I would need to know what fees are currently being charged, what the trigger points are and how spread out are they? These are just a few things to think about first.
  11. MikeBL

    MikeBL Junior Member
    from Canada
    Messages: 8

    Window cleaning actually but from nov1 - mar31 it was snow.
  12. dave_dj1

    dave_dj1 Senior Member
    from NY
    Messages: 350

    Yeah, I have been thinking a lot about this, I think it's time for us to have a meeting and get some of these questions answered.
    thanks again, I'll stay in touch.
  13. M&M

    M&M Senior Member
    Messages: 312

    I have paid out 100% to a sub for residentials when I was in a bind. I have also paid out 50% when I had time to line someone else up. These were basically one storm occurences. If I was setting up a sub for the season, I would want to be at 50% pay out. I believe I am on the higher side of things for my pricing.
  14. Wow wish I could find subs who would work for 50% Must be very desperate guys up there. I could not plow a thing just sit home n still make a good $. Lol send them guys my way! Its used to 75%-80% around here for a sub doing the entire job, but might be different now, as the only subs I use are hourly on some of my bigger sites
    Last edited: Jan 4, 2011
  15. dave_dj1

    dave_dj1 Senior Member
    from NY
    Messages: 350

    I just wanted to update everyone, I never did do any driveways for my friend , I did clean a couple up for him out of friendship when his truck was in the shop (transmission failed)
    I ended up picking up 3 drives, enough for this year...lol. I turned down two steep straight up ones right up the street, maybe next year I will do them (I'll put studded snows on)
    The truck plows fine, maybe next year I will take on a few more. I think the truck did ok for haveing 26k on the stock tires! Truck is a 2010 2500hd dodge with a hemi and automatic, longbox reg cab.
    pray for a slow meltdown :mechanic:
  16. bradlewislawnca

    bradlewislawnca Member
    Messages: 59

    Big problem you may face is insurance. 80% if everything was legit. If he is going to 1099 and he is listed as additionally insured. If he is claiming the money and you are getting cash and not claiming he will lose by paying your taxes... something to think about. I have someone that I send jobs and ask for $5 out of $35 that is 14%. That is when a new person calls and we can't get there with too much work with our customers.