New Business

[Bodean]

I should talk, but i Sub a chipper guy out. He brings, sharp saws, chipper, 10 yd truck, climbing gear, and a brain.
All for $500. He leaves with a full truck of chips/wood. Maybe use him 7-8 times a year. I'm a part time tree co. owner.
He's a write off too as a Sub....

I can't deal with parking a chipper and truck here in the city. Registration and the etc. Plus getting equipment spray painted sucks.
Parking storage is like $250/month and far away...........

But if I was full time every day hammering my way, I'd have my own truck and chipper.
Like a carpenter has a hammer or a Roofer has a beer.

 

[NickfromWI]

...it's a lot slower than the kind of chippers we are used to working with. I mention this because the slower his chipper is the more I'm gonna end up paying him per hour.

That is incorrect. The slower machine is the more time it will take PER JOB. That doesn't mean he should get more money per hour. It does mean it will take more hours.

For what it's worth, I would expect the total cost for the job to be the same either way.

If Dude A has a wussy chipper, maybe you're paying him $50/hr for everything.
Maybe Dude B has a much faster chipper and is charging $80/hr for everything.

Dude A finished a job in 8 hours. Costs you $400.
Dude B finished a job in 5 hours. Costs you $400.

 

[thattreeguy]

Never do business with friends or family...

seriously, wise advice right there, all my friends i did business with aren't fiends anymore, except for 1 money ruins friendships

 

[Page]

That is incorrect. The slower machine is the more time it will take PER JOB. That doesn't mean he should get more money per hour. It does mean it will take more hours.

your right, I spoke incorrectly, but that's what I meant

 

[Page]

seriously, wise advice right there, all my friends i did business with aren't fiends anymore, except for 1 money ruins friendships

It's a good thing then that we are separate company's. I will just be contracting him out when I need him so if it looks like things aren't working out I will use other people.

 

[Tucker943]

I find doing business with friends or family is OK, only if done once in awhile. Its when it all seems honky dory and you try to keep the ball rolling that it collapses.

 

[okietreedude]

Ive got a friend that helps me now and then although its been more than a year since we worked together last. He has a set price whether i use him 4 hrs, 2 hrs or all day. He usually knows when he's coming, its going to be an all day thing or a duzy of a tree. I know what he wants so I bid the job accordingly. He only brings climbing gear and saw. I do all the ground work/cleanup. Sometimes, Ive had him come in and give me a price on a job that seems to be pretty technical. I feel ive always treated him fairly as he seems to be happy w/ the pay at the end.

On the flip side, I did some chipping work for someone a few yrs back. We didnt agree on a price in advance and he thought the pay should be X and I felt Z. Z was my hourly rate that i would have charged anyone else, his X was about 1/2. I think we ended up agreeing on Y in the end (somewhere in the middle) and I dont think either one of us was particularly happy.

That said, yes you can do work for/with your friends just make sure youre clear first on $$. If youre not happy at the end, discuss the issues man to man and honestly without anger and acusations and next time hopefully things will be different. If he has a set price per hour, be ready to pay it but make sure he's not slacking.

Good Luck!

 

[Bermy]

Get it in writing before you start working together!

I sub a friend who has a bucket truck and a dump truck. $90ph for the bucket, $80 p load for the dump, he helps load and direct trafic and cuts stuff on the ground included. If I don't have an extra labourer and he's got a lot to do we'll add a bit of labour time for him on top of the equipment.
At the start of each 'season' we sit down and agree prices. He gives me priority when I call, will shift other jobs around to get to mine because I pay him quickly and don't try to nickle and dime him. What we agreed is what we agreed. He gives me a slightly lower price than 'retail' so I can make a few $$ too, helps pay the fuel bill.

It works because it keeps his machinery working between other jobs like painting and CCTV camera cleaning, and I'm not paying big bucks to buy it and have it sit around when I don't need it. He's turning into a pretty decent groundie too...he can run a porty ok now! Actually got him wearing PPE on other people's jobs too..haha.

 

[Page]

I think as long as it's all up front and in writing, it will work out. There's always a chance things won't, but I try to live honestly, and be positive and one of these days it'll come back around...pretty sure...mabye

 

[stig]

Richard and I were friends when we started working together.
At first we ran two different businesses and just billed each other.

After about 6 years we started a joint venture business.

We are still friends, and work together every day

 

[Tucker943]

It happens, such as your case Stig. But the chemistry must be perfect and the focus must remain similar. Once each man starts envisioning the future of the business in two different ways that aren't compatible, there's trouble. Personal issues can ruin partnerships too. One guy's wife starts cheating, or drinking heavily, and it starts to eat at his focus and character, the partnership suffers. It takes 2 very disciplined men to make a partnership not only work, but survive long term. Its obvious Stig and Richard have those traits and can draw healthy sized paychecks as a result.

 

[atw]

I had a partner when I first started the business. I was doing all the climbing and he was working the ground. We never paid ourselves (to try and build the company) except when we got paid in cash, we would split it down the middle. We both had full time jobs and were doing tree work in the evenings and weekends. We ended up going our separate ways after about a year because his wife was getting mad that he wasn't home enough and also not getting any $. Little did she know that he was stashing away all the cash money we split to spend on her for presents and such. We are still pretty good friends and hunting buddies.