what should the percentage be for the following:

Discussion in 'Lawn Mowing' started by llama, Aug 19, 2003.

  1. llama

    llama LawnSite Member
    Posts: 165

    I am the owner of a Lawn Care company in Alabama. I have been in the industry nearly one year now. I have done all the work in the afternoons and weekends until now. I have got a contract with a company to cut all of their yards (residentials only) every 10 days. This has added about 50 jobs every 10 days to my workload. I make very good money as a purchasing manager so I do not want to quit until next spring. I family friend has been working for someone else in the business for 5 years. He has made an offer to use my equipment and he will cut all the yards for me for a percentage of the gross.

    Now for my question, What is an acceptable percentage that I should pay him? The total revenue should be approximately $6000 a month for all of the properties.

    Thank you in advance for your help.
     
  2. BSDeality

    BSDeality LawnSite Silver Member
    Posts: 2,849

    why not pay him by the hour? foreman/drivers around here get $12-15/hr. if you give him a % you won't make any money.
     
  3. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Posts: 2,810

    How many hours per month will it take?
     
  4. llama

    llama LawnSite Member
    Posts: 165

    about 100 hours (& about 1000 miles round trip)
     
  5. B&B LAWN

    B&B LAWN LawnSite Senior Member
    Posts: 267

    llama,
    what part of bama you from
     
  6. llama

    llama LawnSite Member
    Posts: 165

    hokes bluff, actually
     
  7. o-so-n-so

    o-so-n-so LawnSite Bronze Member
    from Alabama
    Posts: 1,218

    I would do the routing, scheduling, and managing. Pay for all fuel, oils, grease and repairs/maintenance to equipment for no less than 50% of gross money.

    He must..Do quality work, be on time each service, keep equipment greased, keep you informed of operation on a daily basis, and not lay in bed all day for 50% of gross money. If he should need to hire help, it comes out of his cut.

    If you get complaints on quality...a monetary penalty should be in place. ( $20.00 a complaint) If he does a great job for you then you should have a monetary bonus in place. ($200.00 a month for each month with no complaints)
     
  8. o-so-n-so

    o-so-n-so LawnSite Bronze Member
    from Alabama
    Posts: 1,218

    llama, I come through Hokes Bluff 3 nights a week while on my Full Time Job.
     
  9. fblandscape

    fblandscape Banned
    Posts: 776

    How big are these places? I would break them up into 10 days if I was you. Forget about paying somebody a percentage. Find someone who wants to make a couple bucks for a few hours of work in the afternoon and the two of you bang out like 10 a day after work.
     
  10. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    don't pay him a percentage. If you can get another truck, hire someone on, and pay them per hour.
     

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