Forum Discussion
Paying Subs
I'm starting a home services technician/handyman business in my local area for those really small jobs that general contractors don't typically take on. I'd like to initially hire subs for the work where I share a percentage of the profits with them per job. For those using this model, what percentage seems fair in terms of compensation 60/40, 50/50, or some other type of profit split?
5 Replies
Great question!
We've run a sub-contractor model for years and have found great success with it. What we've found is most sub's all want something different, so we built (2) separate options for them. A "Daily Rate" and/or "Per Job" . Take the time to build out the job ad, interview, onboard and retention systems & process ahead of time. We also include a clause for a "1-year Guarantee" and have them sign a contract.
We have a great working relationship with one subcontractor currently, looking to add more this year. We did 600k in revenue with them this past year and want to get that to 1M. We have them quote the job at the price they need then add 30-40% and sell it.
FredHodgeJrI do the same with our tree removal subcontractor and we have made a lot of money together over the years! It's such a good example of a win-win!
Thanks Ryan! What would be an example of a "daily rate" that you would offer the sub in this scenario?
Any time! Have the subcontractor set their rate for you and go from there.
We have some subs that charge $45.00, $55.00 or even $65.00 per hour.
