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National Company's, Why?

Discussion in 'Commercial Snow Removal' started by mike33, Mar 10, 2013.

  1. mike33

    mike33 Senior Member
    Messages: 335

    Why did most major corps go with national maintance companys? I work for 2 and tired of seeing all good accounts go with them. Im tired of bullet proof contracts in there favor and waiting 60 + days to get paid. Dont these companys realize they are paying more money?
  2. Rick547

    Rick547 Senior Member
    from Indiana
    Messages: 537

    Everyone is looking for a cheaper deal. It has been happening for centuries. How many textile mills are their in America today? How many shoe makers are still located in the USA? Why did people decide to buy foreign vehicles?

    It is the same with every business. When your profit margin go toward zero you too look for a cheaper way of doing business.

    Rant over!
  3. mike33

    mike33 Senior Member
    Messages: 335

    How is company xyz saving money hiring a maintance company to service there snow and then they hire me. Wouldnt it be cheaper for xyz to hire me direct like they used too?
  4. procut

    procut Senior Member
    Messages: 903

    It's because its a cost they can controll from corporate vs. having individual managers hiring 100s of local contractors.
  5. salopez

    salopez Senior Member
    Messages: 876

    its also easier for the them to manage. one check to write, one billing type to worry about accross the board.

    it sucks, but from their perspective it makes sense....until SHTF
  6. mike33

    mike33 Senior Member
    Messages: 335

    Guess you guys are right they wouldnt be doing it if it wasent efficient. I always figured some ceo had his family to open a maintance company than just skim the money to that side.
  7. thelettuceman

    thelettuceman PlowSite.com Addict
    Messages: 1,218

    Mike: Not verbally bustin on you but consider this>>> Does anyone hold a gun to your head and make you work for them. I would not do it. I have small accounts and do not bother with that national stuff.
  8. cat320

    cat320 2000 Club Member
    Messages: 2,224

    It all comes down to you get what you pay for. and if some one wants to work for next to nothing wait 60+ days to get paid still have the same liability issues then there is something for everyone . everyone could stop the nationals if you didn't work for them or they couldn't get subs to work for them then it would go back to normal but untill the cost is more a lot more to the corps and service is way down on there list of priorities i guess then it will stay the same way .
  9. 32vld

    32vld Senior Member
    from LI, NY
    Messages: 622

    As long as you and others are willing to work for the nationals there will be nationals.

    Those all ready in the business need to educate the new people from working for the nationals.
  10. Banksy

    Banksy PlowSite Veteran
    Messages: 3,113

    So you signed up to work for not one, but two nationals and now you are complaining about them. Talk about cutting off your nose to spite your face. Nationals exist because people like you will work for them. Not sure why you posted this.
  11. ducaticorse

    ducaticorse PlowSite.com Addict
    from we
    Messages: 1,426

    That about sums it up...
  12. leigh

    leigh 2000 Club Member
    from CT
    Messages: 2,342

    I think most companies just don't want to be in the building maintenance business.I plowed a local Vitamin Shoppe for a couple years and they had in house property management division that handled all maintenance.This year they went with a national that handled all building maintenance.I guess there must have been a substantial savings to dissolve that division.They assured me that they wanted me to continue on but I didn't get contract even at the same price.I guess they saved some $$
  13. ponyboy

    ponyboy PlowSite.com Addict
    Messages: 1,104

    I too worked for Vitiamin Shoppe when they were in house they were great I went through 6 building maintenance guys and finally they told me how much they were going to pay me which was less than half of what I charged I sent them their 30 day cancellation notice
    Funny part they got fined for long grass it was only cut 1 a month and snow we were done with all our contract and they were never touched
    But they save money
  14. White Gardens

    White Gardens 2000 Club Member
    Messages: 2,665

    I'm going to say it again, after saying it thousands of times.

    There are good Nationals to work for, and there are bad ones.

    Nationals sometimes are better pricing than local market pricing.

    Even if the pricing is 15% lower than what you would do the services for, that means that 15% goes to the Nationals dealing with each individual account and location where you don't have to, saving you time and office resources that you don't have to pay for.

    And I've said this before.

    We do work for a National. It's been good. It's not the best, but it fills voids in our business that otherwise we wouldn't or couldn't.

  15. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,953

    None of you guys should work for any nationals.
  16. White Gardens

    White Gardens 2000 Club Member
    Messages: 2,665

    Please enlighten me as to why.

  17. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,953

    For me going to the bank every 15 days with one companies checks is too much work. I would hate for any of these guys to have to endure that. The checkin process for another almost took me 10 minutes for two days worth of salting at 4 stores. Ain't nobody got time for that. Another called on the 2nd to find out why they didn't have their invoice yet so they could get their billing done so we can get paid in a timely manner. Oh the harrassment who wants to deal with that?

    They are evil you guys should stay away......
  18. mike33

    mike33 Senior Member
    Messages: 335

    Banksy, 32VLD, Lettucema, you are 100% right. I have broad shoulders and will suck it up i shouldnt be working for them. My problem is im from a small area in far western Md there is only so many commercial sites and more plow trucks than you can think of. I wont mention the store but have 2 accounts under Lipinski and 1 under Cenova. The 2 with lipinski i have had for years with USM but there contract changed. 1 of these 2 stores due to elevation takes in 20% of my income out of 29 site due to its the winter wonder land for my area. So i drop it someone else will grab it what would everyone else do. The 1 account with cenova is small and first year. My rate for either isnt to bad but the wait for money and lack of common sence stinks. For example 1 with lipinski has a long entrance way where wind drifts snow in , there is no service catagory to just service the entrance where somewhere else i would do that and bill 0.5 hr. service. You have to expain sleet storms why your in there scraping more so there is no build up. My rep is pretty good and has repect for me servicing this but i have so much details to expalin compared to others i have green light to use my best judgement. So do you give it up and watch someone else do it or what? You always have the guy with the 25 year old clunker out there for 40.00 ready to take on the world of snow plowing.
  19. White Gardens

    White Gardens 2000 Club Member
    Messages: 2,665

    So your saying, if you have 5 sites with one company and get one check every 15 days with all these sites, then it's more of a hassle?

    One invoice, one check, that doesn't make sense to me.

    People don't realize the time to that you save also by dealing with one rep for multiple sites. That's a lot of elbows to rub and a lot of clients to keep happy. On top of it, it's multiple contracts you have to write up, have people sign, etc.... So how many hours of that is worth it to you?

    I'm playing devil's advocate here. There are many industries that use this same type of system for their services. It's not new to the business world as a whole.

    Here's another thing to consider. How many of you work for property management companies locally? It's the same situation only at a local scale. Guys lowball the accounts and management companies mark up the bill to make their profit, but you never see the management companies getting bashed.

    And then I do realize there are bad nationals and there are the good. I'm willing to bet most of the negativity comes from people who have dealt with the bad.

  20. Laszlo Almasi

    Laszlo Almasi Senior Member
    Messages: 326

    Hell, the sarcasm in his post was so obvious it almost pushed my chair away from my desk. Read it again and I think you will see the sarcasm too.