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Old 11-28-2001, 12:13 AM
Matthew Morgan Matthew Morgan is offline
LawnSite Member
Join Date: Nov 2001
Location: Hoopeston Illinois
Posts: 45
subcontract percentages

I have someone who is interested in doing my applications for me. I have never sub-contracted work before. I am speaking with my attorney about a contract and protection from solicitaion, but I am unsure about what percentage of the job I should keep. My only responsibility will be scheduling and billing the customer.

Any advice would be helpful. Thank You!

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Old 11-28-2001, 12:28 AM
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cp cp is offline
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Join Date: Mar 2001
Location: Mechanicsville, VA.
Posts: 263
Some say 20%.

I have gotten as high as 40.

CP Mayhew, Inc.
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Old 11-30-2001, 08:08 AM
HBFOXJr HBFOXJr is offline
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Join Date: Jul 2001
Location: Southern New Jersey
Posts: 1,706
I think 20% is the minimum and up from there. I t may seem like gravy to make 10-15% but if your substituting someone else's labor for your company labor that normally helps recover overhead and earn a profit you need more.
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Old 11-30-2001, 12:33 PM
Guido Guido is offline
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Join Date: Feb 2000
Location: North Las Vegas, Nevada
Posts: 2,085
I've heard 20 - 45 %

but the higher end of that is probobly hard to do unless your not being charged premium prices for their services. How much of a lower rate are they planning on giving to you in comparison to a regular customer since you will be doing all the "back office" work?
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Old 12-02-2001, 07:11 PM
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Henry Henry is offline
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Join Date: Jan 2000
Location: Northern NJ
Posts: 553
I started subbing out my apps this year and I add 30% to the price I'm charged, some higher. The lawns look better than when I did it myself and I don't get any complaints. This company doesn't do anything else so I'm not concerned with them trying to take work from me.
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Old 12-02-2001, 07:21 PM
Lanelle Lanelle is offline
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Join Date: Feb 2000
Location: No.VA, zone 7
Posts: 1,361
When sub-contracting, be sure to get certificates of insurance from each sub-contractor and proof of workman's comp. insurance. This will save you money and potential grief later. Also for the chemical apps., be certain that the person has current pesticide certifications in force. If you are going to be using this applicator for lots of work, make a deal for a lower price so you can add a better margin for yourself.
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