Please Explain Subbing Out Services

Discussion in 'Business Operations' started by mdubs, Mar 2, 2013.

  1. mdubs

    mdubs LawnSite Member
    Messages: 64

    I wanting to sub out any fertilizing request I get this year as I do not have licence for that. What does this look like for you (if you do this)?

    Do you have the other company sign a "no compete"?

    Do you have the billing go through you?

    Do you set up the services or do you have your customers do it?

    Do you make any income off the services you have subbed out?

    What do your customers think about you subbing work out? Do they think you are doing the work?

    Thanks for the info!

  2. xclusive

    xclusive LawnSite Bronze Member
    Messages: 1,054

    It really all depends on what you work out with the company you are subbing to. I give a percentage to the companies that give me fert work. They bill the client and then pay me less their percentage. There is no "no compete" signed as we have an agreement I will only do fert work for their clients. If their clients ask me to do something else I refer them back to the landscape company. If the landscape company does not offer that service then I will do the work asked only after I get the approval from the landscape company. Most people do not mind the sub part because you are being honest with them about not being licensed. They do like the fact that they are still only dealing with one company and do not have to worry about finding a separate lawn care company for treatments.
  3. seabee24

    seabee24 LawnSite Senior Member
    Messages: 619

    . That's my thought on it. Lastly you should work out a good sub agreement with clear payment terms, pricing, and pay outs. If your giving them alot of work you should get "bulk" pricing. You should also be clear as to what they charge so you can price the work with out speaking to them. Imagine a customer calls you for a price and you can't quote it. The. Imagine a customer is unhappy with the service, how is that corrected? Is the sub company paid for that job? Have to keep all this in mind, then remember your name is on the invoice and your liability so you better make money doing it
  4. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    SUB contractors are a dime a dozen....

    the way it works is....

    a person starts a business. they have an option. they can do there own advertisenemt or get jobs form contractors.....

    in our BUSINESS, we can do both. the oldest trick in the book is.

    to get in touch with your comptention. tell them your BOOK solid. can they PLEASE take this one and that one for you......

    If they do. then you take 20%
    NOW... while there out working YOUR JOBS. they cant go get new ones. " there tied up "
    SO you get them.
    NOW. you inreturn give it to them and again you TAKE 20%

    it doens't sound like much. BUT do the math....

    how much do you REALLY MAKE.....

    OK if you had 500 customers. at ?.?? and you ONLY made 20% BUT you did nothing but go and bid the job. WELL your in GREAT shape.....

    a sub contractor. doesn't have the cost of advertisement. he saves this. and the contractor recives the amount.

    you prob. or will be contaicted BY Managment Companys. they will offer you a job. u wil go look at it. and you will bid it. and then they will tell u. OH we only have this one out at. 35.00 WAY below what you bided it.....

    A ton of Stores do this. they hire managment companys......

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