Subbing Out Work

Discussion in 'General Industry Discussions' started by Splicer, Aug 20, 2006.

  1. Splicer

    Splicer LawnSite Senior Member
    Posts: 992

    What is the going percentage for me to receive from subbing out a job to another LCO:confused: ???

    I offered someone some real easy work that will pay well...They replied back that I would get 10% of the NET:laugh: ...WTF!? I told them that the minimum acceptable would be 30% and that is of the GROSS...Hell I will do the job myself :weightlifter: before I accept 10%...So a $400 job (NET:laugh: ) pays me $40:nono: ...Not in this lifetime...

    I pressume that the lawn care industry does NOT sub out work??? I mean after I am the one getting the contract I would accept a meager 10%??? EVERY industry I have worked as a contractor it is 60/40...NOT 90/10:laugh: ...Not to mention I would also require a no compete agreement to be signed for that area for a period of 1 year...
    I would wager based on the reply I received that this LCO would want 40% if I was subbing from them...

    If 90/10 is normal for this industry I would rather sub some work from another LCO rather than go through the hassle/expense of getting my own clients...:laugh:

    And I thought I was being generous with the 70%...
     
  2. Runner

    Runner LawnSite Fanatic
    Posts: 13,494

    90/10 of net is actually the norm for about ALL sub work. I've worked with tree guys, irrigation (before we did it), fert guys, concrete contractors, excavators, deck builders, and the list goes on and on. There are so many people in so many different fields that work with each other. 10% may not seem like that much, but you have virtually no involvement except for the setup.
     
  3. paponte

    paponte LawnSite Silver Member
    Posts: 2,366

    I would agree on 10%. If you are capable of doing the work yourself, why would you even consider subbing it out? Sub work is for services that you DO NOT offer... and you are entitled to a small percentage for getting the job, or when you are too busy to complete the work yourself, and instead of losing all profit you sub it out and make the 10% off it. :)
     
  4. Sandgropher

    Sandgropher LawnSite Senior Member
    Posts: 909

    Yes i was going to say 10% before sounds reasonable, but i did not want to look like a fool as you seem to think its a joke....but yes 10% good for just setting it up.:) ...the other guy has to do the hard yards, people sub stuff out they have not got the time to do them selves so its a case of 10% or 0% if you do not sub.
     
  5. jazak

    jazak LawnSite Senior Member
    from NJ
    Posts: 843

    10% is what you get. Nothing less nothing more. You're getting $40 to do nothing I don't know what you're b!tching about.
     
  6. Splicer

    Splicer LawnSite Senior Member
    Posts: 992

    You obviously have no clue as to how sub contracting works :dizzy: as evidenced by your post (including your now deleted post you made earlier)...

    I decided to GIVE the job to someone I know for FREE...10% isn't worth messing with...My client, my name, my money my neck on the line...Get a clue:hammerhead:

    With answers like I have received thus far it is no wonder why this industry isn't as advanced as it should be...For 10% I'll knock on your customers door (I'm doing the work anyway) and tell them I'll do the job for them for 10% less (YOUR 10%) and your services will no longer be required at that address I assure you...:hammerhead:

    You guys are certainly a greedy bunch...
     
  7. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    Why on earth would someone give you 30% to find a customer, and you want them to sign a "no compete"? Thats kind of funny when you think of it. Someone who does landscaping will not do landscaping in a certain area, because on one job them got from you, a job that only pays 70% of what it should. And you of all people wonder about the industry???????????
     
  8. Splicer

    Splicer LawnSite Senior Member
    Posts: 992

    You guys ACTUALLY run a business?:laugh:

    What is so difficult to understand...This IS the standard when sub contracting from every sub and contracting job I have been on in the last 25+ years...And you guys really do not understand what a no compete is do you??? SIMPLY AMAZING:rolleyes: ...The no compete is going after my existing customers...Thats it...My client(s) may not be solicited by you or your associates or employees for a period of 1 year...Cut 'n dry...:hammerhead:

    With responses like yours...yes...yes I do wonder about the industry...:dizzy:
     
  9. Splicer

    Splicer LawnSite Senior Member
    Posts: 992

    10% isn't profit...Its an insult:nono: ...
     
  10. Splicer

    Splicer LawnSite Senior Member
    Posts: 992

    Thanks for at least being honest...:clapping:

    10% may SOUND reasonable but most people are looking at this only from being the subs perspective...Thats why they will always remain small fries while the rest King size:laugh: ...Being the sub you of course think that you deserve ALL the money or 90% anyway since the job was found by the person doing the contracting...

    But I am the one that has to find and approve of the sub contractor over and above getting the contract to begin with...Not to mention that regardless if the client pays me or not I am still the one paying the sub at the completion of the job...No waiting/wondering when you sub from me...

    And 70% payup is better than sitting on your arse getting 0% :cry:
     

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