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Sub Contracting

Discussion in 'Business Operations' started by heygrassman, Apr 8, 2002.

  1. heygrassman

    heygrassman LawnSite Senior Member
    Posts: 509

    What % are you guys paying on mowing jobs that you are subbing out?

  2. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    I'm one greedy s.o.b. I don't subcontract out to anyone when it comes to mowing.

    snow plowing, yes...lawn mowing, nope. We find a way to get it done.
  3. smburgess

    smburgess LawnSite Senior Member
    Posts: 469

    I don't sub out what I can do!

    OBRYANMAINT LawnSite Senior Member
    Posts: 555

    generally speaking I don't know that there is enough margin there to pay a sub to mow
  5. ChicagoLawn

    ChicagoLawn LawnSite Member
    Posts: 126

    In regard to sub-contracting.......... as of 3/15/02, my company sub-contracts all grounds maintenance service(Includes clean up(s), weekly lawn cutting, gutter cleaning, aeration, etc.). My benchmark is to retain 30% as a minimum on these services. The attraction to the sub-contractor is a timely payout of net 10 days on a "weekly" invoice of services complete, efficient routes and the ability to lease my 16' Wells Cargo Trailer maintenance rigs complete with all necessary equipment to complete work and of course appropriate signage on trailer to attract new customers in my(general contractor) name.

    All sub-contractors go through a series of steps in becoming a "Independent Contractor" of my company. Of course, a non-compete is a important clause in the agreement both parties sign but even more critical is the system in which you operate. If you want to retain a "high caliber" independent contractor the "deal" must be - WIN/WIN!

    I see it as all of my services can be subbed out to Independent Contractors exactly how we arrange with snow and ice management services. My company will be a 100% "General Contractor" of all Landscape and Snow Management Services by 12/1/02.

    Lets keep this thread going with some factual feedback.


    OBRYANMAINT LawnSite Senior Member
    Posts: 555

    I am interested in learning more about subbing out lawn services
  7. Albemarle Lawn

    Albemarle Lawn LawnSite Bronze Member
    Posts: 1,544

    Hope it doesn't blow too hard up in the windy city!!!

    What happens when the subs screw up and don't care because they find greener pastures and your work is put on the "back burner."

    I think you are ok as long as the economy sucks, but when things pick up your subs will check out.

  8. ChicagoLawn

    ChicagoLawn LawnSite Member
    Posts: 126

    Albemarle Lawn,

    Based on your response, it sounds as if you are unsure??? of yourself, marketing and of course your business operating system.

    Explain "house of cards"/Independent Contractors in comparison to a staff of employees?

    To answer your question "What do you do when subs screw up", the same any caring company would do.........RESOLVE THE PROBLEM and of course fine tune your operating system to be certain that the same problem will never arise again.

    What will you do when your long time employee(s) (if you have any at all) tell you that you have not or simply can't afford to pay them enough per PRODUCTION/HOUR?????? to retain their service. Can you still compete? Can you survive without them? Talk about being un-prepared in a good economy or in your words "bad economy".

    It is all about production/employee/hour.........the most profitable will win regardless of business entity.

  9. I agree...there is really no more stability in employees than there is with subs. It all depends on the structure of the deal. I sub some stuff out, not mowing, and it works fine because we both make money.

    Perhaps those of you who are worried about stuff "falling apart" should stay solo.

    The rest of us will take our chances and win some lose some. The longer we do this the more we win. The more we win the more chances we take, the mo..................you get the idea.

    The solo ops will do fine too, depends on what you want. I don't think the economy has so much to do with this either. i am damn tired of people blaming everything on the economy.

    Get the book "who moved my cheese". and stop worrying about the damn economy....seriously your life and business are what YOU make of it not the other way around.
  10. garydale

    garydale LawnSite Senior Member
    Posts: 813

    We try get 20% on our sub's work.

    Further we pass along as much of the responsibility, warranty, call backs as we can.

    There are good subs out there, but you have to handle them right. Don't screw with them and pay them on time.

    When your subs know you are true to your word and dependable
    they will stick with you.

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