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Is this fair???

Discussion in 'Commercial Snow Removal' started by plowin boy, Feb 12, 2006.

  1. plowin boy

    plowin boy Member
    Messages: 85

    Here is the situatuation. A good friend of mine owns a lawncare business. He subs his snow removal out to another guy and realized that he is losing out on money by doing this, so he and I split the purchase of a new Western plow and put it on his truck. He has really no intention to plow just wants me to do it and he can collect a little bit of the money. We got our first snow since the purchase this weekend and were discussing how the money was going to be divided. Approx. total amount of money that was made after fuel was $1200.00.(we split the fuel cost) He also had one other guy helping out a little since it was my first time. He doesn't know what that guy is going to bill him. He paid me $400.00 and he made $800.00, I understand he has the insurance to pay for and the wear and tear on his truck, and also he has to send out the bills. My only problem is he did nothing with the plowing and I did 10 hours worth with of work with 1/2 of my plow on the truck. That is an approximate 70/30 split, do you guys think this is fair???? Should I receive more or less money or is this amount fair
     
  2. Scottscape

    Scottscape Senior Member
    Messages: 662

    **** happens man. Thats why I dont do business with my good friends because they think you owe them something. There are more variables in this situation.. plowing is half the work of this job. The times spent getting accounts, advertising, the time you spend talking to customers plays a very big role. I wish I could throw down 50% of the price of a plow and split the fuel cost..
     
  3. brunosplace

    brunosplace Senior Member
    Messages: 282

    Another point to think about is, he has about what, $32,000 invested in truck and plow, whereas you have $2000 in it. He is covering the insurance, maint of truck, getting the acounts, doing the billing, etc. Looking at the overall expenses involved, you got one hell of a deal by getting 30% of the income. IMHO.
     
    Last edited: Feb 12, 2006
  4. elmo1537

    elmo1537 Senior Member
    Messages: 116

    your getting screwed

    Cut your losses on the plow. Save your money buy your own truck and plow and go take all of his jobs that he doesnt want to do anyways. By the end of your second season you will have paid for your new plow and most of your truck if it was a decent one. You will have two year of plowing under your belt and all of his customers plus some of your own. Never ever enter into deals with friends because before it end you will be enemies. If you cant make more than 60 dollars an hour using someone elses truck even if it doesnt have your plow on it. Why would you even think about getting off of the couch.:gunsfiring::dizzy: :dizzy: :gunsfiring:
     
  5. baddboygeorge

    baddboygeorge Senior Member
    Messages: 237

    friends an buisness

    thats a no no . never mix friendships with business you'll get burned.if i were you he would give me half of my plow money back an invest in a plow rig an do it yourself see ya george
     
  6. BRAAAP

    BRAAAP Senior Member
    Messages: 114

    partners are for dancing!!! Get your own truck and plow
     
  7. troy28282

    troy28282 Senior Member
    Messages: 178


    I couldnt agree more. You guys should've maybe figured this out before you even plowed. At least get something written on paper so you dont get burned so bad.
     
  8. Sno

    Sno Senior Member
    Messages: 320

    I'm with Bruno,. you got a heck of a good deal!

    And yes, thats why you dont deal with friends.

    He set you up, and you are already thinking you where ripped off.

    You almost made your money back on HIS accounts and you gripe?

    Some of the posters are already saying steal his accounts?

    Makes you wonder why some bussiness owners are hardnoses... :rolleyes:

    He still has one more guy to pay... I bet when this split is all over, he is going to wonder what the heck he took on all this expense, risk, discontent and why he even bothered.
     
    Last edited: Feb 12, 2006
  9. Jay brown

    Jay brown PlowSite.com Addict
    Messages: 1,783

    i'd try to stay friends with him and keep working for him. $400 is good money for driving his truck for 10 hours. all you have to do is show up for work sounds like he has to do all of the hard stuff. keep up the good work
     
    Last edited: Feb 12, 2006
  10. justme-

    justme- 2000 Club Member
    Messages: 2,138

    Pay rates vary by the region, $60 per hour is TOTALLY unrealistic in my area.

    If you ARE truly only plowing and he is paying the truck expenses, dealing with customers and finding customers, $40/hour ain't too bad for an unexperianced driver...... My question is how much of that is you're share for the plow investment, and how long before the plow is paid back, Then WHO get's ownership of the plow?

    Business with friends is tough, and really a bad idea.

    I work for a very close friend from time to time when he needs a hand painting- he pays me cash at the end of the day and leaves me alone all work day. If he needs help doing a job that he's not as experianced as I am he pays me "his" pay for the day and takes mine (I get the higher pay) and basically run the job with him as a sub teaching him or reaffirming to him how to do it.

    As long as I only work a couple days a summer for him no problems, but I will never work more than that.
     
  11. go plow

    go plow Senior Member
    Messages: 322

    look , i was in the same boat, i once had a partner, we needed a extra plow truck, we got overloaded with clients and instead of getting a new truck we decided to put a plow on his personal truck, i paid half of the plow, half of the fuel. but he still had to insure his truck reg... and every thing else !!!
    we did this to save money, we didnt have the money to have two new work trucks that we needed to pay for each month so this is how we got around it... it worked, i did make less, but in my case i saved on a new truck!!! plus, he still had to pay for the truck i used for plowing.... in your case , i can only say what i would do!!! and as i no longer have a partner.. i would never ever have one again........ the way i look at partnership is you will end up having more head aches with one ,then with out one !!!!!
     
  12. plowin boy

    plowin boy Member
    Messages: 85

    My question is how much of that is you're share for the plow investment, and how long before the plow is paid back, Then WHO get's ownership of the plow?


    It will take me about four more pushes to make my money back on the plow.
    When we split the cost of the new plow, it was his idea to give my share of the plow back to me whenever I wanted. It probably isn't that bad of a deal considering he said when I wanted the money back he would give it to me. So it really is just like me lending him the money and getting paid 30% of the profit
     
  13. douglasl330

    douglasl330 Senior Member
    Messages: 356

    plow boy--I think you got a great deal!------find out if he is 1099 you--if your bent now wait till tax time---drivers get anywhere from $15-25 in our area . If this was your first time out-be on the low side---if your making $10/hr on your investment be happy---- I think he is being more than fair--JMO
     
  14. Jpocket

    Jpocket Senior Member
    Messages: 302

    So your telling him to take all his freinds accounts? Thats really ignorant
     
  15. plowin boy

    plowin boy Member
    Messages: 85

    find out if he is 1099 you

    He says he is sending me a 1099, but if we don't get much snow the rest of the winter, he may not
     
  16. ICindrich

    ICindrich Senior Member
    Messages: 120

    Tell your buddy that it usualy costs about 100 bucks for an accountant to do a 1099 and the feds only fine about 75. Lots of our carpenters haven't paid their taxes since before I was born, so we do them a favor!
    Ivan