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Hourly wage getting cut?

Discussion in 'Commercial Snow Removal' started by blackDiesel, Oct 25, 2010.

  1. blackDiesel

    blackDiesel Member
    Messages: 46

    What's up, I have a meeting with the boss of the company I subcontract for. He mentioned this year things may be different. He said that instead of paying 65 an hour, he wants to pay his subs by the contract... Now I've only been in the business a couple years, but this sounds like a bad idea to me. What's your experience with this type of contract? Also what should I be asking him when I meet with him tomorrow (tuesday)? Thanks :nod:
  2. TCLA

    TCLA 2000 Club Member
    Messages: 2,696

    If you haven't noticed already, things are getting very tight around here.
  3. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    Paying by the contract can work in your favor as well. You just need to know your costs, and the time it takes to plow each lot your going to accept a contract on, and you'll be fine.
  4. Schuley

    Schuley Senior Member
    Messages: 160

    I agree, I have 2 sites I pay someone to do for a set rate. Since its only about 1.5 - 2 hours worth of work, I didn't want to pay them hourly, and they agreed. It ends up working out in their favor, they make $10 or $15/hr more. I find that if your hourly, sometimes you take your time more so then if you get paid for what you do...
  5. blackDiesel

    blackDiesel Member
    Messages: 46

    Those are good points, I guess I just have to get some solid expenses together so I know what I'm looking at making in profit. If its not in my favor than I'll address that with him when we talk- thanks
  6. flykelley

    flykelley 2000 Club Member
    Messages: 2,124

    Im hearing a lot of talk from the Michigan guys that use subs that they won't be paying the 65-75 a hour rate any longer, most are talking about 45-55 a hour for subs. It sucks but things in Michigan are bad right now.

  7. blackDiesel

    blackDiesel Member
    Messages: 46

    Well that's a rumor I don't like!
  8. Mackman

    Mackman PlowSite.com Addict
    from S.E. PA
    Messages: 1,356

    Just keep in mind it is most likely not in your favor. Cuz if it was he would of just kept you at hourly;y like he always has. There is a reason he is changing it and I'm sure its not so you can make more money. Just my 2cents.
  9. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,382

    I know a guy who did this last year and it didn't go so well for his help. Needless to say they all went else where from what I hear. It can work but just make sure you work out everything from triggers to blowing and drifting snow to payments. Boy, it seems everybody want to act like a property management company.
  10. MileHigh

    MileHigh PlowSite.com Addict
    Messages: 1,827

    Now what exactly do you mean with "by the contract"

    Are the contracts seasonal and he wants to pay to total amount for the entire season?

    Or does he want to pay his subs exactly how he bills out on the job?

    The way I see it is maybe his hourly subs were taking a bit too long "milking it" or padding the bills on some of his jobs and it affected his business negatively, and now he wants to make sure that his company and his clients are not going to get screwed over by hourly sub crews that milk it.

    Pretty common with the whole hourly thing.
  11. Mackman

    Mackman PlowSite.com Addict
    from S.E. PA
    Messages: 1,356

    Yes it is more common then it should be. But if that is the case he should get rid of all the subs that are milking it. If he is paying good money he will have no problem finding subs that will be honest.
  12. TCLA

    TCLA 2000 Club Member
    Messages: 2,696

    There you go.

    Why would one risk paying another an hourly wage, that could potentially eclipse what the site actually brings in?
  13. lilweeds

    lilweeds PlowSite.com Addict
    Messages: 1,178

    One thing it will do is make you more efficient. For me it keeps my guys from lollygaging around the lot.
  14. grf_1000

    grf_1000 Senior Member
    Messages: 295

    things are crazy. way up here i pay subs 50/hour with a v plow. i pay better then anyone within miles. was asked today how much i charge for a quote, the guy pretty much told me i was crazy if i charged 55/hour for a plow truck with a v plow. i quoted 55 cuz it was 5 hours per event and it would keep 2 trucks going steady. i was told he can get 2 trucks at 35/hour. i know i'll drive by the lot this winter and see the 2 1979 f-150's with 7' plows being towed to the shop and wait for the phone to ring. then the prive goes to 65/hour lol