Subcontracting???

[CwbyClmr]

I am a new business owner who took some extra work last year as a subcontractor to supplement my income. The problem is that I took what the guy was offering at the time and now trying to renegotiate the terms is quite frustrating. I've basically told the guy that I cannot accept his terms and but I am afraid that i may not have enough work in the next year but I am not willing to short what my business and skills are worth to have a little more.
Does anyone have any suggestions or advice?

 

[vharrison2]

I am a new business owner who took some extra work last year as a subcontractor to supplement my income. The problem is that I took what the guy was offering at the time and now trying to renegotiate the terms is quite frustrating. I've basically told the guy that I cannot accept his terms and but I am afraid that i may not have enough work in the next year but I am not willing to short what my business and skills are worth to have a little more.
Does anyone have any suggestions or advice?

So, basically, you gave someone your word that you would do a job at a certain price and now you don't think you can do it for that? Have the conditions changed, like a storm or something; or you just did not bid it right? At the end of the day, it is your word that is important. You won't build a business by being the guy that tells you he can do it at one price then charging more. All of us in business have under bid jobs and have to eat it once in a while.

 

[jonseredbred]

So, basically, you gave someone your word that you would do a job at a certain price and now you don't think you can do it for that? Have the conditions changed, like a storm or something; or you just did not bid it right? At the end of the day, it is your word that is important. You won't build a business by being the guy that tells you he can do it at one price then charging more. All of us in business have under bid jobs and have to eat it once in a while.

I think he is talking about a standing per day price negotiation rather than a single job.

If you cant work for his rate, then being self employed you are free to find other work, I know you are worried but thats how life works.welcome to the perils of business ownership!

Spend your "worry" time marketing your business and those worries will go away.

 

[treeman82]

Myself, I take what I can get when subcontracting so long as it's over $200 per day. Some pay as much as $500 per day. I'm happy to have the work and the money. It might not be the best money, but it is money and work that I otherwise wouldn't have. Are these personal reasons why you want more money, or strictly financial?

 

[CwbyClmr]

I work for another company as a climber, at an hourly wage that we agreed upon when he needs me. Its not a matter of my word, it is a matter of I can no longer work for the wage we agreed upon six months ago. As my debts and equipment has grown I can no longer afford to work for that wage and he is not willing to accept that. I cannot operate, cover my costs, with what he wants to pay me.

 

[ASD]

STICK TO YOUR GUNS
if your rate of 07 is x it is what it is

 

[jmcguiretree]

Everyone is entitled to raise.If he doesn't like it , move on .There are trees growing everywhere !! He might call you back when he can't find anyone cheaper.

 

[BostonBull]

Did you sign anything for "X" amount of $$ for "X" amount of time? In other owrds did you agree to a 6 month 1 year etc etc etc contract?

 

[Jim1NZ]

I tell you what, i would rather sit in my arm chair than bust my ass for nothing.

Calculate your rate very carefully and charge yourself out accordingly, no less. If you want a constant and assured weekly income subcontracting is not necessarily for you, think about the benefits against being an employee.

 

[CwbyClmr]

Thanks

We don't have a contract for an amount of time, we had a verbal agreement on a job by job basis. We have talked about contracts in the past but never sat down to sign one.
We have since discussed the situation and he is aware of the price that i have set, what he does with it is up to him.
Employees make less than an owner because they don't have the equipment debt nor the liability of insurance or WC policies. Now as an owner I have those added expenses but it doesn't seem that wants to pay owner prices he sees it as employee prices.

 

[treeman82]

IMO if you have enough work to keep yourself busy with your own customers, then tell the guy that you want your rate and that's it. If you don't have enough work to keep yourself busy from your own customers, then take what you can from this guy and use his money to build your business.

 

[JTinaTree]

I believe that if your are more productive and experianced, that any company should be willing to pay more for a good climber. I can see somebody not willing to pay as much if your don't have alot of time up the tree.. But if your your good than pay good. I don't work for another company for less than $200 a day locally. I too have insurance to pay for and my equipment and have to figure that in when doing work for other people.. Don't sell your self short if so you will feel pretty crappy at the end of the day..

 

[oldugly]

Some things to remember when subcontracting:

#1 You did not have the expense of bidding the job, or the time put into the customer, (estimates, collections, etc.)

#2 When you need work subcontracting is nice when you can supplement your own jobs with it.

#3 If you are subcontracting for another tree service, than you are benefitting your competitor's clientelle, and reputation.

HOWEVER

If you sell yourself short...YOU SELL US ALL SHORT

I subcontract for two of my biggest competitor's in this area, and I do it for less than I would charge my own customers...however we have a clear understanding that our jobs are separate, Example...I don't hand out my cards on his jobs. At the same time he never intorduces me as his employee. We bid against eachother, and quite competitively, but we never discuss our bids until after one of us gets the job.

There are enough cutthroats in this business, and it is good to see companies working together, instead of against eachother, and that is the choice every business owner will face eventually.

Therefore your contractor needs to come to grips with what he wants.....either you as an asset to him, or you as his head to head competitor. Get what you need, be fair, and remember when he gets upset about the price...just what he is paying for. :rockn:

 

[Jim1NZ]

If you sell yourself short...YOU SELL US ALL SHORT :rockn:

Excellent post, too true!

 

[CwbyClmr]

I don't work for another company for less than $200 a day locally.

Does this include a chipper and trucks or is it just you, your ropes and saws on the job?