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Sub Contracting to lowballers

Discussion in 'Lawn Mowing' started by Mclaughld, Feb 23, 2005.

  1. Mclaughld

    Mclaughld LawnSite Member
    Posts: 85

    This idea just popped into my head, maybe you guys could help me work through it.

    I live in an area with lots and lots of the "lowball, Scrub types" Non of these guys have legal documents. They dont pay any taxes. And they cut grass for cheap.

    I was planning on competing with them by providing real customer service spoken in English, Credit card payments, and insurance. I was going to know all my cost and get some commercial work which these guys cant get.

    Then I started to worry..... What about when these guys offer to mow a lawn for $25 a month and im offering $25 a cut. Most people are going to go

    with the half price rate. How can they even be profitable. They are doing for cheaper then my cost................................ Then i thought, How about i

    just have them cut my clients lawns? I'll set up the accounts, handle all the billing, handle all the customer service, I'll Sub contract it out to these guys,

    and pay them $25 and keep the other $25(2 cuts a month). Hell I can set up my own team for commercial accounts and let my lowballer competitors

    make me money on regimentals. I can tell them not to talk to the customer, pretend they dont speak english(even if they do). I know talking with the

    customer and the billing are the least favorite aspects of the business for these guys.

    I wonder if i can get insurance to cover these guys as sub contractors.
    Also how i can pay them without them having a legal business.

    Any ideas people? This is sounding better by the minute.
  2. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    If there subs they need there own ins. You can not set any work scheldules for them or they are employees. And you would have to pay them in cash if they have no legal business. Your setting yourself up for a lot of trouble doing it the way your thinking.

  3. mbella

    mbella LawnSite Bronze Member
    Posts: 1,284

    How long do you think it would last until your clients go direct to your lowballers? They either deal with you or they deal with the lowballer. Either way, they have one point of contact. You're not saving them any trouble.
  4. Mclaughld

    Mclaughld LawnSite Member
    Posts: 85

    They would be lossing alot of service that i provide. Also if one of my loweballers was doing that, I'd cut him off and have another guy take over.
  5. mbella

    mbella LawnSite Bronze Member
    Posts: 1,284

    What else do you provide? The decision is not always yours.
  6. Mclaughld

    Mclaughld LawnSite Member
    Posts: 85

    I wouldnt be setting their schedules......or would I? If i said these lawns need to be done on Thursday, is that setting their schedules? A construction company can hire a sub to install a toilet and tell him to come on thursday. Help me make it work. What would i have to change.
  7. Mclaughld

    Mclaughld LawnSite Member
    Posts: 85

    The customer gets:
    Customer service in english, Credit card billing, Convenience.
    The LowBaller is getting:
    A free account at his going rate, Billing taken care of for him, Not having to deal with the customer. The loweballer would be shooting himself in the foot by trying to steal the accounts.
  8. mbella

    mbella LawnSite Bronze Member
    Posts: 1,284

    Are we talking about mowing?
  9. Mclaughld

    Mclaughld LawnSite Member
    Posts: 85

    Damn you spell check, This is why computers will never take over the world. "Residentials"
  10. Mclaughld

    Mclaughld LawnSite Member
    Posts: 85

    Yes, Just Basic mow, trim, blow, and go

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