Sub Contracting

Discussion in 'Pesticide & Herbicide Application' started by patmorrissey72, Jan 5, 2007.

  1. patmorrissey72

    patmorrissey72 LawnSite Member
    Posts: 7

    Ive got a question for other fert companies out there. I have a lawncare company that does some work for us during the winter months. The owner recently asked me if I would want him to refer us for any fertilizer work for the summer months. I was wondering if anyone else out there had any experience with this. As far as I can tell I think I have a few options to handle this. I could quote the job, give him 10% off and let him give the customer the actual price. I think I would just bill him and let him deal with any headaches. Or I could just have him give our information out and quote the job like it was any other. Or would it be better just to give him a bonus for any referals that signed with us. I would appreciate any kind of advice that you guys could offer me on the subject.

    Thank you
     
  2. Team-Green L&L

    Team-Green L&L LawnSite Bronze Member
    Posts: 1,776

    We did the 10% markup thing last year with our fert. subs. It was a headache! The sub has to leave his flag and we wanted him to leave generic flags, we were always distrusting and what-not. This year we decided to have non-compete agreements drawn up to protect our assets. The line between "your" assets and "their promotions" has to be established in writing. Our agreement prevents any marketing to clients that are "generated through our marketing efforts" or the one's that call us for service.

    Now, if our fert. guy is working on "so and so's" lawn and the neighbor flags him down, that is his efforts, not ours. The other thing is to make sure you are benefiting from the agreement at a similar rate. If they are using your services exclusively, you should be referring their company also. In actuality, this is part of the terms of any "binding contract" as the courts put it..." a contract can only be enforceable if both parties are benefiting from it's terms". That is from The Supreme Court.
     
  3. Rayholio

    Rayholio LawnSite Bronze Member
    Posts: 1,461

    I work with several local mower guys... what I've found is that the ones that don't have a fert program don't really want to mess with it.. so I will not be sub-contracted on seasonal service.. If I recive a referall from a mower guy, I give him a $20 bill... at the end of the year, I'll send him a restraunt gift card for $25-$50 for additional thanks..

    On one time jobs, I just come give a quote to the mower guy, and he can charge the customer anything he wants..
     

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