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Working on Volume

Discussion in 'Commercial Snow Removal' started by jayman3, Jan 4, 2009.

  1. jayman3

    jayman3 Senior Member
    Messages: 372

    I work as a sub for a local company and would like to get some of my own accounts for next season,I did work for myself 4years ago here in my town,but the lowballers are everywhere so I make more subbing and less headaches,the thing I notice here is that more and more contractors are working on volume instead of making decent coin on lesser accounts,It seems like it is a growing trend or is it just me that sees this.And if so do these guys end up making anything or just cover costs of operating.
     
  2. ERCKWD

    ERCKWD Member
    Messages: 32

    I don't know what the economy is like up in Ottawa, but down here we are running into the same thing. It seems like guys are just trying to lowball to get work/volume, as I have told other guys in our area, if you everyone keeps prices up we all make a better living, but leave it to the one guy to low ball everyone
     
  3. murray83

    murray83 Senior Member
    Messages: 420

    I think most times guys just wanna brag on how much work they have (my boss for example) will take any job for next to nothing just to say he has that lot and its a big game for these guys.

    Honestly Jay if your happy with subbing and getting what you want for pricing stay with him,maybe get a few smaller jobs for yourself and with the big stuff act as the sub so the Case has something to do.

    Doctor offices,small gas stations,resturants,appartment buildings small stuff you can bang off quick and profit more.

    I wish you the best of luck
     
  4. Do me a favor, put a stamp on the back of your hand and clock your boss in the mouth for me. Tell him its an express package from a Cape Bretoner for screwing up the market. LMAO!
     
  5. jayman3

    jayman3 Senior Member
    Messages: 372

    Thanks for the advice I am honestly thinking of maybe getting anothe rpickup for next season and getting some smaller stuff like you mentioned,as my truck and hoe right now are busy when it snows they work good as a team truck does all the backdragging and the hoe just keeps on pushing.:salute:
     
  6. Neige

    Neige Sponsor
    Messages: 2,197

    Hey Jay, the best thing is to do the math. How much do you make as a sub, are there any guarantees for hrs, if there is little snow. Lets say you work 10 hrs per event, what will that pay you. Now get some accounts worth 10 hrs of work how much can you make from them, and then decide. I know that in Ottawa prices are at least 30% more than here in Montreal. I work in volume, but that does not mean I lower my prices, NO. I charge what the market will bare. I'm in this to make money, not to work for less, just to say I do the local Wally World. I stick to my prices, and my clients get the service they expect. Win, win:drinkup:
     
  7. jayman3

    jayman3 Senior Member
    Messages: 372

    Thanks Paul advice from a fellow Quebecer is always welcome.If you come down we will meet up and I could go into more detail.
     
    Last edited: Jan 4, 2009
  8. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    funny how if we all paid more attention in class, we all as a people might make better choices
     
  9. murray83

    murray83 Senior Member
    Messages: 420

    lol i'm almost there ;) a few of us are getting testy
     
  10. murray83

    murray83 Senior Member
    Messages: 420

    Keep the hoe and 350 on with your contractor since thats making you money and look into a couple used trucks to handle the smaller jobs you wanna bid on that you can pick up cheap off say kijiji.

    If you don't get the work you want to put those truck on with the guy your subbing to now and just let them make you money payup
     
  11. jayman3

    jayman3 Senior Member
    Messages: 372

    Yes that is what I am thinking of doing and then if there is any snow to be removed from the site or salting to be done it will be extra coin.And if there is any slack I could put a truck on with the contractor.:drinkup:
     
  12. blowerman

    blowerman PlowSite.com Addict
    Messages: 1,261

    I know I've expressed my opinion before on this subject, but I'll agree with Paul. (neige) Figure out what is worth it for you, having your own accounts or working for someone else.
    Not that I low ball, however I do have a large volume in a tight area. When I need to figure my profit, it's very good. Others may think some of my prices are cheaper, but when we have minimal travel or buy salt cheaper than the next person, you can't really say we low balled the price.
    As well, I have friends that get paid more as a sub for some of the larger guys in my area than what we could charge some of our own customers. They make it somewhere?
     
  13. jayman3

    jayman3 Senior Member
    Messages: 372


    That is what I keep hearing keep your run tight less travel.I might just keep on as a sub and maybe get some small stuff to get the ball rolling.
     
    Last edited: Jan 4, 2009
  14. Jay brown

    Jay brown PlowSite.com Addict
    Messages: 1,783

    hey jay, sounds like we fit right into what you described....we try to overdo it and make very little $$$$ compared to most in other areas...and we barley cover our expenses when it comes to plowing and paying for plows and the trucks....but that's the business that we are in.....IMO the best business to have would be one where you only have 1 plowtruck and have it double as a daily driver also....that way if you only get 3-4 events per season you don't have $100,000k in trucks sitting doing almost nothing all year except for 4 days...the reason i have to overbook is to pay for the vehicals and the reason were cheeper than most areas is because most around here use their daily driver and if they make $65/hr they are happy.....SALT is another subject, but it's still a $40,000k investment just to salt...
     
  15. Superior L & L

    Superior L & L PlowSite Veteran
    from MI
    Messages: 3,039

    Thats kind of how we roll. We are very tight on routes. We typically only look to add accounts that are on the same street or in the same business park that we already service. One office park that is 1/2 mile from our shop we take care of two hotels, A spa, two doctors offices and 6 office buildings.
     
  16. jayman3

    jayman3 Senior Member
    Messages: 372


    Ya my truck is my daily driver my main work is excavation but would like to really start to get rolling in the snow biz instead of using it as to keep the payments going.
     
  17. jayman3

    jayman3 Senior Member
    Messages: 372

    This is an othe roption I am thinking of doing.:drinkup:
     
  18. murray83

    murray83 Senior Member
    Messages: 420

    How are you with salting work? a good option could be pick up a used 3/4 or one ton with a plow and mount a spreader on it say a 2-3 yrd size so you could do more salting work for your contractor payup

    Get another 3/4 or 1 ton to do your own accounts or if all else fails put it on with the contractor you sub for
     
  19. jayman3

    jayman3 Senior Member
    Messages: 372

    The run I have with my salter now takes about 5 hrs so not to bad for me he is happy i am happy,but yes I am almost certain that I will get another pickup and do some of my own accounts then get the extra work for removal and salting.