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$150.00 Ton/Applied for a "friend"? Central PA

Discussion in 'Bidding & Estimating' started by Stoneheadmtn, Nov 13, 2009.

  1. Stoneheadmtn

    Stoneheadmtn Member
    Messages: 40

    Added an apt, complex for a friend this year. Its right in the middle of my runs AND comes with a garage for the skid steer plus asphalted shed to store bulk salt. I'm subbing the skid loader to an old friend, no walks to do, so all thats left for me is to salt and a little plowing if it gets heavy. I want to help him out and the location is great for salt for my other accts. So, is $150/ton under market price? I'll make money at that (all my other accts are per application) but is it a good deal for him too? Thanks for any input, Jon
  2. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,032

    Personally I wouldn't call you a friend charging me 150/ton but I don't exactly know what your paying for the salt or billing out. Seems like he is giving you a pretty good deal so you should return the favour. Maybe 150 is a deal in your area.
  3. Pristine PM ltd

    Pristine PM ltd PlowSite Veteran
    Messages: 3,794

    I guess that is why friend is in " "
  4. Stoneheadmtn

    Stoneheadmtn Member
    Messages: 40

    He paid $200/ton last year and the friend is in quotes because I don't know the complex owner but do know the guy who did it last year, and since its been built(3 yrs) that goes to church with the apt owner. My friends cost structure is alot high than mine (full time employees he guarantees 40 hrs/wk for) and I just don't have a frame of referemce to know how much to discount the 200/ton w/o seeming to "lowball it".
  5. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,032

    Oh I get it now. Why don't you ask him about it.
  6. Stoneheadmtn

    Stoneheadmtn Member
    Messages: 40

    Right after I get back from Algonquin I will. Got him the skidloader for 30/hr less than last year. The savings just keep adding up!
  7. forestfireguy

    forestfireguy PlowSite.com Addict
    Messages: 1,276

    If the salt bin is valuable to your "full" pay accounts and saves you travel, wear and tear and most importantly time I'd say you'd be foolish not to do it. Even if you were breaking even for a few tons through a spreader a storm that salt storage could be worth thousands to you..........easily. Maybe more depending on your volume. Think about what it might cost you to rent a spot to store salt, cost of a bin and a cover, time to put it in and then think about how long it takes to run a spreader full of salt through your unit? Try to think it through from every angle.............then think it again.

    I don't know the "entire picture" but there doesn't seem to be a downside to this deal for you..........at least not looking in from the outside. And if you're thinking of 150 as lowballing, add the $$ values of the things I mentioned above, divide the total by what you think you'll spread for him( in yards) through the season and add that to your 150, I'd bet good money it comes to a bunch more than you'd "sell" a yard applied to others.

    Maybe something like this,

    Space 500 month(prob more)x 4= 2000
    blocks for a bin- 1500(min)
    cover 1000(min unless your gonna tarp it)

    So you got 4500 say you spread 100 tons for him, thats really 195 ton, then figure the value of time saved,fuel,wear etc, I'd guess that that 150 a yard is worth somewhere between 210 and 225 yard, maybe more..........

    Hope it helped.........others may disagree.
    Last edited: Nov 14, 2009