Subs vs Employees

Discussion in 'Business Operations' started by SprinklerGuy, Nov 14, 2001.

  1. I have a problem related to this. As I tried to put thoughts onto this thread I realized it would take too much space so I will start with the problem and see what evolves..........
    I have been turning away a lot of work because it is in the form of: "we have a leak and want an estimate to fix it!" Normally I say that we cannot give a free estimate for that because the techs are all tied up doing paying jobs but lately I have been turning away 10 of these or so per week. I have found through experience that if you go do this free estimate it almost always turns into work that you get paid for. Problem is, too much work, not enough employees. Cannot find one at the time to do this work, all good ones are taken.

    However, have found subs that love repairs and get paid a percentage of the labor as their pay. Currently use 1 now and works great. Problem is they want paying jobs not "free estimates that might turn into paying jobs". Can't blame them.

    Should I use subs to do the "sure things" and move a normal employee into the free estimate/sometimes paying job position? The employee in mind is a salaried employee that currently brings in approx 150 per day above his costs(DIRECT COSTS) It is important to maintain this revenue stream as it helps in overhead recovery.
    Or should I continue to turn this potential income away further improving other companies' market shares?
  2. kutnkru

    kutnkru LawnSite Silver Member
    Posts: 2,662

    Tony is there possibly a place on your crew for a temp so that you could free the employee in question up one or two days per week without losing production or having to turn away the potential revenue if you think you will land 8+ of these estimates???

    With people calling for your services in such demand it sounds like either your in a niche market or there just isnt enough reputable guys out there to do the work.

  3. The problem is we are in an area where there is a big demand for our services, not a problem I guess reallly right? Because of this we need to be able to get to these people right away, so the 2-3 day free up thing doesn't always work as I cannot plan for these phone calls.

    I would like to think that my wonderful marketing skills are the reason for the huge demand on my company in such a volitale market but I really think it is just the tremendous growth in this area.

    The marketing that I do should explain some of it though as well as the fact that there are only a few repair companies with as much longevity as me. The life expectancy is very short due to lack of knowledge and proliferation of bars in my town.

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