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What do you think?

Discussion in 'Business Fundamentals' started by SNOMACHINE, Jan 6, 2013.

  1. SNOMACHINE

    SNOMACHINE Senior Member
    Messages: 163

    We've been subbing to this company for our second season at the same location. This location is about 650,000 square feet in total. I use a backhoe that they rent and there pusher on it. They pay for bulk salt and calcium bags that they have on site. I have a 50 hp utility tractor that I keep there. And have a total of 5 employees including me there during an event. Me in my truck, 1 to run the tractor, 1 to run the backhoe, and 2 for sidewalks. They also pay for all fuel. This account is seasonal. They pay me $7000 per month for 5 months = $35,000 per season. All I pay is labor. I know it's a really good deal. But now they told me that as of January 1st there going to pay me hourly. Which the hourly rates are as follows. And there is no contract. Just verbal!

    Truck $80 per hour
    Tractor $75 per hour
    Labor $30 per hour

    What would you do?
     
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Depends, works out to about 250 an hr so you need to put in at least 30 hr a month with your crew to make the 7k up. Put it in writing.
     
  3. merrimacmill

    merrimacmill PlowSite.com Addict
    from MA
    Messages: 1,822

    That sounds like such an odd scenario to me.. If they are responsible to rent equipment, place pushers, stock deicing materials, and even buy fuel, why would they not just hire their own people to run everything and pay you hourly for your tractor or truck only? It sounds like they are 90% there to self performing the lot short of getting some low level hand labor in there.
     
  4. ALC-GregH

    ALC-GregH PlowSite.com Addict
    from pa
    Messages: 1,132

    That's why they want to go hourly. So if it doesn't snow, they don't have to pay. It will benefit them more which makes sense.
     
  5. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    In all honesty, you have made a killing off of them for the past 2 seasons. Finish this season out with the new terms, and move on. The money train is leaving the station, all you can do is wave good bye at this point. I am not trying to sound like an a$$, just stating the facts. It's going to be tough to replace that kind of money every month gaurnteed, but you can see it from thier side, so you have to admit it was a good run, and forget about it.
     
  6. quigleysiding

    quigleysiding PlowSite.com Addict
    Messages: 1,098

    Maybe you will get lucky and it will snow every day for the rest of the season and they will have to re-think the deal. Thats all you can hope for.
     
  7. trustyrusty

    trustyrusty Senior Member
    Messages: 174

    And next time you stumble across a veritable pot of gold, get something in writing each season so the rug can't get jerked mid-season like this.
     
  8. SNOMACHINE

    SNOMACHINE Senior Member
    Messages: 163

    Rc2505 where are you located in northwest Ohio?