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Sub Charge

Discussion in 'Bidding & Estimating' started by 30milepace, Jan 10, 2008.

  1. 30milepace

    30milepace Junior Member
    from Chicago
    Messages: 13

    I currently have no jobs. I am looking to sub contract myself out what is the going rate. I have a new 8' plow on a new truck. I am experienced I have had plow on and off for twenty years.
  2. Dwan

    Dwan Senior Member
    Messages: 879

    Charge enough to cover your expenses and make a profit.
  3. 30milepace

    30milepace Junior Member
    from Chicago
    Messages: 13

    What does one charge up there near the pole?
  4. Dwan

    Dwan Senior Member
    Messages: 879

    For sub work about twice overhead costs.
    For contracts three times overhead

    overhead = anything you can write off with the IRS.

    To be in the business (any business) one has to know what it costs to run that business.
    You will find pricing is a lot different everyware.
    if it snows 20 plowable events then you can spread your costs over it all but if it only snows 1 event then you must make enough to cover all your plow related expences in 1 day.

    In business IRS wants you to show a profit within 3 years of startup so we will spread this out over that time

    Truck payment (lease or buy) *******x 3 years
    insurance ******* x 3 years
    Truck maintenance Budget over 3 years
    Book keeping again over 3 years. (or are you willing to spend several days in the office for free)
    Fuel today about $100 a day when plowing in 3 years I am willing to bet it will be $150 easy.
    Business License here $100 a year X 3 years
    Do you have a shop to work out of which has utilites, Han tools to repair truck/plow
    Advertising, Phone bill, That computer you are using including software and internet connection. Fax machine, signs on your truck (if it is a 1 ton or over then those DOT# you have to put on the side,

    That is to just list a few.

    Now divide that over the expected plowable events for the next 3 years then add what you expect to make as a wage, Now do you also want to make a profit? Profit is not your wage!! Profit is what you should be making to because you are in business for your self otherwise all you have is a job and should be working for someone else.
    Profit should be able to be put in the bank, or reinvested in your co. or just spent on anything you want without cutting your self short on the business overhead.

    I hope this helps you in figuring out what you need to run a business. (any business)
    I would suggest a course in business at a local CC or Tech school. Money well spent before startup and you can write it off and prorate it over the next 3 years.

    or you could find out what the guy down the block charges and do it for the same hoping he has done his homework.
    I see plowers come and go most lasting 2 to 3 years before they go belly up. and it is all due to not charging enough to keep the CO. alive. 90% of all business that fail fail due to mis management. They can do the work just don't know how to price or handle the money.
    There is nothing wrong with asking here about plows, parts, weather, etc. But I would be willing to bet that of the 26,000 + members less then 500 make a good living plowing because they don't know how to run a business. (ok go ahead and flame me)
    Contact a CPA to find out what you need to know for the book keeping it would be money well spent. I am not saying you need one forever but for startup it would help.
    If you need to talk PM me for my phone# or go to my web site for it. call anytime between 8:AM and 7:pm Alaska time.

    Pricing here falls anyware between $45/hr to $200/hr. The $45 wont last a year.
  5. stroker79

    stroker79 2000 Club Member
    Messages: 2,802

    about $50-$65 is the general range. some will go little higher. wherabouts are you in the chicagoland area?
  6. Gicon

    Gicon Senior Member
    from MA
    Messages: 989

    Whatever your town / state is paying for your particular vehicle
  7. MileHigh

    MileHigh PlowSite.com Addict
    Messages: 1,827

    The going rate in the denver metro area for sub contractors with there own truck, and insurance, is anywhere from 55-100 bucks an hour. Depending on truck, plow, experience, etc. I get paid a flat rate for my truck time, then extra for my 2nd man. I pay my 2nd man 25-30 bucks an hour depending on what he is doing from the second we get called out, till when we finish up our last job.
  8. chs1993

    chs1993 Senior Member
    Messages: 297

    In maryland subs range from 65-95 an hour but you provide your own liability insurance.
  9. ahoron

    ahoron Senior Member
    from here
    Messages: 422

    $65/hr cash is what I make in Chicago and southwest burbs
  10. cornbinder

    cornbinder Senior Member
    Messages: 347

    around here i can get subs with their own truck for around $40-$45 hr. kinda cheap from what the rest of the plow site guys are saying. it just depends on the area i guess.
  11. svelasquez

    svelasquez Member
    Messages: 63

    Well said! Very lucid.:salute: