# Pay by Percentage



## bleacher43 (Nov 15, 2011)

I was wondering if many members that sub are paid by percentage of gross, and what that percentage is?


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## NickT (Feb 1, 2011)

Please explain


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## bleacher43 (Nov 15, 2011)

I have a route and I am paid a percentage of the total cost of all my drives. Example 1000$ worth of drives at 30% would be 300 for the driver. Wondering what people make that are paid in this manner.


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## PGHplowguy (Oct 13, 2009)

I personally have never heard of anyone I know who pay that way or make that way. Sort of an interesting theory. It would make sense to pay that way so that your worker hustles and does a better job quickly. But at the same time if I was getting paid only 30% of 100% of the work I was doing I'd have a major problem with that. It is still your truck, your gas, your wear & tear and your time. Just go out the next year and say "hey, I was the guy who serviced you last year and I'll cut your existing cost 50%. Now they save 50% and you make 20% more.... I'd recommend charging per hour or better yet per job.


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## bleacher43 (Nov 15, 2011)

It is not a theory, it is in practice alot in my area of MA. I am not responsible to put out or pick up stakes, I have no billing or collection issues. I am paid 10 days from the storm. I am just wondering what the going rate is. But I see from the responses not really anyone on here paid this way.


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## PGHplowguy (Oct 13, 2009)

I can understand that you do not do the behind the scenes work. That does build up, I know because I do it. But, still only getting anything less then half the gross income is sort of crazy in my eyes. Only way I can conceivably understand that is being 5'1'', really tan, wearing a big sombrero and tired from my border jumping.

If you find out what the common % is please let me know. I may want to come up there, bid on everything and pay the peasants to work for nothing.


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## bleacher43 (Nov 15, 2011)

The going rate is 65 hour. Which I average 72 hour by %. I think you just like to hear yourself type.


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## PGHplowguy (Oct 13, 2009)

Yes... I love hearing myself type. I prefer that over music.

I know it is $65/Hr. I'm the guy paying that out to people while I make double that just doing the behind the scenes work.

So...your pulling $72/Hr. Your cool that your boss is making $150 +/Hr. while he sits at home in the warm house? I'm not saying $72/Hr is not good loot. Just that in this situation it is not a fair deal. Just trying to help you out. But do not take it that way and snip at me. Thumbs Up


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## bleacher43 (Nov 15, 2011)

I didn't come on here to be called a little illegal. Thanks for your time.Cheers:


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## TPC Services (Dec 15, 2005)

PGHplowguy;1361023 said:


> Yes... I love hearing myself type. I prefer that over music.
> 
> I know it is $65/Hr. I'm the guy paying that out to people while I make double that just doing the behind the scenes work.
> 
> So...your pulling $72/Hr. Your cool that your boss is making $150 +/Hr. while he sits at home in the warm house? I'm not saying $72/Hr is not good loot. Just that in this situation it is not a fair deal. Just trying to help you out. But do not take it that way and snip at me. Thumbs Up


 f how do you know that $65 is the going rate in MA when your in Pittsburgh, 2) I 'm pick up roots and moving to where you live because if your charging $130 per hr $65 per truck an $65 for clinical work?? count me in, but I'll coming in to undercut you to $80 because your damn lucky to get $75 as the contractor here in IA. my point is most everyone on here areas pay's them differant.


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## PGHplowguy (Oct 13, 2009)

1) I'm aware of pricing in different areas through both friends and family in those areas.

2) Learn English grammar. Your post was very hard to read and understand. I hope when you present bids that they are not similar to that mess.

Still though.....Thanks for your input, it was very helpful to me.Thumbs Up


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## TPC Services (Dec 15, 2005)

PGHplowguy;1361614 said:


> 1) I'm aware of pricing in different areas through both friends and family in those areas.
> 
> 2) Learn English grammar. Your post was very hard to read and understand. I hope when you present bids that they are not similar to that mess.
> 
> Still though.....Thanks for your input, it was very helpful to me.Thumbs Up


1) WOW so your a english teacher to nice to F-in know. 
2) Again if you can charge a mark up of 100% for clerical work I'm moving to your town!!! 3) Don't you worry your smart A*& head on how my bids or contracts look like!! 
and after beingin here for 6 years now I have read plenty of post from people in the MA areas that price are way differant then the prices your trying totell is happening there!!

Have a nice life good luck over charging your customers!! :salute:


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## PGHplowguy (Oct 13, 2009)

TPC Services;1362502 said:


> 1) WOW so your a english teacher to nice to F-in know.
> 2) Again if you can charge a mark up of 100% for clerical work I'm moving to your town!!! 3) Don't you worry your smart A*& head on how my bids or contracts look like!!
> and after beingin here for 6 years now I have read plenty of post from people in the MA areas that price are way differant then the prices your trying totell is happening there!!
> 
> Have a nice life good luck over charging your customers!! :salute:


1) Not an English teacher. Just an educated American. Unlike some......not saying anyone's names....

2) If you bothered to read any of the posts above I never gave a price. I just answered the guys question on % to be payed/pay and how I felt he was getting the short end of the stick.

I'm sure most members are pleased with your 600+ useless, senseless, illiterate and worthless responses to posts.


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## TPC Services (Dec 15, 2005)

PGHplowguy;1362836 said:


> 1) Not an English teacher. Just an educated American. Unlike some......not saying anyone's names....
> 
> 2) If you bothered to read any of the posts above I never gave a price. I just answered the guys question on % to be payed/pay and how I felt he was getting the short end of the stick.
> 
> I'm sure most members are pleased with your 600+ useless, senseless, illiterate and worthless responses to posts.


 Well I tell you tuffy I don't have all day like you to lay around and eat corn dip of my belly to run my mouth on here like you do with your less then accurate info.Thumbs Up
After reading your great comments on here I could care less about your other posts!!! you have been on here for two years and have racked up over 1,000 useless comment, GOOD FOR YOU don't break your arm patting yourself on the back buddy!!!

WOW what a tool I hope you don't talk to your mommy like that??
and again have a nice life over charging for your so called great office services!!!


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## bleacher43 (Nov 15, 2011)

I was mistaken it is actually 40% of gross. Driving only.Last season it averaged out to 72$ an hour aproximately.


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## Dig-It-Landscap (Dec 13, 2006)

I pay my sub-contractors two different percentages. I pay 60% of gross if they want paid net10, 70% if they want paid net30. They set the rate in which they want paid before the season starts. This includes the sub supplying the driver, truck/skidloader, plow, salter, fuel, and their own gen liability. Some drivers I supply salt for, and some supply their own. So for salting I subtract the cost of salt used then factor their 70% on the remainder.

This seems to have worked well the last 2 seasons. It keeps them motivated throughout the storm, and any call backs are on their own time, so it keeps the quality where it needs to be. I keep usually 30% for the behind the scenes work which includes: acquiring the contracts, handling the dispatch, setting the routes, marking the lots with stakes, taking the driver on a pre-season drive through their accounts, invoicing, etc.

I would like to know what people think about this system?


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## bleacher43 (Nov 15, 2011)

Please excuse my ignorance, but what does paid net 10 and paid net 30 mean?


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## Dig-It-Landscap (Dec 13, 2006)

Net 10 mean that the sub would get paid within 10 days of completing the work. Net 30 means they get paid in 30 days of completing the work.


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## Wilnip (Oct 4, 2011)

I see this thread took a nasty turn but I'll add my 2 cents since I am close to the Burgh. (Johnstown) I plowed for a local landscaper for about 12 years as an employee. Didn't work in the summer for him, just plowed. I am a sub for him this year, with 2 trucks, 8' straight blade and V blade. He pays 50% of gross and I feel that's fair for reasons already stated and because he has so many accounts, that you basicly back out of 1 driveway and into the next account, which raises the hourly revenue because you are not spendidng 10 minutes to get to the next driveway.


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## bleacher43 (Nov 15, 2011)

Thanks. So by that I should be getting a good 20% more. I took this gig because they had a decent amount of volume( I got 48 accounts).


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## bleacher43 (Nov 15, 2011)

Thanks Wilnip, My route is exactly like that, I do not travel more than 1 minute between stops.


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## Wilnip (Oct 4, 2011)

I would. I thought 50% was low until I thought about not doing all the advertising, billing, collecting, etc. You still have to pay fuel, insurance, repairs, truck and plow, and yourself. I'm not sure you can make a profit at 30%. Btw, we are gonna be plowing tonight! My shiny new plows will get broke in. Lol


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## bleacher43 (Nov 15, 2011)

I was mistaken it is actually 40%. I wish you luck on the snow. We unfortunately will not be cold enough here in the Boston area.


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## Wilnip (Oct 4, 2011)

Sorry Bleacher, I misread the post. I thought you were in Pittsburgh. And I missed the $72/hr. If that's actually what you can make, and not just what you are told you can make, I'd do it. Maybe have an agreement that you will do it for 40% this year, and after you prove your performance, 50% next year. Just a thought.
Good luck. :waving:


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## bleacher43 (Nov 15, 2011)

That is appx. how I did last year, I didn't think it was that bad at 40 obviously could be better. I mean I had to hustle to get the avg to 72. But like I said customers are all concentrated. What are you running Wilnip?


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## Wilnip (Oct 4, 2011)

I have a 99 Dodge 1500 with a new Sno Way straight blade that I have a driver in. I just bought a 02 F250 to hang a Sno Way V plow on. It was a trade in. The guy I plow for is a Sno Way dealer. Gave me a great deal on the plows. How about you?


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## bleacher43 (Nov 15, 2011)

I have a 2010 Chevy 2500HD gasser, Boss 8' Trip Edge. Love em' both. The truck also hauls a DingoTX 420 on a 6x12' open trailer. I haven't used the Dingo for snow removal...yet


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