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Plowing as a sub for monthly rate?

Discussion in 'Commercial Snow Removal' started by NW Snow Removal, Dec 29, 2009.

  1. NW Snow Removal

    NW Snow Removal Senior Member
    Messages: 533

    One of our competitors is now paying drivers monthly to plow instead of hourly or per lot. I guess this is how they got our local walmart. Their drivers get 3 k per month and have to plow or salt whenever they are called with no restrictions on length of shift just a property list they are responsible for clearing. I am getting calls daily from their drivers begging for work as they are now basically hired snow slaves. I can't believe a sub would accept monthly payments and subject themselves to working for such long hours. I guess 12k per winter is a lot to some people but the hours add up here in chicago and our guys regularly work 150+ hours per season so I would feel terrible paying them only 12k for that much work. some of our subs have already made upwards of 6k this winter. top 10 snowiest december in 125 years. What do you guys think of this method?
     
    Last edited: Dec 29, 2009
  2. hydro_37

    hydro_37 PlowSite Veteran
    from iowa
    Messages: 3,790

    I bet the guys in the southern states would love it.
    Last year we worked our a88 off in Dec and got very little snow till Feb so it would have worked out well for me.
     
  3. tinffx

    tinffx Member
    Messages: 68

    I would do it but would probably want more than that. its the same as having seasonal contracts really. Not a bad idea.
     
  4. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,046

    My subs get paid seasonaly. They complain a little on a bad winter but they don't give me a refund on a light winter. Most people love the regular income. Personally I think 12k for a pickup guaranteed in a normal Chicago winter is fair. JMO
     
  5. NW Snow Removal

    NW Snow Removal Senior Member
    Messages: 533

    if this method is acceptable I may start bidding seasonal jobs a bit more aggressively. We usually will not take a customer seasonally without a cap on snow(unless they go with our first price, which accounts for a very heavy winter).
     
  6. AiRhed

    AiRhed Senior Member
    Messages: 401

    Please no.....
     
  7. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    How many times and snowfall for the season is it?
     
  8. NW Snow Removal

    NW Snow Removal Senior Member
    Messages: 533

    about 20 plows and 40 saltings.
     
  9. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    So according to your figures ,it works out to 80 an hour they are making.
     
  10. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,046

    Just because a sub is seasonal doesn't mean you can take advantage of the situation. They know what there plowing when they sign up for it. If I take the 10 year avg seasonals are way ahead of the game. Plus they have money to make the monthlies all winter.
     
  11. NW Snow Removal

    NW Snow Removal Senior Member
    Messages: 533

    how long are you assuming their shift are? Because I know this guy is packing 6-8 hour plowing shifts and 3-4 hour salting shifts. so they will be working roughly 260 hours and getting 12k. about 46/hour. and they have to pay a shoveler to ride on the plowing shifts for the sidewalks. edit>>my guys get 4-5 hour plowing routes and 2 hour salting routes.
     
    Last edited: Dec 30, 2009
  12. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    They pay for the shoveler? I think you should if you want stuff shoveled.
     
  13. Arloslawn

    Arloslawn Member
    from Indiana
    Messages: 84

    I definetly wouldnt mind, the only issue would be salt. Do the guys pay for their own salt or is the company providing it for them.
     
  14. NW Snow Removal

    NW Snow Removal Senior Member
    Messages: 533

    the salt is provided , but yes they have to take a shovel guy. edit>> I hate the idea personally. I like to pay per occurrence so then everything is precise.
     
    Last edited: Dec 30, 2009
  15. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Side note. They all have their own insurance ,
     
  16. NW Snow Removal

    NW Snow Removal Senior Member
    Messages: 533

    yes workers comp and general liability. so now you're starting to see how bad for drivers this practice is.
     
  17. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Well if your a sub you should have it either way.
     
  18. Pristine PM ltd

    Pristine PM ltd PlowSite Veteran
    Messages: 3,794

    We have 7 companies and 9 trucks with this method. Some of them may only have 1 property with us, some have 6 or 10. Some are salt included, some buy salt on our account, some charge us per salting. It works very well for us. We are not greedy and have most of these properties 12-36 months. We try and make a bit during the winter on them and make up for the subbing in the summer.

    I believe it to be quite fair and a lot less stress. I know many guys who use brokers, but I am fairly sure that with our normally not terrible winters, they do better with this method. For us it is also a budgeting thing. There is less risk.