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Over 300+ subcontractors ?

Discussion in 'Commercial Snow Removal' started by grandview, Dec 12, 2006.

  1. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I get Snow Magazine and Snow Business and it always amazes me when I read about some of these companies with all these subs. I'm sure they all started small but some say they were founded in 2000,01,02 ,03. It seems like the don't make much with all these plows out there. Any thoughts.
     
  2. Snoflo

    Snoflo Member
    Messages: 57

    The money in snow and ice management is all in the ice management part very little in snow removal. Ice management accounts for 75% of overall income or profits for a snow season.
     
  3. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Sorry, I forgot to mention for having 300+ subs they did 3 Million last year I don't think it's a lot .
     
  4. dlcs

    dlcs 2000 Club Member
    Messages: 2,149

    yeah and how many of those subs got screwed out of their money or was paid months late? Seems to me you had better have lots of working capital to be able to pay those subs on time because we all know that alot of commercial accounts pay late. You wouldn't want too many of those subs stop work in the middle of the winter cause they haven't been paid. I'm seeing this more and more around here. Some big shot from Chicago sucks up all of a certain chain of banks or fast food joints and expects me to plow for them and wait for him to pay me cause the chain hasn't paid him.
     
  5. LINY Rob

    LINY Rob Senior Member
    Messages: 478

    I do un-releated work for many places, waiting 30-60, even 90 days for payment is normal.
    Why should plowing be any different?


    Try doing work for your local police, coast guard, armed forces, etc....
     
  6. dlcs

    dlcs 2000 Club Member
    Messages: 2,149



    I have no problem waiting 30 days thats my terms. But to wait 60-90 days, no way. My point is about all these large contractors using subs, if they don't get paid, you will not get paid, cause alot of them do not have the capital.

    I do alot of work for our city and they pay within 2 weeks of recieving the invoice.
     
  7. LINY Rob

    LINY Rob Senior Member
    Messages: 478

    pay within 2 weeks if you had a pre-approval maybe, I would love to see payment in 2 weeks for government work.

    I know what your saying, and thats why I would rather plow for a small company who cares about you
     
  8. Snoflo

    Snoflo Member
    Messages: 57

    We pay our subs bi-weekly and in five years have never paid a sub late. Wee see to it that our working capital is enough at the begining of the season and all but one of our large commercial have paid on time within the net 45.
     
  9. dlcs

    dlcs 2000 Club Member
    Messages: 2,149


    I'm sure you and alot of contractors do pay on time and take care of their subs. By no means am I including everyone. But I've seen several that don't and these are the companies that have popped up within the last few years and now all of a sudden have hundreds of subs working in a 200 mile + radius. I didn't mean to throw a blanket statement about all large plowing contractors.
     
  10. LINY Rob

    LINY Rob Senior Member
    Messages: 478

    I cant imagine the headaches of paying all those subs AND collecting money from the customers:dizzy:
     
  11. dlcs

    dlcs 2000 Club Member
    Messages: 2,149


    I don't know if you would call it pre aproval or not. But its contracted monthly service that doesn't always total the same amount each month. I'm surprised they pay that quick too.
     
  12. LINY Rob

    LINY Rob Senior Member
    Messages: 478

    contract work is better im sure.

    Im talking putting in bids, then getting the job- then the bad part when they add extra work.

    "im sorry, you were not authorized for that addional work and will have to submit a bid, get approved by the board, etc, etc...":realmad:
     
  13. dlcs

    dlcs 2000 Club Member
    Messages: 2,149


    I see what you mean now, I haven't had that problem yet.:dizzy:
     
  14. LINY Rob

    LINY Rob Senior Member
    Messages: 478

    Im waiting since JUNE for the 2nd half of payment for a local government department:gunsfiring:
     
  15. Metro Lawn

    Metro Lawn PlowSite.com Addict
    Messages: 1,302

    This is very true. I noticed one of the bigger companies here that has about 200 subs. They only have about 30 of thier own plow trucks but over 60 salt trucks. Makes ya think.
     
  16. Snoflo

    Snoflo Member
    Messages: 57

    What us smaller companies need to start doing is combining forces into one large corporate entity and come up with a uniform price strucure....talk about dominating the market...keep fast friendly service with large company that knows the industry and knows how to take care of the subs....lol just a thought
     
  17. Snoflo

    Snoflo Member
    Messages: 57

    Just to note I was just providing some info and in no way took offense to the comments. I am well aware of what some contracts do for payment and how the larger companies like to play the game with the subs....They better rethink their strategies and become better money managers or before they know it the "Little guy" may become the Big Guy and run em outta town.
     
  18. tjlands

    tjlands Senior Member
    Messages: 579

    Have to keep your subs happy! No matter what.

    My subs get paid first. 48 hours after the storm every time.

    They are representing you and you want them to show up on a phone call at 2am
    and do professional work. You better pay them good and quick. I do

    As far as Government or Muni. work 45 days min as high as 90. But you do get paid.
     
  19. Superior L & L

    Superior L & L PlowSite Veteran
    from MI
    Messages: 3,039

    These days it feels like everyone we do work for pays at 90 days. Everyone is making money or doing something else with your money before they pay you. I think paying two days after the storm is a little over kill. It would feel like you just got done dealing with a storm then you have to deal with checking paperwork and another storm will creep up on you. Send me a bill on the 1st of the month and a check will be in your hands on the 15th. That way they get one nice check a month instead of 2 or 3 little ones.
     
  20. LINY Rob

    LINY Rob Senior Member
    Messages: 478



    isnt that kind of what THEY did?