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paying a sub

Discussion in 'Business Fundamentals' started by vmj, Jan 30, 2009.

  1. vmj

    vmj Senior Member
    from conn
    Messages: 762

    I have a sub that plows two lots for me. I have been paying him $125 to plow each time he goes into the lot.. i charge the customer by the inch that is on the lot at time of plowing-1-3 3-4 ect. Sub finds out i'm getting more $ at four inches and says i should pay him more.. What do you guys think?? Should i?
  2. 02DURAMAX

    02DURAMAX PlowSite.com Addict
    Messages: 1,229

    125 Each time he plows it? how long does it take him?
  3. sluggermn

    sluggermn Member
    Messages: 85

    I would say no you should not pay him more.
    #1 it is none of his business what you are getting paid for the job.
    #2 you agreed to a price when you hired him as a sub ( you did sign a contract right?)
    #3 as a contractor you still have expenses and overhead to pay for so you should be allowed to make a little money on the job also. :rolleyes:( place sarcastic smiley here)
    # 4 its none of his business what you charge or what you net from a job.
    #5 see #'s 1 and 4

  4. vmj

    vmj Senior Member
    from conn
    Messages: 762

    it takes him under a hour each lot.. I pay him that because it was his lot with old owner and new owner wanted insurance so i took the acount and we agreeded i'll pay what he was charging before with old owner..Why i don't know but new owner went to him and told him the price when the owner singed a contract with me and i been doing it for two years now.
  5. TCLA

    TCLA 2000 Club Member
    Messages: 2,707

    Although I would agree with these points, you (vjm) do need to consider an increase in the price you pay your sub for increased snow depth. Is it really right to expect him to plow 6 to 8, or even 10" at the same price? Why make him do something you wouldn't do? Unless he is just no good and you don't want to keep him on board, this is one way to lose a good sub.
  6. Kunker

    Kunker Member
    Messages: 96

    Better than $125 an hour with your insurance for liability? I'd say he's well paid as it is. Would it be fair to pay him less for only 2" of snow?
  7. scottL

    scottL PlowSite.com Addict
    Messages: 1,613

    Uhhhh, No and Yes.

    You set a rate for a sub per push. I am assuming that you do not wait until it hits 8" and rather have this sub plow it at 4 and 8. Common sense says the more snow depth the more time so, you would be kind of screwing this guy.

    Secondly, you had a special arrangement with this guy. He HAD the account before and handed it over to you because of insurance. I think you need to pony up to the bar and pay properly.

    Come up with some thing other than a flat rate. I get you don't want him to milk you but on the flip side you sound like your tweaking this guy. Maybe you have not posted all of the situation though.
  8. BigDave12768

    BigDave12768 PlowSite.com Addict
    Messages: 1,446

    wait a minute you mean the guy i work for plowing is making money of me!!!! hats it I am going to demand to see contract an d get paid full amount!!!!!:jester:
  9. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    I don't have all the answers, but this is what I do. If I get the contract, hire a sub, take care of all the billing, and collections, I pay the sub 75% of the contract.
    If the sub brings me the contract, I do the billing and collections I pay the sub 85% of the contract.

    However, the way I am reading this post is the sub basically gave you the contract because he doesn't have insurance. If that is the case, and your covering the insurance, billing, and collecting, I wouldn't give him a penny over 60%. Now to make my point, why in the heck would you let a guy sub for you without insurance? I wouldn't let him drive on the lot, let alone plow under my business without insurance.
  10. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    Rc2505, you are saying basicly that he Should pay more for more snow. If at the end of the month there were 3 occasions with the higher pay then he should get a percentage of that. That makes sense. And I wouldn't hire him to plow either without insurance.

    He agreed on $125 he needs to get $125. It is just like the 20 other posts where the customer is asking a contractor to lower their cost. Work out another deal in the off season.

    I will say it again. If he doesn't have insurance, you are putting you and your family at risk. Tell him you will give him an increase when he gets insurance.
  11. vmj

    vmj Senior Member
    from conn
    Messages: 762

    He has insurance on truck but not com snow removal insurance. I under stand what everyone is saying about this but a sub with truck gets anywhere from $70-$85 dollars hour and the lots take under an hour to do so he's already ahead at 125 per lot. We try to plow them off between 2-4" all the time and i pay him if he goes back to clean up after the storm.
  12. augerandblade

    augerandblade PlowSite.com Addict
    Messages: 1,054

    The sub is gonna give you trouble , look for other options, get rid of this sub!!!!!!!!!!!!!!!!!!!
  13. Burkartsplow

    Burkartsplow PlowSite Veteran
    Messages: 3,246

    he is gettig enough for an hour of work.$125 per hour is great pay. tell him to take a hike if he complains anymore and you are supposed to make some money off this lot. you are in the business of making money and it is not business what you on the lot...good luck
  14. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    I never said I would change anything from where you are at with him. I am just stating what I do, and it seems to work well for me.