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275.00 2" - 4" now what?

Discussion in 'Commercial Snow Removal' started by indianabc, Dec 12, 2003.

  1. indianabc

    indianabc Member
    Messages: 41

    I need help finishing a contract. It is a per occurance (who knows which defination of occurance) contract, and I have priced 275.00 for 2" - 4" but I need to price out the rest. This is my first year and I need educated. Do I then say 4" - 8" 550.00? Please help!

    I know this has been disscussed a lot and I have read previous posts - but I am still lost.

    Thanks

    B.C.
     
  2. TLS

    TLS PlowSite.com Addict
    Messages: 1,425

    Here's how I do it.

    This is one of my Lots.

    2-4 = $210
    5-7 = $250
    8-10 = $330
    11-13 = 400
    14 & UP Priced according to storm in a similar scale

    Clears things up a bit for them, and its all spelled out.

    ALso gives me the ability to tweak either way, as those are technically the 3", 6", 9", 12" figures (middle number).

    This is how I've been doing all my contracts for the past 15 years. No complaints, and only a few questions during the REAL big blizzards.
     
  3. indianabc

    indianabc Member
    Messages: 41

    Lets see if I understand..... You are going to charge $250.00 for a 7" snowfall regardless of how many times you hit through out the storm.

    Thanks for the help!!!!
     
  4. TLS

    TLS PlowSite.com Addict
    Messages: 1,425

    YES, and no. I'd charge $275 for a 7" snow, though I usually only hit it once. When its done or about to be done snowing, I head out and plow all of my jobs. I may go back to salt after a re-freeze, but that gets billed as ice control anyway.

    If, under an odd circumstance I'd have to do a double plow for a 7" snow, I'd certainly charge extra for it.

    This is why my 14" and up is usually left open ended. Because on BIG snows you HAVE to plow multiple times.

    Here's how this one breaks down finer....

    2" = 200
    3" = 210~
    4" = 220
    ********
    5" = 235
    6" = 250~
    7" = 275
    ********
    8"= 300
    9" = 330~
    10"=350
    ********
    11"=375
    12"=400~
    13"=425
    ********
    14" starting at $475 and up in a scaleable rate.

    Does that clear things up a bit?
     
  5. the prices you have above, what size lot is that?
     
  6. jsaunders

    jsaunders Senior Member
    Messages: 103

    TLS- how big of an area are you talking about? How long does it take you to plow the 2-4 inches? Thanks Joel
     
  7. TLS

    TLS PlowSite.com Addict
    Messages: 1,425

    Area wise, I'm not good at that, all totalled maybe say just about 2 acres or so? Its broken up into two lots, and 3 entrances. It takes about an hour and 20 minutes to plow a normal 2-4" snow there.
     
  8. indianabc

    indianabc Member
    Messages: 41

    TLS -

    You have been very helpful - THANKS AGAIN. I am starting to understand a little more. What type of wording do you put in your contract to make this clear to the customer...or do you put the whole scale in?

    Thanks

    B.C.
     
  9. TLS

    TLS PlowSite.com Addict
    Messages: 1,425

    Try this.

    Here is another one of my proposal/contracts.


    Word Format
     

    Attached Files:

  10. indianabc

    indianabc Member
    Messages: 41

    Thanks for posting that, but if I was the customer, I would believe from that contract that I would pay you 200.00 regardless if it was 5 inches or 6 1/2 inches snowfall. I am I missing something?
     
  11. TLS

    TLS PlowSite.com Addict
    Messages: 1,425

    No, but they may be.

    I've never had a complaint in the past 15 years that I've been plowing them.

    Sometimes being slightly vague can have its benefits.

    That $20-30 here or there isn't going to bother a company this size.
     
  12. DadnSon

    DadnSon Junior Member
    Messages: 20

    Or, you could do what I do. I have this witten on my contract:

    There will be an additional charge of 20% per inch for snowfalls of 5" and above, for seasonal and per push customers.
    (You can charge whatever percent you would like as well as depth.)

    Ex: at your price of $275 it would be an extra $55 for each inch at 5" or more.

    It saves me the hassle of breaking down prices by inch range and the customer still knows what the fee will be.
     
