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Sub cotractor rates?

Discussion in 'Business Fundamentals' started by mksent02, Nov 20, 2012.

  1. mksent02

    mksent02 Member
    Messages: 37

    Need some help, I have a local company that wants me to do some residential driveways for them. I'm trying to figure out an hourly rate to charge,or at least start negotiating with. I have my own accounts also & his run should take me 2-2.5 hours. I have never subbed out before, but have been plowing on my own for 10+ years. Thanks for any help.
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Your going to be offered 25 bucks an hour.
  3. BC Handyman

    BC Handyman PlowSite.com Addict
    Messages: 1,943

    I option for you is ask for X amount per driveway(might be better $) leaving him room to make some $
    example: its a $40 driveway ask for $30. Just another option for you.
  4. ringahding1

    ringahding1 Senior Member
    Messages: 264

    How many driveways? We start @ $75/hr
  5. BUFF

    BUFF PlowSite Fanatic
    from FR NoCo
    Messages: 9,067

    This is the setup I had when I subbed and currently use the same approach when I sub work out.
  6. Wilnip

    Wilnip Senior Member
    Messages: 592

    Why not go percentage? I think 75% is a fair place to start. A $40 drive would give you $30.
  7. tebletlawns

    tebletlawns Member
    Messages: 36

    Problem with doing it that way is if they underbid a drive you get screwed. I get subbed out for a bigger local company doing their residential in addition to mine. We agreed on a per driveway rate, different rate for different size drive's and amount of snow. Slightly less than my normal rates because of the volume. Worked them into my route and it went great. Good luck.
  8. mksent02

    mksent02 Member
    Messages: 37

    Ouch! I think he's smarter than that. As far as the amount of driveways it's going to be around 30. Keep in mind guys- drives around here are like 10- 12 bucks per & we average around 30 plows. Charging more for different amounts of snow is almost unheard of here. I guess I'm thinking 60-75 per hour, the flat rate thing would work too at 6-7.50 per drive. So am I close? Thanks a bunch!
  9. BC Handyman

    BC Handyman PlowSite.com Addict
    Messages: 1,943

    you dont want to hear what I think about, 10-12 bucks, let alone 6-7.50 Wow really....$10? Seriously? Wow!!!
  10. ALC-GregH

    ALC-GregH PlowSite.com Addict
    from pa
    Messages: 1,143

    I was making $45hr driving someone else's truck. They paid for fuel as well. This was more then 10 years ago. He contracted all the metro train station parking lots as well as bus stations and other lots in the D.C. metro area. He made $130hr per truck doing it for the gov. If you had your own truck it was double that or $90 an hr plus fuel.
  11. Snow Commandor

    Snow Commandor Senior Member
    from 07666
    Messages: 443

    I was making $110 an hr with my half ton truck 13 years ago. And I was just a rookie plow guy back then. I've been just doing my own paces for the past 10 years. I recently iinquired about subbing for a big outfit here in Jersey, only to find that they would only pay me $85 an hr with my 2500 pickup & 8' plow! I just told them to take their $85 & shove it!
  12. Jim74

    Jim74 Member
    Messages: 50

    Honestly, I respect the fact that you can do better but $85 an hour for a 2500 without a sander in my area would be great as a sub, guys get between 50 and 65 around here.

    CNY LAKE EFFECT Junior Member
    Messages: 26

    He is correct, that is what we get here, I have 900 driveways and 65 commercial accounts. I pay my subs 60% of the per push price and I have guys lining up to work around here.
  14. Snow Commandor

    Snow Commandor Senior Member
    from 07666
    Messages: 443

    I also forgot to mention that I do have a Fisher 2000 tailgate salter on the truck. And I had mentioned that when I interviewed to sub for the company last year. But still they only pay 85 for a truck like mine with 8' plow and sater.
  15. BC Handyman

    BC Handyman PlowSite.com Addict
    Messages: 1,943

    WOW, I can see it being that if its a condo,townhome, gated community or something like that, but reg driveways spead around town, Wow!

    Can't be a easy way to make a buckpayup
  16. 94gt331

    94gt331 Senior Member
    from usa
    Messages: 293

    Guys that complain about what making under $50per hr off another company shouldn't even be in the snow buisness. Come on there a buisness trying to make money also, they can't give all there profits to you. Get your own work and stop complaing.
  17. Antlerart06

    Antlerart06 PlowSite Veteran
    Messages: 3,437

    I did this once The company I did it for I took 80% he kept 20 % for the month
    When I had to salt his stuff I used his salt and got 50% of that for the month
  18. mksent02

    mksent02 Member
    Messages: 37

    Thanks for all the replies, an average drive is 1-4 cars & an average price in MY Area is 300 for the season. These are in residential neighborhoods, tight grouping is a must. we have some low ballers at less than 200!
  19. Snow Commandor

    Snow Commandor Senior Member
    from 07666
    Messages: 443

    Most of what I've been doing has been just strickly commercial parking lots and condo complex's. I only do a few res. Driveways for my own landscape customers. So anything I do as far as sub-work is commercial properties. And again I've always used my own truck. I'd be happy to drive someone's truck for $35 an hr. But then my truck would sit idle and not be making $$$.
  20. lawnsrusinc.

    lawnsrusinc. Senior Member
    Messages: 141

    900 DRIVEWAYS how many trucks are you running? That's $300k off your residential work alone. $10 a driveway I got that when I was 12 years old that's just crazy talk