I feel u on that. It’s a good goal to keep in mind. I’m just starting my business so taking quite a few subbed jobs right now as I’m building my own clientele/business. Thanks 
50% is a fair compensatiin for a sub if the jobs are proced well. I wouldn’t pay a sub anymore than that.
Keep in mind as a sub you can hire a helper and pay them hourly and bump up how much your making an hour.
If the jobs are priced eight two guys can do 900-1000.00 a day consistently. The aubs cut is $450.00- 500.00 and if he pays his guy $150.00 he gets $300.00 to $350 a day which is $75,000-80,000 a year gross. Even with equipment and vehicle expense that’s pretty good.
1 Like
Or if there telling you the truth.
Health insurance , Liabilty insurance , commercial vehicle insurance , advertising costs , equitment costs , Gas, am I working for you , or am I working for myself. If you pay all these costs I’ll take 50%.
I would never insult someone who has the same over heads as me with a 50% cut.
3 Likes
It’s not an insult to offer someone an opportunity. Just because, “hypothetically”, you would be insulted with less, the reality is, some people are happy to work for 30%-35% because they don’t have a client base and it’s the best opportunity they have available.
But everyone has the right to take the best opportunity available to them. It’s America 
“Health insurance, advertising costs”
So you can’t pay this on 50% but I can?
,“equitment costs , Gas”
Really? Gas and equipment. You have to drive to any job and they dont pay you for that. Equiment isnt that much at all. If you cant afford squeegees and razors then you shouldnt be working independent.
“am I working for you , or am I working for myself”
You hit the nail on the head right here! You ARE working for me. It is my job and my business not yours! A lot of time and money went into attaining my cusimters and growing mt business to the ooiknt where I can hire subs and still make whay I need. If doing the qork is s9 micj harder than aquiring and maintaining the customers then go get your own customer’s. Why do you need me if it is so easy?"
“I would never insult someone who has the same over heads as me with a 50% cut”
Again so I can afford it at 50% but you can’t? Lol.
There my j9bs and my customers and tour not the one guaranteeing the work and holding bag at the end of the day and its not your business reputatiin on the line. If you can’t make it at 50% your in the wrong business.
1 Like
Your 50% doesn’t involve any work, other than billing and paying a sub. You have the work, but perform none of it when you sub it.
If you think the costs associate with doing the work are so little, why are you hiring a sub at all? Just do it all yourself and keep 100%…
Point being, people who sub, are not going to get a quality sub contractor if they are only paying 50%. You are only going to find someone desperate to take on the work. Sooner or later they wise up and go their own way, or just stop working as a sub because they can get paid better at a normal job being an employee.
Edit to add: No, they are NOT working for you. They are not your employee. They are self employed. As a business owner, I would think you would know that. You are definitely not the “boss”.
4 Likes
If your offering someone an opportunity at 30-35%. Then he is your employee.
He is not a business owner !!!
An that’s a good generous amount to pay an employee, An I’m sure there isn’t anyone that wouldn’t be happy with that offer.
The value of a sub to an owner is determined by comparing it to the next best alternative which is a part or full tim employee. The goal for a well organized company should 30% for labor cost. Now add to that the cost of equipment and vehicle expense and compare it to using a sun and tell me what the value is in a sub beyond 50% of the job?
If I can hire an employee, part or full time, ar 50% of the job why would I hire a sub for more than that? There are pros and cons to using a sub vs an employee so it all depends on preference for the business owner as to which model they prefer.
For me a sub is going to have to offer something of greater value to me to get a higher percentage.
As for work that goes into scheduling the jobs you fail to calculate all the work that want into growijnf the business from scratch to gain those employees and a constant flow of work. You also fail to value the knowledge and expertise that goes into growing such a company and landing those jobs. If anyone could do it then there would be sins.
I would turn it around on you and ask if scheduling the husband keeping the work coming in is so easy then why don’t you just go get your own jobs? Why do you need to sub?
No …I’m not working for you !
Didn’t you see my van ?
it said Majestic !
I jace my own Insurance , my own tools
, An all the same over heads you do .
Yes I will use my gas, an my tools to get to the job that you want 50% on. Never going to happen BTW.
If you look hard enough you will find s person desperate enough to do this for you, but think long an hard before you send him off. Like you said , remember it’s your name that’s on the line.
Your subbing work for a reason , mainly it’s because you don’t have enough man power , if your doing it to make a living your in the wrong line of business not me.
There your jobs An your customers. Why would you send a under paid company to do your customers.
