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What to pay?

Discussion in 'Commercial Snow Removal' started by Precedence, Sep 20, 2010.

  1. Precedence

    Precedence Senior Member
    Messages: 107

    I am considering having a guy i know sub contract to do all my sidewalks for me with his ATV (250cc i think) which has a 4' plow. The problem is i have no idea what or how to pay him. Normally i pay my subs with trucks around $50/hr for on-site time only (depending on level of experience). However if he's using an ATV he might only be on-site for 5-10 min so i was thinking of maybe paying him commission on the sidewalk portion of the contract.

    Anyway what are your thoughts. Hourly and if so how much? Or commission and at what percentage?
  2. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    Do you have to salt or de-ice any of your side walks? If not then pay him 75% of your sidewalk contracts if he has them done on time and in a professional manor. You might even consider a 5% bonus at the end of the season if everything is done right. You have to admit that 20% at the end of the season is pure profit, and who can complain about that?
  3. snowtech

    snowtech Member
    Messages: 66

    i agree with rc. i try to pay commission for everything my subs do and it has worked out great for me and for them. I would give it some thought
  4. Precedence

    Precedence Senior Member
    Messages: 107

    All the sidewalks have to be salted as well as plowed.

    The only thing I'm leery of with commission is that the subs might run through everything to quickly in order to maximize there profits and that might mean things getting done to sloppily. Before starting my own company i worked for a place that paid based on commission and it created some problems. It could be that my view of a commission system is just tainted by my experience.
  5. JDiepstra

    JDiepstra PlowSite.com Addict
    Messages: 1,780

    Then set it up where the pay deecreases when their are complaints about the job.
  6. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    Let the sub know upfront whats in it for him if he does it right and makes you money. I mean really thats the key to the whole thing. How much money can he make, and is he going to do it right and make you money as well. I have found that in business honesty and being up front is the best way to go.