Subcontracting

Discussion in 'Starting a Lawn Care Business' started by nautiq544, Jul 8, 2006.

  1. nautiq544

    nautiq544 LawnSite Member
    Posts: 23

    I was on one of my accounts today and I met another LCO down the street. I’m trying to pick up a few more yards in the area and we were discussing some things. He said he had 14 accounts or so he was looking to sub contract out. He just had to many to handle by himself. He offered to split the gross at the end of the month in half with me. (50%) What’s the going sub contracting rate for typical lawn maintenance work.? (Mow, edge, trim, blow) 50% seems low to me.

    Also what’s a clever way to get theses accounts from him by working them off or something?

    New at subing so give me any helpful info you can.
    -Thanks
     
  2. NEPSJay

    NEPSJay LawnSite Senior Member
    Posts: 492

    if he charges $30.00 for a lawn, you'll do it for $15.00? :confused: :confused: Wanna move to PA? ill send u plane ticket....
     
  3. Splicer

    Splicer LawnSite Senior Member
    Posts: 992

    Generally speaking a sub contractor gets 2/3's and the contractor keeps 1/3...so for a $30.00 lawn you get $20.00, he keeps $10.00...
     
  4. Surf'n'Turf

    Surf'n'Turf LawnSite Senior Member
    Posts: 326

    You do the work....he keeps the profit :hammerhead: subcontracting awn cutting generally don't work.
     
  5. nautiq544

    nautiq544 LawnSite Member
    Posts: 23

    Is it a good way to get my name out in some of the areas I want? 2/3's at lest seems to be about right. This would just be temp. until I get enough of my own accounts. I could use the cash to help cover some start up costs.
     
  6. roger miller

    roger miller LawnSite Member
    Posts: 31

    If you can make at least decent money by getting 2/3, then I would do it IF you have the time and really do need the income. There is a point where something is better than nothing. If you do this, make sure your work is perfect. That is how I got started. I got a chance to pick up a few crappy yards for a guy and even though they were a pain, I did a good job and thru it all I ended up getting a contract of 60 accounts because of it. I did those jobs for around $20 per hour because I went the extra mile. Now, because of it, the contract I got I'm $60 -$70 per hour because they liked my quality so well. You got to start somewhere. It will only advance business somewhere down the line.
     
  7. bullethead

    bullethead LawnSite Senior Member
    from Texas
    Posts: 273

    Negotiate a higher percentage (i.e if $30 lawn, you get $25 he gets $5) and then do them if they fit in with your routes. Sure, you might make less per cut on these yard, but since you are not maxed out, you a generating additional dollars to cover your overhead - that you would not have otherwise - it's a no brainer in my opinion. Added benefit is the additional exposure you will get.

    But no way I would split them 50/50, you wouldn't even cover your variable costs. Good luck.
     
  8. nautiq544

    nautiq544 LawnSite Member
    Posts: 23

    Wow. Thanks a ton. I am going to try to work out a good price. I would actually like to obtain some of these 14 accounts. How could I work out a deal to work them off instead of having to put up the cash to buy the accounts. If I actually work these accounts off it could cost me less if the deal is right than having to advertise to get these accounts. A lot of them are in areas that won't allow doorhangers and what not. At this stage in the game with startup and all, my costs are higher than they will be, hopefully, so what are some ideas?
     
  9. roger miller

    roger miller LawnSite Member
    Posts: 31

    Is this guy currently doing a really good job for those accounts? If he is not, and you do really good work, that will help if the homeowners take notice of the difference. Also, if you have time, ask them if they need anything extra done and you'd be glad to do it, even if it is something you don't want to do. The other guy is probably "mow and go" and doesn't give time to anything extra they might want done or need done. Remember, if you set a high quality standard, you have to continue it no matter how busy you become because if that is what you start out doing, that is what is expected from you always. If you don't, someone could come along and do the same to you. You could also talk to each of those people and tell them that you are just helping out because he is behind. Even if you sub out the rest of this year, let them know that next year you are interested in directly working with them. Get to know them, show you care about what you are doing.
     
  10. roger miller

    roger miller LawnSite Member
    Posts: 31

    If you would do anything extra for anyone, make sure they pay you directly and not thru the other guy. He doesn't need any of that money, plus you are starting the process of doing business with them at the same time.
     

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