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Sub contracting residential?

Discussion in 'Commercial Snow Removal' started by NickSnow&Mow, Jan 16, 2015.

  1. NickSnow&Mow

    NickSnow&Mow Senior Member
    Messages: 646

    Hey guys, Sorry I've been making so many threads lately but I have a serious question here. So a fellow contractor pulled me over to talk to me today and he's wondering if I could sub a few driveways for him. I don't know how much he's paying or exactly the number of driveways but I'm wondering if subbing resi is even worth the time. It would also really help on route density. Any input would be appreciated. Thanks, Nick
     
  2. xgiovannix12

    xgiovannix12 PlowSite.com Addict
    Messages: 1,419

    I would do it if the accounts were close to my route for the right price.
     
  3. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,468

    Without knowing the pay and the number of drives, there proximity and your operating cost
    We or you wouldn't know if it is profitable or not
     
  4. snowplower1

    snowplower1 Senior Member
    Messages: 773

    First i would consiDer whether they are in your area where your do work already
    then go look at them and price it at what you would if you were dealing directly with the owner. That way you are still profiting as normal. Then decode whether or not it's gonna be more of a pain than anything
     
  5. BC Handyman

    BC Handyman PlowSite.com Addict
    Messages: 1,847

    How I got more into snow, was doing one of my handfull of places I had, when another contractor asked me if I wanted to do a few places of his, we agreed on price and almost a decade later I'm still doing a few of his places, been a great relationship.
     
  6. NickSnow&Mow

    NickSnow&Mow Senior Member
    Messages: 646

    I don't know the exact properties but I know that they're all in my route/area and I can choose the ones I want. Sounds like he's overwhelmed and just wants to get rid of some of them. I would think it will be easier to collect one check from him than multiple payents from customers so I don't think it'll be much more of a hassle.
     
  7. Neige

    Neige Sponsor
    Messages: 2,197

    Nick what is important to know is he a direct competitor doing residential snow, or does he do lots of commercial and these clients are the owners of the commercial places he does. If he is a direct competitor and he has taken on too much, it may be better to let him to continue to service his own clients with difficulty and chances are you may pick up some of them yourself in the future.
    If he is not a direct competitor then by all means if you can handle the extra clients in your service area make the extra cash. Taking on new clients in an area you already service can be very beneficial giving you not only better route density but also greater exposure to new clients. If asked I would not sign a non compete clause, you do not want to put yourself in a position where you cannot go after clients, in your service area.
     
  8. NickSnow&Mow

    NickSnow&Mow Senior Member
    Messages: 646

    Yes. We talked about this last night that if we do them this year there is a good chance that we'll pick those customers up our selves next year. We're not in real need of anymore work and definetly won't be signing any none compete contracts by I think I could handle a few more. I think he is a direct competitor though. He has 64 customers he does with a smaller tractor than ours and says he doesn't want them all. I know that the long term plan is definetly not sub contracting but this could be away to maybe get some more customers/route density for next year. So are you saying definetly don't work with a direct competitor because I think he only does residential? I've never worked with another contractor so I wouldn't know. If you think it's the wrong move I won't do it because We definetly aren't short on customers right now. By the way did you get my email? I sent you a link to a video and some addresses. Thanks a lot, Nick
     
    Last edited: Jan 17, 2015
  9. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,468

    Or he could have you sign a noncompete claus, most contractors will have their subs signed one.
    Then you can't go after them or take them on if they call you.
     
  10. Neige

    Neige Sponsor
    Messages: 2,197

    Nick go with your gut on this one. I have done exchanges in the past with direct competitors, and it worked out well for us. Here is one example that at first was not so good. This one guy did both snow and lawn, he called and asked if we could do 8 clients in an area where he did not service but had clients signed year round. We agreed and it worked out well. The next year he advertised he was doing snow in this area at lower prices than ours. He managed to get 7 more clients for a total of 15, far less then what he expected. He called us up again and asked if we could do these 15 clients. We refused on the bases that he was actively going after our clients. Well several storms later, he called back and offered all his clients in this area with an agreement to no longer solicit clients in this area. He paid us our price in full and now they all sign contracts with us directly. Hope this helps
    Yes I got the email, just have not had time to respond.
     
  11. NickSnow&Mow

    NickSnow&Mow Senior Member
    Messages: 646

    Oh Ok. I will forsure not do it if he wants a non compete agreement. Not going to get myself into that mess especially in the area that I'm trying to push the competition out of and take over.
     
  12. NickSnow&Mow

    NickSnow&Mow Senior Member
    Messages: 646

    We're going to really have to think about this one. He wants to meet up and talk next week. I will only consider it if there is no non compete agreement, We're comfortable with the price, and we only have to take on ones that are right in our area. Going to be a tough decision but we'll see. Like You said it's more of a way to get the name out there and possibly pick up a few more for next year than anything. I know we don't want to have a middle man forever but it could be a starting point. I'll let you know what happens. Take your time on that email I just didn't know if you got it or not.
     
  13. lawnlandscape

    lawnlandscape Senior Member
    Messages: 374

    1) We make more (hourly) on our residential routes than we do on anything else. Because its done, move to the next, done, move to the next.....

    2) As a company we do not subcontract anything anymore. From others or to others. We have found it to be nothing but problems.

    3) Subcontracting is one word. :)
     
  14. 1olddogtwo

    1olddogtwo PlowSite Fanatic
    Messages: 11,503

    Even if he wants one, sign it.

    15 years olds can't be held to it,




    Well maybe in Canada.....
     
  15. peteo1

    peteo1 PlowSite.com Addict
    Messages: 1,659

    No non compete and accounts you can cherry pick in your area.....I'd do it as long as the pay was right
     
  16. leolkfrm

    leolkfrm PlowSite.com Addict
    Messages: 1,403

    why not try it for a month?...if it works then someday you may need a hand because of unfore seen reason and he would most likely help
     
  17. NickSnow&Mow

    NickSnow&Mow Senior Member
    Messages: 646

    Good idea I'll talk to him about that.
     
  18. NickSnow&Mow

    NickSnow&Mow Senior Member
    Messages: 646

    Alright final question are subcontractors usually paid by the hour or by the job? If he wants to go hourly I would need at least $125/hr which sounds like a big number.
     
  19. NickSnow&Mow

    NickSnow&Mow Senior Member
    Messages: 646

    Haha not gonna pull that on him. I doubt he wants one signed anyways, I think he could care less if I took some of his customers.
     
  20. lawnlandscape

    lawnlandscape Senior Member
    Messages: 374

    Did I just read that? $125 an hour for 3 trucks I hope? Or biggest loader and snow pusher on the face of the planet?