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more work.

Discussion in 'Business Fundamentals' started by PremierLand, Aug 16, 2008.

  1. PremierLand

    PremierLand PlowSite.com Addict
    from detroit
    Messages: 1,572

    what do you suggest when you get more work???
    buy additional vehicles or sub contract??? and why?
    Last edited: Aug 16, 2008
  2. 06HD BOSS

    06HD BOSS 2000 Club Member
    Messages: 2,611

    im not in the same boat as you but...
    if youre gonna buy more trucks or even just one, thatll be idle in the summer, ask yourself how that cost will compare to you paying subs for the winter. If you spend X amount on the truck, X amount on insurance, X amount on a plow, X amount on fuel, X amount on up-keep, X amount on paying a guy hourly to run it...how that does compare to what you might end up paying a sub(s) for the entire season? Only you can answer those questions.
    On the same note, if you find it is more economical to sub other guys out, make sure they are guys you can trust and rely on, as they are representing your business and are the ones who will be making you money.
    I would sit down and rough out some numbers to see what looks like a better option that could potentially make you, or save you some money.
  3. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    When I think about expanding, I never consider sub-contractors. That's just me. I think how much will the equipment cost to do the job, and if it can be paid for in a years time doing the job. In my case, I don't have to worry about man power, because I have guys that don't work during the winter that would like to.

    06HD BOSS made some real good points that everyone should think about if they are going to buy equipment or take on new work. For some, it just makes more sense to sub it out. But if you do, you have to be more of a boss and less of a worker. You have to keep track of their work and do yours.
  4. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,032

    You get to a certain point where you can only find so many good operators to drive your equipment and then after that you start using sub contractors. Another reason is the upkeep of equipment, we can only handle maintaining so many peices. A good subcontractor looks after his machinery and takes alot of the stress off you and you both profit from that. A bad sub contractor makes your life hell and loses the job for you. Bottom line, if you have good operators available, I 'd buy the equipment, if your in the snow game for the long haul.
  5. T-MAN

    T-MAN PlowSite.com Addict
    Messages: 1,363

    If your going the sub route, hire guys that only work for you. Give them enough hours each storm that there happy. Subs make there money in hours...
    Tossing a guy (who allready has a route) one lot will usually mean your stuff gets done last. If the big one hits, which lot would you blow off if your a sub ?
    Subs can work out well, just have a backup plan for them as well.

    There are alot of companys who run allmost all subs. Seems most of the bigger operations here run 100 +subs.
    Just keep your own trucks ready to cover a site if need be. Many of the larger outfits use there own trucks to check all sites, touch up if needed. Cover a site if something happens.

    There are still a few companys who are big who dont use subs, but not to many around here.