# Question for subs



## JoeInPI (Dec 18, 2014)

I'm new to the forum, relatively new (under a year) for PPS and have been getting calls from some of the regionals and nationals. I have always done work for local Realtors, Municipalities, Agents, and homeowners up to this point.

One thing I don't really get is when you get an order for a cleaning, or an inspection or whatever it may be, and the service is a couple of hours away- how do you not lose money? I read that you will bid on items, but you're still driving initially 250+ miles to do a cheap cleaning. You're already underwater there- even if you bid on items, you still have to go back, another 250+ miles to do the order, as approved. So if you get a $50 bid approval for stuff you found when you were cleaning something for $35, how do you reconcile that as worthwhile? It's not even a cashflow thing, since you're paying more for gas than you're making to go there.

I only ask because usually when we work for a customer, we are able to say "we found some bare wires that we capped for you, here are some pictures, it was obviously a safety concern and it is a $20 job." In essence, you are working in advance to remedy issues that are safety concerns while you are there, 250+ miles away. When I talked to one of the regionals, they would not allow that, you need to submit a bid. Do you then have to drive back 250+ miles to do a $20 wire capping? Does that really happen?!

I'm just trying to figure out if this is even worth pursuing with regionals or nationals. Is it a volume thing? What if you want to remain somewhat small, and only serve a sparsely populated region like Northern MI? I have new appreciation for my local customers... 

TIA!


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## allure9121 (Jan 26, 2014)

Yes it does happen do not sign on stay with your local clients


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## All Island Handy (Dec 12, 2012)

Stick to what your doing !!!! Most people around here are trying to get away from the p&p and get to what you have been doing...good luck


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## JoeInPI (Dec 18, 2014)

Man- I guess I should be thankful for the relationships I have now... Thanks!


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## GTX63 (Apr 12, 2012)

Busy does not always mean profitable.

Tomorrow we will be on site for a 3k debris removal and another one for about $1600. No sales cleans, jus some after pics. A regional would probably pay around 40% of that, with their own sets of traps and runarounds.
Over the weekend I received emails from two national outfits to drive 40 miles one way for a $60 window board up, which includes full inspections for bids and hazards, a $70 full rekey (parts and labor) out in the sticks. That isn't even busy work. If I haven't heard of them before, I just ignore them. If we have a relationship, I usually decline as out of area, price too low, etc.

If you start your business with 5k in the bank, a new truck and trailer, then 2 years later you have $5500 in the bank, your truck and trailer are worn out, it isn't hard to figure out whether you are making it or not.


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## JoeInPI (Dec 18, 2014)

GTX- what types of customers are you getting your cleanouts from?

If these nationals/regionals say $25/yd, can you send a bid with a higher number for a cleanout, or is the agreement you sign for $25/yd what it is, no matter what? I would think you could bid for places far away a higher per yard charge to make up the mileage, bid a higher quantity (which they would probably knock down) or is that a fantasy land?


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## NewYork (Mar 22, 2014)

*miles*

first off why so far tighten down the zip codes you be broke by next week


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## JoeInPI (Dec 18, 2014)

NewYork said:


> first off why so far tighten down the zip codes you be broke by next week


Exactly...


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## GTX63 (Apr 12, 2012)

Most of these outfits will tell you $x per cyd is what they pay, take it or leave it. Maybe 10 years ago you may get a little wiggle room to negotiate; now subs are a dime a dozen to them. They will also tell you that you may get a job next door and you may get one in the next county, that they all even out. We do work for Wells Fargo as an example, some other national lenders and companies that utilize the broker as the rep
Our work for nationals is very little anymore because I grew tired of being wined and dined and then made into a chump after the fact. We bid a cleanout on a farmhouse and five acres last week for a broker. I added $10 per cyd above our going rate due to distance, some hazards and the fact the debris was scattered.
That is about $25-$30 above what most of these preservation yahoos would even consider paying. I don't need a national. Neither does anyone else if they would just believe in themselves.


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## Motovated Pro (Dec 8, 2014)

Hey GTX63 also tired of the bull sh_t can you tell me how I can get an application for WF I'm in Ga.


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## GTX63 (Apr 12, 2012)

Print up some flyers, hit the real estate offices, find what brokers are handling foreclosures. Drop off pizza and Pepsi, business cards, etc.
Insurance companies, banks, the rental market ie landlords, apartment complex managers, strip malls, etc. Post in the free ad section of papers. Do everything you can to get a name out there. Make a pricelist that is competitive and profitable.

My wife's cousin in southwest Florida did this and between his father and his brother, run an operation that is now all cash and booming. They do high 6 figures every year and their clients are all private. The father called me 2 years ago wanting to expand even further and asked about companies like SG and Five Brothers, etc. I told him flat out to avoid them for an hour. He gave a couple of them a shot and within 30 days kicked them back to the curb.

Have another cousin that started his roofing business the same way as above.
Pounded the sidewalk. Did 40k his first year, 110k his second, and has run seven figures every year since.

Motovated Pro, I'm not sure what is set up for Georgia. You might try Premiere Asset Services website. I have a SIL in Well Fargo who deals with investments and securities in Indianapolis. I'll see what I can find out.


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## JoeInPI (Dec 18, 2014)

It was interesting to do the breakdowns, because when you talk to a broker, your reasonable rate as a private may well be less than they pay a national to cover for them, and you would have ended up making next to nothing for doing the same job for that national.

I know once some of the private customers I am working for found out what the nationals were paying subs to work and how much they were keeping as basically a processing fee, they dumped them.


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