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How much to pay a ""Sub""

Discussion in 'Business Fundamentals' started by J.R. Services, Sep 19, 2010.

  1. J.R. Services

    J.R. Services Senior Member
    Messages: 141

    I was wondering what a good range of hourly pay would be for "sub" with a 96 f350 srw 5spd 4wd, but heres the kicker, he's a good friend of mine, out of work and can't afford to buy a plow set up, so I'd buy the plow, mount it, and pay for fuel when plowing. I was thinking 20-30/hr? Thanks
     
  2. LoneCowboy

    LoneCowboy PlowSite.com Addict
    Messages: 1,760

    then he's not really a sub is he?
    he's an employee.

    bad bad bad situation, do not mix business with friendship, you'll end up losing both.
     
  3. RLM

    RLM PlowSite.com Addict
    Messages: 1,270

    What Brain said.
     
  4. ff610

    ff610 Senior Member
    Messages: 320

    If you wanna help him out, set him up as a sub, pay him a reasonable wage, then have him return a percentage of his wages back to you to repay the plow. Don't get into paying for his fuel and that mess. This way you can 1099 him on the full amount of his services.
     
  5. got-h2o

    got-h2o 2000 Club Member
    Messages: 2,439

    I think these guys, although are trying to help, are looking too far into things. If he's a good buddie of yours, go for it. I plan to do the same thing with one of mine this year; but I didn't plan on paying for fuel. It may happen, it may not. Fuel will be too tough to break down in my opinion. As for the plow and stuff, I planned to allocate $20 an hour or so for my end of it and the rest will go to him. I'm not greedy and want to help him out, but also want to make it worth while. He'll make sub rate, either for me, or someone I set him up with, and he'll pay me the difference in cash......and I trust him to do it.

    BUT I have plows and mounts, and access to anything I'll need, so if I make $1k-1,500 all year it won't bother me. I'll still have a plow that's worth $2,500 and I won't even have that into it.
     
  6. viper881

    viper881 Senior Member
    Messages: 459

    $20 sounds fair i guess. Not sure of your market over there
     
  7. got-h2o

    got-h2o 2000 Club Member
    Messages: 2,439

    I pay guys more than that to sit in my trucks to plow.
     
  8. viper881

    viper881 Senior Member
    Messages: 459

    The market over here is soft. You have a guy in a stick pickup truck, with a plow of someone else's. So im guessin he hasnt plowed before. Your also paying for his fuel. They wont be quick, your paying for his fuel, plow, its a buddy so prob....is umemployed...and wont show up on time. $20 sounds fair to me until he gets a few plows under his belt. I would want more than that. But you might as well find a 2nd sub for the first sub for when his truck breaks down.
     
  9. Pushin 2 Please

    Pushin 2 Please PlowSite Veteran
    Messages: 4,574

    x2..... My one guy gets $30 an hour to drive one of my trucks! If he only pays $20 an hour, they won't be friends for long!:laughing:
     
  10. viper881

    viper881 Senior Member
    Messages: 459

    What do you guys pay for a loader operator?
     
  11. bighornjd

    bighornjd Senior Member
    Messages: 249

    $7.75 an hour. I only charge my customers $21.50 an hour for a loader so I won't pay an operator any more than that. I'm a lowballer....;) :gunsfiring:

    I think the average around here for a non-union guy with some experience is around 20-25 per hour. Obviously some get way more and some less but I'd say that's a fair average.:)
     
  12. viper881

    viper881 Senior Member
    Messages: 459

    lol...gotta love low ballers. No way I could pay truck operators $30 over here and still make enough profit to make it worth it for me. $30 for a loader operator is max for us
     
  13. TPC Services

    TPC Services Senior Member
    Messages: 875

    five bucks!!!!
     
  14. Wayne Volz

    Wayne Volz Senior Member
    Messages: 694

    Think about this

    The best thing your friend could do (or you could do for him) is to calculate his truck cost per hour and his labor cost per hour based on a minimum he wants to make. Determine his break-even point for his truck and his labor. Then you can come up with a price to pay him. However, $20.00 per hour will not cover his costs for his truck and his labor.

    Good luck with that one.

    I would also have to agree with the working for friends issue as well. This does not normally work out well. (Sometimes it does - but generally not)

    Hope you have a great winter if it ever gets here. 96 today in Louisville, KY.
     
  15. forestfireguy

    forestfireguy PlowSite.com Addict
    Messages: 1,276

    I wouldn't do the friend and money combo. But hey that's just me. On the plow thing guys, he said he'd collect $20hr, if he's making 70-80hr, then the guy still gets 60 in his pocket, if it's 1099 he can roll the dice with uncle sam.
     
  16. J.R. Services

    J.R. Services Senior Member
    Messages: 141

    I also have the option to buy the truck for a little bit of nothing, and could just pay him to drive. Or let him pay me back and pay him as a sub.
     
  17. szorno

    szorno Senior Member
    Messages: 308

    Here is what I did with modest success- I bought the plow but made him sign a note for it. Then I set him up as a sub and helped him get insurance. Then I gave him his paycheck with the plow payment removed up front. I occasionally fronted him $30 for fuel and that got deducted from his check too. Worked reasonably well till he decided to do the truck swap thing. I should have put a stop to it there. But, I helped a young friend and both of us made some money. and we are still friends. (thanks to a written note on the plow and a written subcontractors agreement)