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Am I charging right for snow removal?

Discussion in 'Bidding & Estimating' started by Jasonnau, Nov 15, 2005.

  1. Jasonnau

    Jasonnau Junior Member
    Messages: 10

    Just out of curiosity, I want to get an idea if I'm bidding too high or too low. Last year I billed out snow removal at 65.00/ hr. This year I'm going to 70.00 also I'm imposing a 1 hr minimum for commercial properties. Also, I charge twice the price I pay for salt and calcium. Now, I charge the the same price by the hour for all snow removal activities ie: shoveling, plowing, salting, snowblowing. Am i charging this out at a reasonable price? So far, I have two of my commercial accounts back, but, I'm bidding on several more, and I don't want to loose them by being too high. I know this price probably changes regionally.
     
  2. SnowGuy73

    SnowGuy73 PlowSite Fanatic
    Messages: 24,868

    Sounds good to me. :nod:
     
  3. Mick

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

    For commercial, you're probably in the ball park. The test is to look at the results of your bids:

    If you get them all - you bid too low.

    If you didn't get any of them - you bid too high.

    All other things being equal, every contractor in the area will get roughly the same amount of work - called market share. A bigger company with more exposure or a company that has been in business longer can expect more of the available work than a small or start-up business. But everybody should still get some.
     
  4. stumper1620

    stumper1620 Senior Member
    Messages: 222

    not meaning to be picking on you, but, I prefer to never ever call plowing, shoveling or blowing: "REMOVAL" that is a word well reserved for a loader moving piles off premises. technically if you call it removal it means removal.
     
  5. hillmin

    hillmin Junior Member
    Messages: 26

    Great point stumper - For 20 years I've called it "clearing".
    Mick -that cracked me up.
    Jasonnau - Might be in the park down there. Average around our parts is $125.00 per hour.
     
  6. NJ Plowman

    NJ Plowman Senior Member
    Messages: 799

    Sounds like you are doing pretty good to me... :drinkup:
     
  7. lawnmedic

    lawnmedic Senior Member
    Messages: 703

    Most of my jobs are priced at a per push(these usually take 90 minutes or less). For the big jobs(on site any where from 2 to 6 truck hours), I am charging 85.00 per truck hour.
    Salt costs this year are at 3.50 per 50 lb bag, and i am charging 9.00 per bag
     
  8. justme-

    justme- 2000 Club Member
    Messages: 2,138

    Very good point Stumper. I charge $65/hour commercial rates for plowing with a truck and $100/hour if a loader is needed (because I have to have one hauled in of which I don't own). Removal has a hauling fee/disposal fee in addition to the loader fee's as well.
    Prices are reagional, but that sounds about right to me.
     
  9. Jasonnau

    Jasonnau Junior Member
    Messages: 10

    Thanks for the information. I think I could raise the price of salt a little bit. After asking around, most of the guys around here charge around 75.00 per hr for snow removal. But, I'm the lowest one on the price of salt. I did leave that as a variable to the customers. Stating "the prices of de-icing agents may fluctuate during the season due to supply and demand".
     
  10. THE BOSS 1975

    THE BOSS 1975 Senior Member
    Messages: 120

    i bid my jobs on an hourly basis of 125.00 per truck and the salt i charge double my cost that way it covers going to get it and also the equipment needed to disperse the salt..i think your in the ball park ,i don't do this to not make money..I can starve just fine by myself !!!!
     
  11. Stoney

    Stoney Member
    from NW OHIO
    Messages: 37

    I pay $3.80 a 50lb bag for salt from a wholsaler that always has it and I charge $.30 a lb spread. Thats over $11.00 a bag profit.
     
  12. rfed32

    rfed32 Senior Member
    Messages: 473

    i think everything sounds good other then paying $70 for shovelers...around my area they get $15-$20 and if someone is in your truck they get $25-$30 but everyone else sounds right...maybe even give the guys on blowers $20-$25 unless its their own equpt.
     
  13. prizeprop

    prizeprop Senior Member
    Messages: 135

    I'm just curious. If its your operation and your billing out @ $70..00 an hour, what are subs in your area making per hour?