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Paying subs a fixed cost

Discussion in 'Commercial Snow Removal' started by DCS MN, Aug 21, 2010.

  1. DCS MN

    DCS MN Senior Member
    Messages: 169

    Does anyone pay their subs on a fixed cost basis rather than hourly?
    I am trying to eliminate variables when it comes to paying my subs. I would much rather pay them a per time fee, how I am being paid, rather than argueing about hours.

    Is this something anybody does?
    Good or bad expieriances?
    Pros/Cons?

    I feel it frees me up from babysitting and my subs are all good guys but there are always a few time where I know I have been paying extra.
     
  2. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,382

    A guy I know pays like that. From what I heard his 3 guys didnt mind it. As long as you dont wait to call them out until there is 6" of wet heavy snow it could be profitable for them, especially on easy nights. As far as keeping hours straight why not just have them hand you their time sheets after your done plowing. Its a PITA no matter what you do sometimes. I got so sick of my couple subs and employees not turning in time sheets until the next day or two that I started handing them their checks a few days later. When they b!tched I just told them maybe you should have handed your time sheet in on time. They quickly learned. All you can do is come to a fair number and try it. I just think if your that F'ing stupid to try to screw me on hours or goof up a simple time sheet, I dont want ya.
     
  3. viper881

    viper881 Senior Member
    Messages: 459

    Just agree on what they are going to get paid on a certain amount of snow or they will complain
     
  4. MIDTOWNPC

    MIDTOWNPC PlowSite Veteran
    Messages: 4,452

    you should know how long each of their routes take and depending on the storm know if they are being honest. if thats the problem.

    I dont have subs but I pay my workers that run my equipment a seasonal price. They are on call like I am for the winter. It snows, we go

    You could do something like 5 hour minimum and then so much after ? or so many hours during the season.
     
  5. DCS MN

    DCS MN Senior Member
    Messages: 169

    My plan is to agree on a fair price based on the amount of snow. Condition of snow will not effect the price, only amounts. I figure the easy pushes usually far out way the heavy wet ones. This will make my future bidding and bookkeeping much easier and I know how much I have the ability to profit each storm. Then the only variable is the guys running my equipment, but I keep these peices on my hourly lots.
     
  6. wizardsr

    wizardsr PlowSite.com Addict
    Messages: 1,553

    I pay per time for both my plow and sidewalk subs. It's the same price whether it's 1" or 8", over 8 it switches to hourly, but we never ever let them wait that long. On the easy clippers, they make out quite well, on the heavy wet snows, they get to work for their money.

    I've only had one guy (sidewalk sub) complain during a heavy event. I showed him the log I keep that converts their per time into an hourly rate based on how long it took him. When he realized how well he had made out on the easy ones, he got back to work and didn't complain again.

    I switched to this method 5 years ago after getting sick of having guys milk the clock. It's worked out better than I had hoped, the workers make more money per hour, work faster since there's no incentive to screw around, and it makes it far easier for me to budget. This is only for subs though, employees in my trucks get shuffled around far too much to use this pay method...
     
  7. Weeded!

    Weeded! Member
    Messages: 75

    I pay them how i get paid

    I pay my subs the same way I get paid. If i get hourly pay on a site then they get paid hourly. If I get a fixed rate then so do they. That way we make money together. Otherwise you may lose money on a site while your subs make more than you get paid.

    It works out well and in the end your subs are happy if you treat them fairly and they make money. I have very open communication with my subs and I am happy to discuss my contracts with them.
     
  8. snocrete

    snocrete Banned
    Messages: 2,862

    This is similar to what i do, and has worked very well....but I do still have a couple subs that work by the hour. I dont like working by the hour (even though I still have some accounts set up that way :mad:)....and most guys that are hard workers, that have experienced a pay system like this, dont like to work by the hour either. If done right, its a win for all parties involved.
     
  9. DCS MN

    DCS MN Senior Member
    Messages: 169

    I appreciate the feedback, I was up one night thinking about it saying if I get paid per time, why should my subs be able to get paid on a hourly basis???

    I am happy to see this is not a hail mary pass. I am going to integrate this into my business this season.
    Thanks again
    Brad
     
  10. JMS

    JMS Member
    Messages: 97

    Hey midtown, I am very interested in how you pay your guys per season, could you PM me with how you work that out.

    Thanks brother
     
  11. Plowtoy

    Plowtoy Senior Member
    Messages: 929

     
  12. cet

    cet PlowSite Fanatic
    Messages: 7,202

    On a flat fee they are going to fly. Only problem is the quality of work. If you are going to do it make sure you have an hourly rate for you if you have to go back and fix their mistakes and make sure it is high with a 1 hour minimum. What happens if they break some time in the night. Who is going to finish and how much are each of the guys making. It is a good system but there are some issues that need to be figured out before you start.