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What would you consider yourseld to get paid an hour?????

Discussion in 'Commercial Snow Removal' started by Craftybigdog, Feb 27, 2003.

  1. Craftybigdog

    Craftybigdog Senior Member
    Messages: 238

    Im in business with someone and Im trying to come up with an hourly wage to pay ourselves instead of 50/50 I was thinking 25hr what is your input, thanks alot!
  2. Chief Plow

    Chief Plow Senior Member
    Messages: 201

    I have no partners, but I do sub out to 2 guys and I guy is on call. After they get paid, and bus expenses, my cut equals about $65 per hour.

  3. Lazer Man

    Lazer Man Senior Member
    from SW Pa.
    Messages: 139

    Crafty, I would think maybe 15.00 per hr might not be bad considering all he has to do is drive the truck and as far as paper work pay him the same rate per hr. He probably isn't going to like the above setup much but try to explain to him that this equal partner thing just doesn't fly. I'm going by what your talkin about on your other post. This whole situation is a very sticky situation and is going to be tough getting out of all parties being happy.

  4. Big Nate's Plowing

    Big Nate's Plowing PlowSite.com Addict
    Messages: 1,266

    I range from $50 on the low side to $150 an hour on the high side, mostly around $85-$95 hr average

  5. jakegypsum

    jakegypsum Senior Member
    Messages: 101

    If you guy's are equal partners and that this is a "supplemental" income, then 50/50 is the best way to go. (As long as there are no costs in repairs on your equipement).
    If plowing is more so considered a part of service that your business offers, then you have to look at it as a whole in which the company gets the gross total and then an hourly rate would be dispersed fairly to both of you. You would need to establish a fee that the company would receive to cover equipement costs & expense on a regular basis and then factor your hourly rate on to the balance of the receivings.
    Hope this helps. Jake.

    DIESELRAM30 Member
    Messages: 53

    i plow for myself and average around 65 to 75 dollars an hour, if i sub contract someone to help i charge my account for an extra truck
  7. Big Todd

    Big Todd Senior Member
    Messages: 126

    Hey Craftybigdog, good question. I think that I can relate and hope that my suggestion is helpful.

    My Partner in snowplowing happens to be my brother. As anyone knows, being in business with a family member can be a touchy situation, and it always seems to come down to the money...

    For the first year we did this, we split everything 50/50 and paid the expenses out of our own pockets. The second and third years, we estimated how much we would make and paid ourselves a monthly "salary" and then at the end of the season, we would split whatever profits were left over, again paying our own expenses out of pocket. The next year, we did the same basic thing, but because we couldn't agree on whether or not one was putting in more hours than the other, I formulated an elaborite scheme to keep track of our hours throughout the season and divide up the profits at the end of the season based on the total amount of hours worked. Needless to say neither of us was happy about any of the above methods.

    What we have done the past two years is to as follows:

    1. Bring in a third party, whom we both trust, to oversee the finances.
    2. Specifically define our individual roles in the company (I handle all customer contact and major repairs on the trucks, he does all of the office work and book-keeping - and we both plow as needed)
    3. Let the business make our truck payments. Repairs and maintanance are our own responsibility.
    4. Keep track of our mileage while plowing and get reimbursed for it (.25/mile)
    5. Pay ourselves an hourly rate - the same as what we pay our subs ($15/hr).
    6. At the end of the season, we will decide exactly what to do with any left over profits, but we agreed in advance that the bulk of it should be re-invested in either equipment or something to help the business grow.

    This has worked out very well for us so far. Especially bringing in a third party. Just remember, if you want to be serious about your business, treat it like a business. If you treat it like a little thing you do on the side with your buddy, you probably won't get too far, and you are likely to loose a friend.

    Hope this helps


    PINEISLAND1 PlowSite.com Veteran
    Messages: 664

    Well put Todd.

    I just gotta know where you find the $15 per hour subs though !!

    DIESELRAM30 Member
    Messages: 53

    Yea i also wanna know where you sub contract guys for 15 an hour i wouldn't even start my truck for less than 30
  10. Lazer Man

    Lazer Man Senior Member
    from SW Pa.
    Messages: 139

    I can't speak for Todd, but when I said 15.00 per hr I was talking driver pay only. Not payment for total use of the truck. In another thread Crafty told of a problem he is having with his partner, I am referring the payment that he should possibly pay his partner for work performed.

  11. Scott Fortin

    Scott Fortin Junior Member
    Messages: 16

    I've got a partner also...and the straight 50/50 upfront thing is sticky since it always seemed like one or the other was doing more of the labor. Creates hard feelings for sure. What we did at the end of last year, and so far this year is $50 per hour the same as we pay our subs hourly, then we split the rest 50/50 as soon as all the bills are paid. As the one that keeps the books, it just makes it SO much easier for me to track since everyone is at $50 an hour this way.
  12. Big Todd

    Big Todd Senior Member
    Messages: 126

    Yeah, my fault. We pay guys to drive our trucks for $15. Subs with their own trucks get $40 to $45.
  13. BRIMOW525

    BRIMOW525 Senior Member
    Messages: 259

    Hey Crafty, I don't know if this will help BUT, I know a guy who is a one man band. He splits his PROFIT like this, 1/3 goes to business, 1/3 goes to him for pay, 1/3 goes to savings to help pay for future equipment or problems at the home. Like i said its after he pays the expenses like fuel, materials, tools etc. I dunno if it works but he has 3 trucks, 2 big kabota z machines, large tractor, and alot of other stuff.
  14. PetalsandPines

    PetalsandPines Senior Member
    Messages: 260

    $60 per hour in November.....$2.75 + 6 cups of coffee per hour by March..when you realize that your plowing for free because it won't FREAKIN STOP SNOWING AROUND HERE. I don't ask for much...just one day above 40 this winter.
  15. oakhill2000

    oakhill2000 Member
    Messages: 98

    I am a sole proprietor so the maoney the business makes is mine. I don't give myself any hourly rate it all goes into one either checking or savings account. Next year I am hiring someone to plow with his truck, I will pay him 40 an hour, if he was using one of my trucks I could get away with 15 and hour, but it will be his truck and his plow. I wouldn't even start my truck for less than 30 an hour either.
  16. OffRoadPlow

    OffRoadPlow Senior Member
    Messages: 247

    I would have to agree, the 1/3 rule works well, just remember, that if you pay for expenses out of pocket, you will want to pay yourself as if you were a sub with your own truck. Closer to $50 an hour, or with the 1/3rd rule in effect where you do not cover expenses, you could be closer to $20. IMO