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How much should I pay Tim?

Discussion in 'Business Fundamentals' started by vintage steel, Nov 12, 2012.

  1. vintage steel

    vintage steel Member
    Messages: 94

    My primary business is Boat repair, I started dabbling in plowing last season. This year I built a second truck so I could keep my mechanic, Tim, around in the off season. He has been picking up [his own] clients all summer and has several signed on. I'm not sure what to pay him. My truck, my insurance, - his gas, his repair bill, his clients.
    Yes, I trust him.
    The only reason for the second truck, was to keep him around, I don't want to lose a good mechanic in the off season.
    I was thinking I take 50%, off the top and he covers gas and repairs. Maybe even, I'll take 50% after gas.
    A sweet deal for him, no doubt, but he makes me a lot of money when the sun is shining.:mechanic:

    What do you think?
  2. alldayrj

    alldayrj PlowSite.com Addict
    Messages: 1,108

    You could reward him for the clients but in reality what did he "spend" to get them compared to what you have spent on equip and ins? Why not pay him hourly and not make this confusing scenario?
  3. vintage steel

    vintage steel Member
    Messages: 94

    I figure, a percentage is easier to figure. Also I don't have to worry about how quickly he plows. seemed reasonable.
    Also, giving him a percentage would motivate him to make more money. I pay him a percentage when he turns wrenches for me, it seems to work very well. The more I make, the more he makes. Thumbs Up
    Just trying to figure a percentage that works.
  4. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

    Is Tim a true employee? Do you have wc and he pays payroll taxes?
  5. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 5,781

    I think if you have a good employee and want to keep them you should pay them a good living salary. Keeps it predictable for the both of you. If you have a good year issue a bonus. Good employees that are happy will sell your business...sounds like the way you're setting it up he's selling himself a job to get away from you.
  6. vintage steel

    vintage steel Member
    Messages: 94

    Yes, he's a "real employee" (taxes, withholding, unemployment, etc.) I pay him pretty well during boating season. The plow thing is just for some extra money, for both of us. We're also hoping it will help keep us from going crazy during the winter.
    Sounds like nobody here is for paying a percentage.

    My man, Tim, is a good employee, I wouldn't have been able to buy a second truck without him. I'm just trying to make sure he doesn't struggle through the winter. That's all.

    I guess I'll figure it out.
  7. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

    If hes an employee (which it sounds as though he is) then just pay him a very good wage. Maybe a bonus at the end of the season (through payroll) for each account he has brought to YOUR company. Seems like a win / win for you and him. I wish all employees were like "Tim"!
  8. GSS LLC

    GSS LLC Senior Member
    Messages: 640

    Sell him the truck. Let him plow in the winter, he makes money to get through winter, you don't have to worry about it.
  9. thelettuceman

    thelettuceman PlowSite.com Addict
    Messages: 1,218

    This sounds like a reasonable and fair deal for both of you.
  10. vintage steel

    vintage steel Member
    Messages: 94

    I like my truck, I put a lot of work into building it. Not really down with selling it. I'll figure out something that is fair. I don't see the problem with a percentage, I guess I'm missing something. I'll talk with Tim and I'm sure we'll work something out, we always do.
  11. Hunter9

    Hunter9 Member
    Messages: 64

    It would be easier to do the % with all expenses on you, then you know your overhead (within reason) and what is "left over" to share or pay off of.
    The "repairs" could be major, engine, trans, etc. So will he pay that or will you?
    I see no issue in the % split, but I would lean towards a 20-25% figure with all the cost on you.
  12. OC&D

    OC&D PlowSite Veteran
    from Earth
    Messages: 3,064

    I see no problem with paying him a percentage, but what that percentage is, is not a question I could answer.
  13. abbottfarm

    abbottfarm Senior Member
    from Maine
    Messages: 108

    I agree. I'm not sure what would be fair as I've never done it like that. I do pay the guys who drives my trailer trucks 25-26.5% depending on how long they've been with me. But that all expenses on my, my truck, ins, fuel, repairs ect.
  14. leigh

    leigh 2000 Club Member
    from CT
    Messages: 2,342

    Add his projected snowplowing income with his average boat season pay and divide by 52and he's on salary, nice steady income.Those with big seasonal swings in income often struggle with a realistic budget .Feast or famine!
  15. leolkfrm

    leolkfrm PlowSite.com Addict
    Messages: 1,979

    give him the same 40 hour paycheck you always do....
  16. OC&D

    OC&D PlowSite Veteran
    from Earth
    Messages: 3,064

    He already mentioned that he doesn't pay him hourly in the first place, but that he pays him a percentage when turning wrenches.
  17. leolkfrm

    leolkfrm PlowSite.com Addict
    Messages: 1,979

    oops missed that,