You do your customers , An sub out your prospects
Just trying to help !!!
When anyone has ever called me to do a job for them it’s because there so busy they can’t get it it, An if they call me they know better than to come at me with 50 %. Never going to happen !!
Tske advantage of the desperate guy nit me.
I get it people are desperate , but in all honesty . Give the guy the right amount for the job , An for one it will get done properly everybody makes something , An he will be therr for you when something else comes in.
I think your confusing a 1099 with a legitimate business. No businesses owner should ever let 50% from a contractor in the same line of work be acceptable. If he does he better look long an hard at what’s going on , An get his act together
2 Likes
This, I think, is where you’re getting tripped up.
W2 vs 1099 is not just a matter of preference. There are clear guidelines to follow.
As Majestic mentioned, if you’re trying to live off the income from subs, you’re doing something wrong. If you have that much work to book, you need employees to run a sustainable (and legitimate) business. It would be a very rare case where a business owner is able to legally sub out all of his work, and make a living off of that.
But if you use subcontractors the way they’re really intended, you should be able to pay more than 50%, because it is supplementing your other income. You’re capturing income that would be lost if you didn’t sub out.
All of that said, if you pay me $1000/day, I really don’t care if you’re making $1,001, $1,500, or $3,000 off my work. The percentages really shouldn’t matter from the perspective of the sub. The question should be, “Am I making what I want/need to make?”
And likewise, from the perspective of the person subbing out the work, “Am I making enough off this job to pay for the office/admin/advertising expense of this job, plus a little profit?”
4 Likes
My point was that whether a company decides to use subs or hire employees is their choice and preference. I did not mean it is their preference as to how to label them.
1 Like
Got it. My apologies
If your preference is to use subs instead of employees, and you’re ok jumping through all the IRS and labor rights hoops involved, then it comes down to pricing your jobs high enough to attract quality subs, and have a decent margin left for yourself.
Very similar to pricing properly to afford quality labor. I just think that it takes a much bigger carrot to attract good subs…
1 Like
If it’s my job then you are wokring for me. I am your customer. You are doing the job for me. Without me there is no job. The job is mine not yours.
You seem to be cinfused about the value of a sub. I was a sub for years before I went fully on my own and I have hired plenty of highly qualified suns both at 50% of the job. It has been a standard for years.
If I have to pay any higher than 50% for a sub then I will just hire another employee. Above 50% there is no benefit t9 me as a business owner.
As for a sub the benefit is beyond what your going to make hourly in the job. You will make more than a full time employee and if you hire helpers you will make even more. On to0 of that the benefit is sub contract work allows you to do your own jobs and fill the open days with sub work. Combine those and tour makijng way more than a full time employee.
If you need more than 50% to make good money as a sub your doing something wrong. I did it for years and made way more than I would as a full time employee.
Your wrong !!! Because 30% is better than no %
1 Like
That’s true, to an extent. But, my customers don’t set the price, don’t tell me how to do my job, set my schedule, or anything else about how I run my business.
Now, they may inform me of their budget, what works for their schedule, and anything they may be uncomfortable with about how I do the job. But that’s it.
If that’s the way you’ve been running things, then good 
.
Overall, I really think we’re reading from the same page here, just different paragraphs.
I’m not wrong. Your missing the point.
If I can hire employees and get the job done for less than 50% of the job why do I need you?
What is the valuebyouboffer me and why is it worth more than 50% of the job? That’s the point. If you want to charge higher then fine. I don’t need you. Your value is only as high as it is campared to next best alternative. That’s economics.
You don’t determine tour own value. The next best alternative does unless you can justify the h8gher price with greater value.
So I’m asking you to justify to me tour higher price? What value is there for me as a business owner vs an employee to do the work?
Business customer relationship is based on mutual contract where both parties contribute to determining price and standards. The other factor is the competition. Your competition also determines those factors. If the customer can get What they want for a lower price then why do they need you?
None of us have the freedom to set all the perimeters. We all answer to someone else.
1 Like
Ok here we are today , An you jace lets say 3 employees , an You got them booked for the week
All of a sudden out of the blue you get 10 calls. 3 except your bid , but need it done this week.
What do you think employees come from thin air ?
Maybe you jace a guy on call who knows most don’t. That’s why they sub to a company.
Why lose the job when you can make 30%. Sub it to another contractor
Who will gladly do it at 70%
But will tell you to pound sand at 50%
That’s what subbing is all about. Anything other than that they work for you , An your paying them 30 40 50 percent whatever.
Your mixing up employees , An subcontractors !
1 Like
