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Subcontractor Rates

Discussion in 'Commercial Snow Removal' started by bltp203, Sep 1, 2008.

  1. bltp203

    bltp203 Senior Member
    Messages: 484

    I know this may be a little early to ask, but I was curious on what subcontractors will be asking for rate wise this year. I would also like to hear from those who hire subcontractors to see what you think you will be paying. I can't see anything less then a 20% increase at this point, so someone who made $75 per hour last year would get $90 per hour this year.
     
  2. carl b

    carl b PlowSite.com Addict
    from Ohio
    Messages: 1,330

    we dont pay that well here 50-60 per hour last year . and the subs get paid based on how new there truck is too . i dont sub . so i dont know how that works tho .
     
  3. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    LOL, not from me you will not - you have to suck it up like the rest of the industrry..... less money , more fuel.... if you dont like it, i got lots of other ppl looking for work... - Im kidding , i dont sub, but thats what it might look like
     
  4. Flipper

    Flipper PlowSite.com Addict
    from CT
    Messages: 1,180

    Why would a sub be paid on how new their truck is? I pay based on what the truck or piece of equipment can do. The sub I pay the most actually has the oldest truck. Its an 82 International with a plow, wing and spreader. He's working smarter why should someone else make more just because they have a big new truck payment?

    Doesn't make sense to me.
     
  5. terrapro

    terrapro PlowSite Veteran
    from MI
    Messages: 3,876

    thats crazy. why would you pay different for a newer truck? so if some ******* who never moved a snowflake in his life goes and spends $40G on a truck and plow setup he will make more than someone with an older used truck but has plowed for 30 years?! im sure the big3 guys who got buyouts love you ohioans :dizzy:
     
  6. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    i get a kick out of you guys talking about sub rates at 75- 90/hr

    i gust lost a 65/hr job to someone that bid in the forties
     
  7. bribrius

    bribrius PlowSite.com Addict
    Messages: 1,609

    i dont know why people sub. you can plow drives at over a hundred bucks a hour easy.
     
  8. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,046

    Less stress and lots of hours.
     
  9. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    that wasnt a sub rate
     
  10. tls22

    tls22 PlowSite Veteran
    Messages: 4,263

    Thats why i like working for sum1 else.....less stress and alot of hours. My guy keeps me busy for a while!
     
  11. bribrius

    bribrius PlowSite.com Addict
    Messages: 1,609


    okay. then if the truck averages 150 per/hour i would pay my sub 25 using my truck or 75 using his own.
     
  12. Flipper

    Flipper PlowSite.com Addict
    from CT
    Messages: 1,180

    Here is why the subs I hire are subs. One is a paid fireman and another has a full time job. So they are good for overnights, or when the fireman is off but could not have their own customer base. They will usually plow for me overnight into the morning, go into work a bit late and then help out again at night. Extra money for them and it works out well for me.
     
  13. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    you aint getting 150/hr here
     
  14. bltp203

    bltp203 Senior Member
    Messages: 484

    Flipper totally hit the nail on the head on why most people sub. I don't have the time to deal with creating and maintaining a customer base. I love to plow without the headaches. So pay me a certain amount for a certain amount of hours and I am happy.

    The replies were great, however none of them really answered my question. The $75 per hour was just an example.......even if you only make $50 an hour....will you ask for a 20% increase(or $60) this year?

    Most companies I have spoken to have stated they have no choice but to raise rates to deal with fuel costs alone. Also most are expecting their subs to raise rates, but no one can tell me by how much.
     
  15. bribrius

    bribrius PlowSite.com Addict
    Messages: 1,609

    well in that case i should be a sub too because i work a reg job..
    but instead i try to find fill ins, go without sleep, had the wife out plowing last year a few times.
    i kind of did answer your question.
    i figure a subs rate is based on what the truck makes. if the truck makes the same as last year the sub makes the same as last year. if i was hiring subs and i could get work paying twenty five or thirty percent more then i would pay the subs more because the truck would be making more.

    if the work pays less, the subs make less.
    i could care less what fuel is i want my money reguardless.
    so in answer i would say find someone to sub off that raised his prices this year and still got all his bids if you want a raise..
     
  16. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    we figure 2 gal/hr for fuel so if fuel is 1.50 more than last year that only justifies 3-4/hr raise

    i bet you see guys not raise their price at all i think competition will be tougher than ever
     
  17. Flipper

    Flipper PlowSite.com Addict
    from CT
    Messages: 1,180

    To answer you I am probably going up around 7% on my subs. I won't have everything finalized in terms of accounts until Oct so that will factor in.
     
  18. Peterbilt

    Peterbilt Senior Member
    from IA.
    Messages: 745

    Cretebaby, Where are you at in East Iowa?

    In the $40s thats just desperate and stupid.

    J.
     
  19. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    peterbilt, tristate area about a good hour from you
     
  20. Peterbilt

    Peterbilt Senior Member
    from IA.
    Messages: 745

    Got to check out the competition. lol

    $40? That crap better not start happening over here, but who knows.

    J.