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Old 03-31-2008, 11:14 PM   #1 (permalink)
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Default how to fix lowballers

So, saw an ad today in a little county newspaper that some guy with a tractor with a 5' bushhog is willing to work for $30/hour. (uh huh, with fuel at $4/gallon)
So, my rate being just a wee bit more realistic than that, I've figured out how to fix this.
I'm going to hire this guy to do my jobs and pocket the difference til he goes out of business. Shouldn't take too long.

"ok, I need you to make me a named insured on your insurance."

Brian H
Longmont CO
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NH TN75DA, NH TC45D,
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Old 03-31-2008, 11:31 PM   #2 (permalink)
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Quote:
Originally Posted by LoneCowboy View Post
So, saw an ad today in a little county newspaper that some guy with a tractor with a 5' bushhog is willing to work for $30/hour. (uh huh, with fuel at $4/gallon)
So, my rate being just a wee bit more realistic than that, I've figured out how to fix this.
I'm going to hire this guy to do my jobs and pocket the difference til he goes out of business. Shouldn't take too long.

"ok, I need you to make me a named insured on your insurance."
Now why would you want to do that to me?...

Paul in VT

I used to own an ant farm but had to give it up. I couldn't find tractors small enough to fit it.
-- Steven Wright
 
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Old 04-01-2008, 08:00 AM   #3 (permalink)
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Default

Quote:
Originally Posted by LoneCowboy View Post
So, saw an ad today in a little county newspaper that some guy with a tractor with a 5' bushhog is willing to work for $30/hour. (uh huh, with fuel at $4/gallon)
So, my rate being just a wee bit more realistic than that, I've figured out how to fix this.
I'm going to hire this guy to do my jobs and pocket the difference til he goes out of business. Shouldn't take too long.

"ok, I need you to make me a named insured on your insurance."
Now I don't think you're really too serious here LC... but the basic concept at work here is not necessarily all that bad. It's called subcontracting and I have had to consider this myself on a few job quotes... albeit for reasons going beyond price... and I am not just talking about snowplowing either. The key, of course, is finding a subcontractor you can trust to do good, timely work at a price that can still make you money as the manager/middleman. Who knows: This guy could even become your next employee or business partner!!!

Seriously, I actually have some high hopes in this regard since I keep getting requests for jobs beyond my equipment capabilities, but my current liability insurance stands squarely in the way. I plan to readdress the subcontractor restriction at the next renewal in May.
Dougster
 
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Old 04-02-2008, 08:08 PM   #4 (permalink)
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The guy is probably just trying to make ends meet. When i worked construction i did work on the side you would have considered lowballing ,but i had to put food on the table for the wife and three kids and that was the way i could do it. i didn't like it but i did what i had to do. Had i raised my prices then would have lost to much work to the full timers.
 
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