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$ Offered To Sub-Contract 40 Residentials, ???

Discussion in 'Commercial Snow Removal' started by Going Commercial, Dec 20, 2008.

  1. Going Commercial

    Going Commercial Member
    Messages: 56

    Opinions Please! I just got a call from a guy who offered me $4500 to plow 40 of his residential drives from now (12/20/08) thru end of season in April, using my truck. Flat price, no gas or other expense help. I am currently plowing 40 residentials for a friend who pays me $20 per hr using his truck and all expenses are his. No hard feelings between my friend and me if I leave to go work for someone else. It takes me an average of 5 hrs right now to plow the 40 for my friend when we get 3-5 inches. Yesterday we got a good storm of 10 inches between 8am @ 3pm and it took me 7 hrs to do the route. I put a total of 18 miles on the truck each time out. Both guys work in the same area and the routes are basicly the same for mileage and in size. They are getting $275 to $300 per contract in this area. Yearly snow fall total is 100 inches, trigger depth is 3 inches. They figure 25 plows on avg for their contracts. Is $4500 enough or is it too little. I have a 2005 chevy 2500 hd with a brand new v-plow and have the room to take this on. Thanks !
     
  2. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    Seriously, you have to be joking to ask this question. On the high side at 300 per drive per season, this guy is getting $12,000 and is willing to pay you $4,500 of it? Why would you even consider this? tell him $10,000 and it's a done deal. He is going to profit almost 60% and do exactly none of the work. Come on grow a pair and ask for a reasonable wage.
     
  3. Govbradst555

    Govbradst555 Member
    Messages: 56

    I agree u need to make more than that.
     
  4. Going Commercial

    Going Commercial Member
    Messages: 56

    I told him no from the get go but I was thinking $6500-7000. I am taking into consideration that the first 2 months (Nov @ Dec ) were already covered by him. He only had to go out 5 times so far but they are his contracts not mine. I know he expects me to counter offer. He is looking for a cash deal with me. I am pretty sure he is paying taxes on his end, but he is a fast talker.
     
  5. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    by no means am I trying to tell you what to do, but if it were me, I would counter with the $10,000 and let him come down from there. I mean if he has gone out 5 times so far then I would take that into consideration. If all he is going to do is collect, and bill then his time in my opinion is worth about 25% of the contract max. Now if he wants to offer up expenses, or let you use his truck the $4500 isn't so bad. Just be ready to hold your ground. Fast talkers are not a good thing if your not standing ready for it. Figure out a number that is worth it to you, and don't drop 1 penny under that.
     
  6. Going Commercial

    Going Commercial Member
    Messages: 56

    He would not even consider $10,000 made clear by him from the start. He expects me to counter offer. Believe it or not this guy used to work for me doing lawn care and then went on his own, point is that I know him and I am ready. He is a hell of a salesman to the un-educated. As I stated I was thinking $6500 - $7000 also because I did not stake the drives and I will not be responsible for sod repair if needed.
     
  7. Niteman9

    Niteman9 Senior Member
    Messages: 165

    I wouldn't waste my time. Either way I figure it doesn't add up.

    Best case

    20 pushes 5 hours = 100 hours which is $45 per hour.

    20 pushes 40 drives = 800 drives total which is $5.62 Per drive.

    If it snows more the worse it gets. I think he feels it going to be a heavy snow year and is trying to have you take the hit......I would run.

    I sub two trucks and get $65.00 per hour each for each and every hour. From the time I check into the shop until I check out.
     
  8. Govbradst555

    Govbradst555 Member
    Messages: 56

    Hey niteman lets make it 3 trucks u pay me 55 an hour make 10 an hr for yourself
     
  9. eshskis

    eshskis Senior Member
    from 4
    Messages: 138

    No man, this is no deal pass on it without a nano second of thought
     
  10. MileHigh

    MileHigh PlowSite.com Addict
    Messages: 1,827

    Doesn't it snow a sh!$ton in buffalo?

    You'll have to plow those drives a crap ton man.

    Go Broncos! there gonna kill the Bills today...lol
     
  11. yardsmith

    yardsmith Senior Member
    Messages: 248

    20 bucks an hour-shoot I'll hire you. I make $20 MINIMUM on a driveway in 3 minutes, & have 57 minutes left to go do more- raise your prices
     
  12. DSLL

    DSLL Senior Member
    Messages: 136

    You must not know about beast mode:gunsfiring:.



    275-300, a season, is the going rate here in Buffalo
     
  13. MileHigh

    MileHigh PlowSite.com Addict
    Messages: 1,827

    LOL...we'll see about beast mode here real quick..:angry:
     
  14. dux5977

    dux5977 Junior Member
    Messages: 8

    How/where would i find the ave push per season???

    i have a 2 plows now and looking for a few jobs to keep me busy during this winter ....Saginaw, Michigan (anyone in the area?).....I do, do this for a MDOT I know a totally different animal plowing on your own. I'm thinking $30/push (only residential this winter) .....but i would also like to be able to charge seasonal (adjusted for remaining weeks, 80% left sound good?) just to get my feet wet for next year. Getting tired of all the snow we're getting n doing all these freebies. Newbie looking for advice thanks in advance for any help
     
  15. Boss Man WNY

    Boss Man WNY Junior Member
    from WNY
    Messages: 10

    if his name is mike siteski keep away he will not pay you!