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Thoughts please

Discussion in 'Commercial Snow Removal' started by Brad3403, Aug 29, 2009.

  1. Brad3403

    Brad3403 Senior Member
    from Alberta
    Messages: 392

    I am a sub-contractor to a large landscaping company for snow removal. Previous years they paid me hourly for each piece of equipment. This year they want to pay a flat rate per site. What are you're thoughts on this?????
  2. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    Sounds like a win win.
  3. 2COR517

    2COR517 PlowSite Fanatic
    Messages: 7,115

    Agreed. What is the proposal they are offering you? For the season? Storm?
  4. bltp203

    bltp203 Senior Member
    Messages: 484

    Well I guess I would want to know if the flat rate changes on the amount of snow fall or will there be no problem with pushing and charging multiple times during a large storm.
  5. Bajak

    Bajak Senior Member
    Messages: 999

    Sounds like you would know as well as they do how much the average contract is. I would take the average in "previous years" add 10-25% and be happy that I finally landed a gravy job for doing a job well done.

    This is a prime example as to why most of us suggest "subbing yourself out" in the first place. Way to go Brad!
  6. Brad3403

    Brad3403 Senior Member
    from Alberta
    Messages: 392

    The rate would be per push. I'm not seeing how this is a win/win? Previously, I didn't push my guys to work faster because we were paid hourly and that way there wasn't as much damage from guys gettin in a hurry. I have worked out my averages per site but haven't gotten the per push rate from the company yet.
  7. RLM

    RLM PlowSite.com Addict
    Messages: 1,270

    With regards to per storm or per push, talk to the company you've worked for, wait for their numbers. It may be good or bad, they may be trying to get you to hussle a little more as you said "hourly I didn't push my guys". They may of figured that out, but your reliable & do good work, they just need to get the numbers ($$$) where they need them. See how it pans out don't forget to comunitcate with them, don't let things upset you & lose your temper:realmad: (as I have in the past). Take the time to choose your words carefully, if necessary tell them you need to run your numbers, think about it, etc. Then get back to them.

    If I think I may say somthing I shouldn't I'll often email them.
  8. hydro_37

    hydro_37 PlowSite Veteran
    from iowa
    Messages: 3,790

    You need to figure time you plow vs. how much you want to make per storm.
  9. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Tell them you need some commitment money too, just in case its a lite winter.
  10. Bajak

    Bajak Senior Member
    Messages: 999

    The company you were working for hourly asked you to submit a per plow. You never "pushed your guys" and there is no need to ever do so. I think it is because of a job well done on your part that they are offering or nearly giving you this contract. Just think about it and decide for yourself what it is that you want to do in regards to this deal. It could well be that the general is giving you the job because you have been more than capable of servicing their customer without their help and they are looking at other contracts. I don't know. Perhaps the customer said "Don't send over any of your other guys, We are happy with the guy that does it now."
    With out knowing all the ins & outs I would say you have earned yourself a good contract.
  11. 2COR517

    2COR517 PlowSite Fanatic
    Messages: 7,115

    Since you know just what your numbers were, you can tell them what you want. And like Grandview said, look for a minimum commitment. They likely have the contract on a seasonal basis, so they will make money whether it snows or not. You helped him get that contract by doing a good job, so you share some of that reward.

    You're in a really good spot. Get paid by the push, minimum for the season, but you can't lose if it snows every other day.

    Give him a price that is fair, but a little more profit than you made last year. That helps you if you decide to invest in wings/bigger plows/vee plows, etc.

    I don't know what your relationship is like with your "boss", but if they balk on the minimum, you could tell him you're looking at some guaranteed money elsewhere.