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View Full Version : Using Sub Contractors?????????????????????



Rod
13-11-2004, 07:04 AM
I have talked in previous threads about growing the Business, giving work away to other self employed Contractors etc.

I still have far too much work and have considered using sub-contractors. There in lies the problem, I imagine it to be fraught with problems apart from quality and timing etc there is the obvious Insurance and Workcover issues.

I already use sub contractors for the cleaning, aeration/coring and now the Pool maintenance side of the Business. These people are all self employed, responsible and above all competent. And of course I make a return on their work albeit say $5 - $20 a transaction.

Does anybody sub contract out "lawn Care" in this forum? I am sure if you could find a new operator keen to build his/her business. Also build their cash flow without spending a fortune in Advertising in the first few years then it could be the way to go?

Ah yes cash flow, I guess you could find yourself paying the contractor before you get paid?

Stuie
13-11-2004, 07:35 AM
Rod
I used to do a bit of sub contracting.It seemed to me initially it was not worth our effort.We would turn up to places done two weeks previously to a yard that was a foot high and the edges were not done and the last fellow had collected his money and run.We went to the fellow that was running the show and his response ...Take it or leave it .. We left it.It was not up to us to correct the previous sub contractors pathetic efforts all for the price of a simple lawn cut.We were losing money.Thats my experience.
Saying this..if you had competent subbies and kept an eye on what quality of work they were actually capable of you would have less problems.Be prepared for a possible rise in customer complaints.
Payment i think should be a week behind to allow complaints to filter through.Also allow you some control if the subby does a runner and says "yes ive done the work" you pay his gone.
What about a bond of say $500 also a contract.Possibly if it is a complaint situation the subby should redo or fix problem an their time.
STUART
Another jumble of collected thoughts :(

Stuie
13-11-2004, 07:36 AM
The sub contractor should carry their own insurances.But this as you know would have to be verified.
STUART

Tonyr
13-11-2004, 09:55 AM
Mate, The Goatmaster has tried to subbie out work here, 3 different contractors, each went behind my back and poached the work!

Even reciprocating/networking with lawnies here has failed, I give lots, get nothing back...

I do now that I'm not ya typical lawnie use a Slashing contractor regularly, we network, we subbie each other, great system!

I really need a good contractor here to take the town stuff I can't do, that is why I was whining on a previous thread about us indy members not really being united in this way whereas a franchise would have this covered. I now sat sorry can't help you, and can't recommend anyone...I hate doing that!

But it seems no indy members want to use their heads and network, there loss, but mine too! :(

Networking and subbying is the only way to grow, yet so many can't see this! :dean: :dean: :dean:

Now, 1st Sat ever in this industry I'm workin, so I better get to it....is it hot or what???????

Rod
13-11-2004, 11:13 AM
Thanks Stuart and Tony,

My thoughts exactly, its a shame that this type of business does not offer or guarantee such a reasonable "return on investment" that it would be worth the risk of expanding.

Lets face it if it did there would be no need for Jim's and as there would be HUGE multinationals running around and controlling the Lawn Care Business.

Quality of the work you perform can "bite you on the bum" if not careful. My philosophy is quote the derelict lawns and gardens so high that you know you will miss out. (I am sure some will disagree.)

After all "you can't shine $hit!"

Quote the well presented and easy to maintain properties at a sensible price. I am sure most will agree well maintained to start with is a pleasure to work on.

Who wants to park their trailer outside an dump? Bad for your image does not matter what you are paid.

I got a big job today (regular property service) because I was the dearest (don't you love that.) The guy had six quotes and reckons "you get what you pay for." If somehow the overall price for services in this industry could be forced higher instead of some little guy trying to force it down it would be a better place to work and earn a living.

So who is moving to Townsville, I could do with some help?

Topcat
13-11-2004, 11:21 AM
I'm with you goatman,

I always use a subby, just payhim once his done, never have a problem.
Bonus is I get to sleep all night as the jobs finish, his paid..all are happy

Stuie
13-11-2004, 12:43 PM
Rod
Id be up there in a flash but the wife dosent like the heat.Im so sick of the traffic here and so many other things.
I guess the grass is always greener :)
I too dont think multinationals would work here.my main reasons would be ..
1) As you said those that undercut and undercut and therefore dont make a profit.Oh yes cash jobs look like 100% profit but are they really?? A big definate NO! So how much profit do the low ballers make..Beer money probably

2)Costs of Labour
i have a friend who is a sales manager for Tru-Green in L.A.( Met thru similar music interest and didnt find out what he did till we meet up while i was in LA) Their entire labour force in LA is mexicans who will worklonger and harder for less than the average Australian worker will.
I have the thought of running another crew but is this going to make or cost me money.I think margins would be very thin in the residential sector where its hard to get more than $30 - 35 for a good size lawn.Our minimum is $35 now take it or leave it..Id say 70% leave it.We only do top quality work so not interested in cheap jobs.I play hard now got good weekly accounts so i can afford to pick and choose.Leave cheapies to the bottom feeders.
STUART

Hills Lawncare Services
13-11-2004, 06:25 PM
I would like to subbie my work out but all the good contractors I know around here are as busy as me and this brings me to the next question, how good are they if they need subcontracting work. I maybe wrong though they could be just hopeless at getting the work. By the way how does it work do you pay a person a flat rate for the day or do you give them a percentage of the job. As I have discussed in the previous forum we don't have contracts with our residential clients so I can imagine poaching being a definate issue. Maybe more applicable to my commercial clients, but this is where cash flow would be a definate issue as they take longer to pay. I am keen to here from people who currently subbie their work out.

Charbel

bradtez
13-11-2004, 07:56 PM
I now have to subbie out a lot of my work, and the hardest thing i found was to find a hard working, professional looking person to carry my name around town. Made sure he had an ABN and was fully insured. Had a LEGAL contract drawn up for the clients my subbie was to do (almost 60 clients). All clients were told beforehand that subby wasnt to be paid, payment is still made to me.
Subby gets paid once a fortnight and i still make $20-$50 a lawn without lifting a finger :russ:
Only had one complaint from an elderly lady....subby didnt wind her clothesline back down.... :i dunno:

Brad