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Subcontractor rates HELP!

Discussion in 'Business Fundamentals' started by joeco129, Nov 17, 2011.

  1. joeco129

    joeco129 Senior Member
    Messages: 105

    I'm meeting with a guy tomorrow who owns a very large landscaping/plowing company. He is interested in hiring me as a sub and I am curious to see what I should be getting. I don't want to give it away and I know he does very well.

    My equipment he is interested in for different properety locations -

    2007 F550 Subercab Flatbed with Brand new Fisher 9.5ft Extreme V - Stainless
    Brand New Fisher Poly Caster 1.5yd

    2011 Takeuchi TL230 Compact Track Loader (he will supply pusher box only)

    2005 International 4200 6 wheel Dump - For hauling snow out only, no plow on this truck

    I am also fully insured/bonded and will provide him a COI. Any info with rates I should be getting is much appreciated.

    Last edited: Nov 17, 2011
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Get his rates and tell him you'll get back to him.
  3. joeco129

    joeco129 Senior Member
    Messages: 105

    I can do that, no prob... Just wanted to get an idea of where rates should be for different equipment. Thank...
  4. ponyboy

    ponyboy Senior Member
    Messages: 934

    Who is using your equipment, who pay the guys using the equipment, who's insurance is being used at the job sites, who pays fuel who pays for repairs
    My thoughts format is goes for around me
    550 with salter from 75-105 an hour I say the higher Sid of $100 hour btw when do u start getting paid when you leave your house or arrive at his location
    Track loader your tracks will be getting beat up on the black top hope for $125 hour probally more along $75-$100
    Dump truck I have go for $400 for the day
    I hope your area is better than mine I don't think I would use the track loader with the price of replacement track
    I would like to see what he offers you
  5. peterng

    peterng Senior Member
    Messages: 249

    You should know your equipment rates. Your location plays into it a lot. Your level of service dictates what you are able to command. DOT tandem rates are $65/hr here, that varies considerably by region.

    I would like to think I can make $30/hr at the end of the year which is a dream. Theres a lot of time spent loving what I do that blows that all to hell.

    For around here there is a 30 year average of 18 events per year at a 2" threshold. For seasonal I estimate the average service time for handwork and plowing and multiply by 15 for a 5 days a week 8-5 operation. That gives me average yearly billable time. I multiply by $105 for truck and driver and $85 for handwork. Thats the minimum I need to do it for me.

    I'll often come out the most expensive of 5 bidders and get the job (I only have 5 commercial properties, no dways) but I've only bid on 6 jobs ever. I have 2 seasonal and 5 hourly commercial properties. Keep unbelievably detailed records of materials, time spent doing what and input it into a spreadsheet. The data you'll gather for your operation makes everything easy for bidding after that. Where your money is coming from and what you spend on which aspect of the operation becomes evident as well.

    That with great references and a 13 page quote sheet with a lawyer reviewed contract sample lets you set a fair rate for yourself and instills a lot of confidence with owners.

    I choose to seek out high level of service contracts and follow through. I'm doing this because I enjoy it, not for a headache.

    Sorry for the long ramble but that's how I figure out how much money my gear can make. Hard costs are easy to measure, how much the units make is another matter.
    Good luck,
  6. joeco129

    joeco129 Senior Member
    Messages: 105

    It would just be me on my equipment and trucks. I pay fuel and repairs and would start getting paid from the phone call to go out.
  7. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Guys around here used to 75.00 a truck load to haul snow out.
  8. joeco129

    joeco129 Senior Member
    Messages: 105

    He offered $75/hr for my F550 and $75/hr for the track loader with his pusher box. I think it's a bit low...

    Your thoughts?
  9. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    If its sitting in your yard doing nothing. Besides you can only use one or the other. Besides,that's the opening offer,counter time.
  10. NickT

    NickT Senior Member
    Messages: 707