  13. plowking35

    plowking35 2000 Club Member
    from SE CT
    Messages: 2,923

    We hated these issues of bidding 2-4 4-6 and so and so forth. What we do now is charge x.xx per 3" of snowfall. No more confusion.
    Dino
     
  14. ford250LDMaster

    ford250LDMaster Member
    Messages: 62

    one of my lots

    1-9 $408.90

    10+ 45.00 per inch or any part thereof


    another

    1-3 $75.00

    3-6 $110.00

    6-12 $175.50

    12+ $25.00 per inch or any part thereof


    all prices are within a 24 hour period.the storm we had last week went on for over 2 days.we got 4 inches one day then the next day we got another 4 inches.so on that first lot i charged them $408.90 twice
     
  15. TLS

    TLS PlowSite.com Addict
    Messages: 1,425

    ford250LDMaster,

    I'm curious as to your $408.90 and $175.50 pricing amounts. Why not $410 and $175?

    The $408.90 one sounds like a "Price Is Right" bid, and why the extra 50 cents on the $175.50 one?

    If I were a business owner and I got a quote from you and it was down to the penny like you have it, I'd wonder what the story was.

    The only numbers like that for any of my accounts are the RockSalting prices. They go by the pound.

    I guess I'm just kinda curious, thats all.
     
  16. landscapingpoolguy

    landscapingpoolguy Junior Member
    Messages: 21

    i make it very simple flat fee per push every 3 inches

    very simple

    Chuck
    Perfect Property Services Inc.
     
  17. ford250LDMaster

    ford250LDMaster Member
    Messages: 62

    i have found that making up a number like 408.95 is easier on the eyes.last year i put bids in at places for 500 or 600 per storm and people jumped a bit.like the big lot i have me and easthavenplower figured 400.00 for up to a foot.so i kind of thought that was a big number so i knocked it down to 385.80 before tax.after tax it came to 408.95.not bad for 2 trucks and 45 minutes worth of work.places i put bids into last year giving straight numbers 150 300.i gave them new bids this year and did the same thing to those and landed all of them.
     
  18. TLS

    TLS PlowSite.com Addict
    Messages: 1,425

    + TAX???

    Must be Connetaxut?

    I thought PA was bad taxing lawn mowing! We are tax free on plowing and salting. At least I think we are!? I haven't heard any news on it. Supposedly its a "NEED" not a "WANT" like lawn mowing.
     
  19. KatWalk

    KatWalk Member
    Messages: 83

    TLS....the breakdown looks fancy and I am sure that Indianabc appreciates it but can I ask you something? Why the incocistency in price jumps? $210-$220 is ten bucks. $235-$250 is $15 ..$250-$275 is $25....$300-$330 is $30 etc. etc. Then you go back to a $20 jump from $330-$350??? No one has questioned this in fifteen years. Just curious about the errratic price jumps.


    Here's how this one breaks down finer....

    2" = 200
    3" = 210~
    4" = 220
    ********
    5" = 235
    6" = 250~
    7" = 275
    ********
    8"= 300
    9" = 330~
    10"=350
    ********
    11"=375
    12"=400~
    13"=425
    ********
    14" starting at $475 and up in a scaleable rate.

    Does that clear things up a bit? [/B][/QUOTE]
     
  20. TLS

    TLS PlowSite.com Addict
    Messages: 1,425

    Katwalk,

    The prices with the ~ are the only ones that appear on my contracts. I simply rounded off and filled in the other "exact inches" as a quick example.

    $210-$250 = $40 jump

    $250-$330 = $80 jump

    $330-$400 = $70 jump

    So the reason for the last lesser $70 jump is simple. I wanted the highest Dollar Number on the sheet to be $400

    It "should" be in the upper four hundreds, or close to five, but that makes the "14" & UP Priced according to storm in a similar scale" MUCH harder to sell if the previous number is close to five hundred bucks. It's all in the "appearance" of the numbers. Thats why I was questioning the motive of Ford250LDMaster and his funny odd numbers.

    Anyways....

    We USUALLY we get a lot more 13+" storms that I usually don't worry about that particular range.

    Most of our storms are in the 2-4" with the next biggest average snow being in the 5-7" group. For some Odd reason, the 11-13" group either falls short, or far exceeds it.

    But, to answer your question, no. No questions on contract verbage or Invioce pricing in 15 years.