1. Welcome to PlowSite. Notice a fresh look and new features? It’s now easier to share photos and videos, find popular topics fast, and enjoy expanded user profiles. If you have any questions, click HELP at the top or bottom of any page, or send an email to help@plowsite.com. We welcome your feedback.

    Dismiss Notice

Smart Business Decision, Yes or No

Discussion in 'Business Fundamentals' started by Eyesell, Sep 12, 2008.

  1. Eyesell

    Eyesell 2000 Club Member
    Messages: 2,107


    Long story short, I've decided to turn over all my accounts to another fellow plower. My new job is taking a lot more time than I anticipated and being owner of a plowing service is going to be tough, at least to give the type of service my customers were used to the last few years.

    This is my question, I am still going to plow but will no longer be taking phone calls, negotiating contracts, the day to day business stuff, that will be handled by the new guy.

    Should I be paid by the hour, by the job, maybe take a part of the revenue from the account, I don't know.

    What is my time worth, experienced plower with all new equipment, I don't know $150.00hr., not sure, this is where I need the help of my fellow plowers :)

    Looking forward to hearing from you :nod:
  2. NoFearDeere

    NoFearDeere PlowSite.com Addict
    Messages: 1,724

    I was just thinking about you the other day wondering where ya were. ;) Subs in my area get anywhere between $50.00 per hour to $70.00 per hour. I would get something for handing accounts over to him, even if it's a couple hundred bucks or something. Good Luck!
  3. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 9,883


    I think you should keep the reins in your hand and just hire some competent plowers or a subcontractor to do the work and you just take care of the business end this way if things should change you will still have something to fall back on..
  4. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Along the same lines can you hire someone ? Make it very profitable to them to do a good job. Just in case you have to get back into the business there will be something left of what you had. Even if you have to pay more for the help.
  5. LoneCowboy

    LoneCowboy PlowSite.com Addict
    Messages: 1,760

    did you sell the accounts to him, or just hand them over?

    Personally i would like to see a small percentage (10%?) of the gross on those properties this year. After that, they are his. That seems fair. Or some amount of money up front or something.

    If you are just a plow driver now, well, you are just a plow driver. And you should get what experienced sub's make there.

    The two things have really nothing to do with each other.

    They are both worth something, but they don't relate to each other.
  6. iceyman

    iceyman 2000 Club Member
    Messages: 2,925

    thats wat i was thinkin cowboy.....did you just hand them over and say here you go... or was there stipulations to be worked out later.>??? either get money up front or a basically like a commission for this year..... is it alot of work? will you have a job plowing if you want one?
  7. Indy

    Indy Senior Member
    Messages: 704

    Whatever you do, get it in writing so If feelings get hurt and the situation changes (he feels your overstepping or you feel he's under performing) you have something that is enforceable by law. Most of this is up to you because it's your deal, (for now) once he takes or is given ownership, your not in a position to ask for much JMHO

    Good luck
  8. Eyesell

    Eyesell 2000 Club Member
    Messages: 2,107

    Guys great information, I knew you would all come through with some good ideas.

    At this point I just turned them all over, I plan on getting something in writing but figured if I have the time required, I would expect to receive at least 50% of the take on my customers. When I told him this he said he wants to do what ever is far, and since I'm just handing over a decent amount of $$ it is up to him to doing the billing, handling customer issues, do the clean ups etc.

    Again I appreciate all the good ideas and will be working this out over the next week and will let you know what we decide.

    Thanks again
  9. terrapro

    terrapro PlowSite Veteran
    from MI
    Messages: 3,912

    you get 50% and he does everything including the labor?

    i think 30% would be generous but if you get more good for you.
  10. Zodiac

    Zodiac Member
    Messages: 76

    I'm kinda in the same situation, but different. Hah.

    A guy I've known for years has LOTS of contracts. He's had a handful of them for 20 years, and more for almost 10 years now.

    He has two daughters, but one is in the Marine Corps, and the other has no interest in running a business.

    He's getting older and he wants out.

    I don't have time to do anything other than sub contract. He wanted to sell me his business for dirt cheap, but it's not fair since I wouldn't be able to devote any time to it. So he just contracts me out, and pays me well.

    He still gets paid something for handling the business end of it, but he gets to sit in his heated office where he does all the rest of his work (he also owns two other businesses).

    I make money, he makes money. It works out.

    Something like that might work for you too.