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40+ inches one price

Discussion in 'Commercial Snow Removal' started by lawnsrusinc., Oct 22, 2009.

  1. lawnsrusinc.

    lawnsrusinc. Senior Member
    Messages: 141

    Not sure if you have been having this same issue with the economy, and snow contractors doing work for pennies on the dollar... But ppl in the SE wisconsin area noticed that Winter services is plowing places for a seasonal price no MATTER how much snow we recieve. Personally we have lost 5 large commercial accounts to this. How can a company that only hires subs. assume this risk??
     
  2. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    Not really that much risk. Is there?
     
  3. lawnsrusinc.

    lawnsrusinc. Senior Member
    Messages: 141

    2008-2009 season 78 inches
    2007-2008 season 119 inches
    2006-2007 season 68 inches
    2005-2006 season 53 inches
    2004-2005 season 52 inches

    with a season average of 48 inches

    How can you give a cheaper price and assume all liability of salt and plowing at below average price?
     
  4. Bajak

    Bajak Senior Member
    Messages: 999

    What is really the difference between 40" and 48" through out a season? Really it is sweet F all. I used to be on the per push or hourly band wagon but in recent years I have found that seasonal is nothing to be afraid of and is probably the most stable pricing structure for both the customer and the contractor. We can both budget without any real big surprises. Take your and /or their fixed costs of business into account. Insurance is a fixed cost, Mortgages, Rent, Leases are fixed costs and our lifestyle expenses, for all intensive purposes, are fixed costs. These are the big ones for all of us and need to be carefully budgeted.

    So what I plow 20 hrs more than expected this winter I lost $XXX.00 in extra fuel expense. Everything is still paid for . Oh I plowed 20 hrs less than I expected this winter I gained $XXX.00 in fuel savings. Everything is still paid for. If I were exclusively dependent on the weather, being hourly or per push, it would create a totally unstable situation for my business, my family and my mind. If it storms it storms, if it doesn't it doesn't. I just hope that it is a close to average winter over all.

    As for all these big time maintenance companies coming out of nowhere wanting to sub out all their work, read the contract carefully, stroke out and amend anything you don't agree with. If they don't agree with you, why agree with them. Walk away and don't worry about it.
     
  5. Brant'sLawnCare

    Brant'sLawnCare PlowSite.com Addict
    Messages: 1,754

    I was asked to give a monthly bid for a condo association this year. I was kinda excited, because I woulda had a certain amount coming in each month weather it snowed or not. It just so happened to be an amount that woulda covered my monthly bills. I didn't get the job, but that's because I am newer at this, and it takes a while to build trust and reputation.
     
  6. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Actually I think your profit is bigger if you have a few big storms then a bunch of small ones.
     
  7. Premier

    Premier Senior Member
    Messages: 274

    I would have to agree,

    I shoot to get 1/2 of my contracts per push, the other 1/2 seasonal, that way if we get way over the average, i have addiotional monies comming in to help cover extra expences. so far it works out quite well
     
  8. 2COR517

    2COR517 PlowSite Fanatic
    Messages: 7,115

    This is just about where I am at. I already have some of my seasonals on three year deals which helps alot. If you get pounded one winter, you've got the other two to offset it.
     
  9. Eronningen

    Eronningen Senior Member
    Messages: 442

    I am starting to consider going to monthly for next year for a couple reasons. One being more stability in even pay for both sides of the table, both knowing whats coming or going as has been mentioned.
    The second reason is I think one could get more and better jobs by using the monthly or seasonal contract. I think it takes so much of the gray area out and it is what it is.
     
  10. chtucker

    chtucker Senior Member
    Messages: 618

    I did it... and I was ok with it... we get 200-300" a year