Subcontracting

Discussion in 'Starting a Lawn Care Business' started by jake65, Nov 18, 2006.

  1. jake65

    jake65 LawnSite Member
    Posts: 75

    what do you think about working with other service installers or subcontracting? I will start with the first couple years as just a mow and blow lco but would advertise other services as well. I don't have the equipment or the know-how to perform these services yet. I will eventually like to learn several of the services on my own. But just starting out, I would have to sub them out until I knew that trade. I was thinking if I found one contractor per service, like lawn renovation, one for hardscapes, one for fertalization an so on... This way i could advertise these services as well. This would allow me to get my foot in the door with my mowing service and still collect either a finders fee or a 10-15% fee added to the service i contracted out. I would get references from each of the service providers and use just these people for work to be done.

    Just a thought!
     
  2. Ric3077

    Ric3077 LawnSite Bronze Member
    Posts: 1,113

    I do this with fert and all other chemical jobs. It works out great because I use my time for what I do best, but can offer my customers a complete yard maintenance package and I get a piece of the pie.
     
  3. Doc Green

    Doc Green LawnSite Member
    from Ill.
    Posts: 2

    How much do you make off subcontracting out and what keeps that company from cutting out the middle man?
     
  4. Uranus

    Uranus LawnSite Bronze Member
    from Mass
    Posts: 1,624

    Thats called networking. we all do it unless we are an all in one company. You need to keep those contacts cuz they have the know-how and will help you grow.
     
  5. Prestige-Lawncare

    Prestige-Lawncare LawnSite Senior Member
    Posts: 753

    There is the key word to many, many questions. One of the big keys to success in any business is networking ... one of the most useful business practices you can learn and utilize.

    :weightlifter: :weightlifter:
     
  6. Uranus

    Uranus LawnSite Bronze Member
    from Mass
    Posts: 1,624

    Use it wisely, if you dont you will fall hard on you face. For the kids out there it can be summed up as making friends in the business and keeping them. Networking is the biggest asset for your business. Just dont be an a$$ to other companys and don't make them feel like you are taking advatage of them and you are golden.
     
  7. qualitylawnmanagement

    qualitylawnmanagement LawnSite Bronze Member
    Posts: 1,001

    I do subcontracting on fert cause he has been my dads buddy for years and does great work for us and I don't have to mess with taking the test. But a couple years down the rd I might get out of subcontracting and do everything myself.
     
  8. jake65

    jake65 LawnSite Member
    Posts: 75

    you have to figure I will be doing the advertising for the contractors too. I figure if your they are bidding a $3000-$4000 job, $300 or so bucks as my fee added to thier bid is not going chase the customer away if they know the contractor has a great reputation and references. you might ask , why would a customer go through me to get the job done rather than go directly through the contrator in the first place? Well, I havn't quite figured that one out. It may just give the customer the option and the peace of mind knowing they have one company to provide all thier services. Because , from the customers perspective it just one company performing the services. But, from my perspective its several. I would think pricing becomes more competitive in the mowing services than at the larger paying services. like I said, if the contractor has great references a couple hundred of dollars will not scare them away. I see in the mowing services a $25 lawn will be undercut by $10 and the home owner see's an instant savings. Not to sure of the quality they'll get!! bottom line, i think networking with other companies can be a healthy option. Yes there will be some contractors who will not want to develop business relations and thats ok, but for the small timer, developing relations would be beneficial.
     
  9. Ric3077

    Ric3077 LawnSite Bronze Member
    Posts: 1,113

    Jake check your PM's and call me
     
  10. Allure

    Allure LawnSite Senior Member
    Posts: 426

    I agree 100% about the networking & developing relationships with other contractors. I just had my sprinklers winterized & i asked the guy if he would be interested in working with me if the need arose because i was impressed by him & his attitude.
    The one concern i have had about subcontracting is how do you convince the customer to continue to pay you for a service you don't do yourself when they see the sub show up in his truck with his company's name on it. what keeps them from eliminating the middle man & calling the # on the subs truck the next time.

    I learned the value of networking from my best friend. He built a successful computer co & graphic design co through networking. he has never spent a dime on advertising. .
     

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