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Subbing for another company who has the USM contract..

Discussion in 'Commercial Snow Removal' started by ACA L&L, Sep 29, 2010.

  1. ACA L&L

    ACA L&L Senior Member
    Messages: 362

    So last year we were called by the company/guy who inked the contract with usm to help him out with some of his wal mart accounts as he is another city. we have a few trucks and it just so happened he agreed to the hourly rate we gave him. The rate was $125 per hour per truck (3/4 9ft straight). Payment to be made within 48 hours of completed work, we had the time we needed the money so i took a chance and he paid each time we worked, and we worked alot.

    At the end of the season he asked if he could call me in the fall again to set up something, i said sure.

    last night i get the fax, its 10 stores, he "proposed" $225 per salting per store, and his pricing for the plowing was as follows........and im not kidding:
    1.5-3" $400
    3.1-6" $700
    6.1-12" 1100
    12"+ $100 per hour.

    I dont know what hes thinking and im not sure how to reply to his "proposal" but i would rather wash my trucks in snow storm. Quite honestly im offended, we had 20 medium accounts we handled on our own last season and were always done on time with time to spare. We dont get alot of snow maybe 3" a few times but you can count on 6 events for plowing and unlimited salting here so we have the work. Our cash cow was the mountain where we had 3 trucks running when the sun was shining down here on the city, some storms had 18" plus so we pushed alotta snow up there. I remember when we were talking with USM 2 years ago and they were around $1800 for 1-3" per storm and around $1000 for salting I could be wrong but it doesnt matter as we wont be signing a contract with USM as long as im running the show. I dont mind subbing for a guy(we have insurance, our own gas, our own everything) that pays our rates, but really guy. so im wondering what does usm offer for 1-3" these days and if its close to this what HE LL are people thinking. Just wanted to tell someone as im blown away at the "proposal".
  2. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,394

    Well from our application with them your not allowed to use sub contractors....hummmm
  3. ACA L&L

    ACA L&L Senior Member
    Messages: 362

    could be that he _____lied____and just didnt say anything....who knows, guy only has 1 truck, im all for working and paying bills while maintaining our rates, but this seems just plain stupid! my post was more of a vent than anything but theres no way in hell im plowing 3" for $400 buck, not in a million years, and to top it off there all super centers, not the mini lots......not sure if its just me but one truck aint gonna cover it maybe all 3 would but not one, and ten??????????BBWWhhaaaaaa
  4. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,953

    you seem super surprised by all of this, and i'm not exactly sure why....
  5. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

    USM very low rates to begin with...

    The guy who signed the contract has to make some cash....

    Your left with the leftovers and do all the work and liability....

    If you don't like it, don't do the deal, its that simple but I wouldn't be surprised with those rates... have you seen the threads on here about USM?
  6. hoskm01

    hoskm01 Senior Member
    from AZ
    Messages: 475

    Especially if there is no one else around to handle that kind of work. Reject his proposal and see how fast he comes back with a better price.
  7. JohnRoscoe

    JohnRoscoe Senior Member
    Messages: 209

    I'd work up a quote you're comfortable with and send it back to him. Make sure to thank him for the work last year and the opportuniity to quote it again this year.

    I wouldn't be surprised to see him shop your quote and someone else in the area do it for a bit less than you offered, but if you did a good job, he's got your numbers, and he might be back.

    Long-term, you've protected your relationship, your pricing model, and there might be a future in it.
  8. ACA L&L

    ACA L&L Senior Member
    Messages: 362

    I guess were used to having people appreciate the fact that you can help them out when none else can, will or does.

    Anyhow, already moving on, sent him back what we will accept and thanked him for the work last year. New day
  9. hoskm01

    hoskm01 Senior Member
    from AZ
    Messages: 475

    Whether people appreciate your good, hard work, or not, they'll still try to put more money in their pocket if their smart. Any smart businessperson would. Sounds like he is probably not getting paid what he was last year.

    Times are tough, everyone is looking to spend less and pay less.
  10. Scottscape

    Scottscape Senior Member
    Messages: 662

    tell him you want paid even if he doesn't get paid.
  11. optimax

    optimax Junior Member
    Messages: 15

    For the walmart in our area USM pays in the 500 range for the less than 3" level. USM also has at least 3 documents for the contract holder to sign that sais they will not subcontract the work that USM gives them.
  12. ACA L&L

    ACA L&L Senior Member
    Messages: 362

    It is what it is, people are gonna say one thing and do another, thats how it works. Im sure he will find someone to help him out, just not gonna be us this year. We'll be just fine doing what we already have on our schedule.
  13. mrsnowman

    mrsnowman Senior Member
    Messages: 126

    USM clearly states that you are not to use subs. Why don't you get in contact with usm and bid them yourself!
  14. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    why don't you tell USM that he is subbing it out?