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2005-2006 Residentail Contracts

Discussion in 'Business Fundamentals' started by dmjr77, Jan 29, 2005.

  1. dmjr77

    dmjr77 Senior Member
    Messages: 225

    Hello! I was wondering if I should offer a contract for 2005-2006 winter season? I have had many people ask me about that.
    Thank You
     
  2. cet

    cet PlowSite Fanatic
    Messages: 7,202

    Are you asking if you should give them a set price for the year?
     
  3. dmjr77

    dmjr77 Senior Member
    Messages: 225

    I was wondering if it would be a good idea to offer them the same price per storm for next year to lock them in
    Thank You
     
  4. cet

    cet PlowSite Fanatic
    Messages: 7,202

    Well now that you have plowed a few times this year you must know if you are making money and enough money to be happy. Inflation is somewhere around 2% so to charge the same price next year would not be that big a deal. I raise my price every 3-4 years. We charge seasonal pricing. 2% on a $300 driveway is only $6. I usually raise it $25 bucks at a time so every 4 years is good. I have had my customers so long now that I never talk to them. Just show up plowing first storm and bill them partway through the year. I have 2 people that I have never even seen.
     
  5. The Boss1975

    The Boss1975 Junior Member
    Messages: 5

    You Give Good Service ,you Get All The Work !!!

    My business has never advertised nor had i ever had to lock them in .They call me if they go with someone else. I work for doctors ,lawyers,and the rest is commercial work and in seven years never got burned nor had any problems,they are all busy people and so are we so i just tell them i will show up everytime it snows unless they call me to stop service,now commercial is the same way i have been doing business with them for six years and still growing !!!residential is all word of mouth and i tell you it is the best advertising around. :yow!: :yow!:
     
  6. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    I would say if you're ok with the rate they currently have, then sign them up. Even if you think you need to raise it, tell them you'd be glad to, it's just that you'd need to raise it a little. But basically, sure, sign them up. For a lot of people, it's just one more thing they don't have to think or worry about.

    I started something last year that seems to be working well. For people who I started plowing during the last season, I wrote a letter at the end of March offering to continue the current rate if they let me know by June 1st if they wanted me the next winter. Now this March, I'm going to do the same thing with people who were new this winter. When I priced them, I was mindful of that. I figure after two winters, if they're happy with the service, they'll be more likely to stick with you even if there is an increase.
     
  7. SkykingHD

    SkykingHD Senior Member
    Messages: 368

    Pricing for 2005 - 2006 season

    I would believe it is to early to come up with a good price for next season. The price of fuel is up to $1.95 for reg unleaded fuel & $2.15 for diesel. I don't know what salt will be next yr. I don't know what fuel will be. With the unstable world oil market I would not want to get locked in and have fuel go to $3.00+ per gal and have to operate at a 50% increase for fuel and if fuel goes up that much salt and all products will increase.

    Dave