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Am I charging to much?

Discussion in 'Commercial Snow Removal' started by stevo, Oct 26, 2006.

  1. stevo

    stevo Junior Member
    Messages: 1

    Im a newbie with a 03' GMC 2500. 7 1/2 western plow charging $125 per hour plus sand driveways $20-30. Im in southeastern CT
     
  2. Chefdrp

    Chefdrp Member
    Messages: 50

    If thats what you need to charge to make money then you are just fine. What are other guys charging in your same area and whats there overhead? Around my parts we get around $65.00 per hour. Salting is around 75 % of what it cost to do the plow job.
     
  3. Jay brown

    Jay brown PlowSite.com Addict
    Messages: 1,783

    around here hourly on commercial would be $50 and if it was per push it would equil out to about $110 per hour....
     
  4. framer1901

    framer1901 Senior Member
    Messages: 812

    A wise old man once told me charge as much as you can till you start not getting jobs, then re evaluate your prices.

    You have to charge what the market will bear.

    Just curious thou - "around here hourly on commercial would be $50 and if it was per push it would equil out to about $110 per hour" - how the heck does that math work?????

    You'll find that hourly rates vary across the country - here, if I go 20 miles NE, I could charge 50% more. I see people say they are charging 200/hr - do they plow 5 or 25 times per year?? I mean seriously, the areas like the UP in MI probably plow what, 30-40 times a year, while Cinci OH might do 7 times.............. It's like the $175 McD's..........
     
  5. EnviroTeam

    EnviroTeam Member
    Messages: 71

    I would guess what he means is that the rate is $50/ hour if you are quoting for a contract and $110/ hour if you don't have a contract and are just going as needed..
     
  6. EnviroTeam

    EnviroTeam Member
    Messages: 71

    I would guess what he means is that the rate is $50/ hour if you are quoting for a contract and $110/ hour if you don't have a contract and are just going as needed.. if that is it though that is one heck of a discount for taking the contract....:dizzy:
     
  7. LLM Ann Arbor

    LLM Ann Arbor Senior Member
    Messages: 876


    Im so tired of hearing this...No offense.

    But what if he only "needed" to charge a nickle? Youd be back here calling him a low baller.

    Yes. 125 an hour is a good rate for basic equipment,and we all should adopt a reasonable and fair standardized price or as close as we can.


    I hate it when you guys go off on this you need to charge what you need to to profit baloney.


    Drives me bonkers.
     
  8. crazymike

    crazymike Senior Member
    from Toronto
    Messages: 639


    the term lowballer is just an excuse for people who can't bid properly or don't have enough drive to go out and get more.

    There are dozens and dozens of "lowballers" around here and lots of us seem to make decent money.

    You charge what you think you can get away with. If someone bids lower than you can afford to do it, so be it, get another place. If they do it lower than they can afford, they will be gone.
     
  9. Jay brown

    Jay brown PlowSite.com Addict
    Messages: 1,783

    what i ment was we if they want an hourly charge, we bill $50 (to compete). if they want per push price, usually a $55 per push lot will take half an hour. this is our going rate here. typically(not us) the hourly rates get padded to make up the loss.
     
  10. Daner

    Daner PlowSite.com Addict
    Messages: 1,187

    Put It this way...Remember what It cost to run your truck/trucks...iF YOU LOWBALL...your looked at like a sucker:gunsfiring: :gunsfiring: ...Your out there to make money...NOT to get up a 3 am In the morning for peanuts...just to run around town and tear your stuff up In storms etc...CHARGE them...Get the money that you deserve.
     
  11. LLM Ann Arbor

    LLM Ann Arbor Senior Member
    Messages: 876


    I agree, and trust me. I want top dollar, and charge same, and dont drive a 40,000 dollar rig, have three kids and a wife with a creditcard fetish, and realize there will be healthy competition out there. I hate to see such huge discrepencies and differences in prices, and I do think that certain equipment demands a certain worth per hour. It's not a nickle to 125 dollars per hour.

    But the fact of the matter is, is that some guys have low expenses. And if you dont have insurance Im not interested in what you have to say, yet insurance isn't that big of our expense when you boil it down.

    But it just bugs me when someone genuinely asks whats "the going rates" and expects to hear a price range with a relatively small window, be told that its up to you depending on what you spent on breakfast, which is basically what they are being told.
     
    Last edited: Oct 27, 2006
  12. Quality SR

    Quality SR PlowSite.com Addict
    Messages: 1,828

    I am new at this

    I hope someone can help me out i have to fill out a contract for a storage center, i have to plow the main parking lot (which is aprox.10 spaces) and the rear lot which is aprox. 1000' of road with 2 structures, also snow must be piled in the very rear of lot next to dumpster. Sanding will be done at the end of every push, along with clearing of store front,sidewalk,and aprox 60 garage doors and enterance doors.
    here is my problem i normally charge by the hour, but they me to base my price per inch!!!
    1"-3", 4"-6",7"-9", and 10"12" to plow and to snow blow. And the want a price to sand.
    Like i said i am new i have been doing this for about 5yrs and this is my first contract that is like this.. thanks :help:
     
  13. Grn Mtn

    Grn Mtn PlowSite.com Addict
    Messages: 1,644

    Welcome to PlowSite, now repost in the bidding and estimating forum and not hijack this thread that is rapidly going down-hill:D
     
  14. Quality SR

    Quality SR PlowSite.com Addict
    Messages: 1,828

    thanks for your reply new to web site..
     
  15. Mark Witcher

    Mark Witcher Senior Member
    Messages: 604

    If you can get $125 an hour for a 7.5 ft blade, more power to you. IMO thats too much.
     
  16. jcesar

    jcesar Senior Member
    from Mi
    Messages: 492

    I agree 100%
     
  17. Rcgm

    Rcgm Senior Member
    Messages: 613



    Is this your own property or are you sub? If you are getting 125 a hour as a sub with a 7.5 blade I would say you ar edoing very very well.Because people that pay subs pay on what kind of equipment you have.But if this is your own property what does it matter if you have a 7.5 blade you could have a 4 foot blade I doubt they asked what size your blade is.But when we do by the hour here we charge 100 per truck per hour.

    RCGM
    Brad
     
  18. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,445

    Do you guys bid jobs by the HR?
    Do you let your customers know how much you make(charge) an hr?
    Or are you just trying to figure out a wage to pay an employee?

    Example, I bid a job for $135 a push not an hr,
    If it takes me 45min or 1 1/2 hr I make $135.
    Now, if the costumer was told $135 an hr, I would have to change my price every time I plowed. The customer would be watching me all of the time trying to get me to plow faster.

    some time has passed and you have become more proficient at plowing and have invested more money in equipment and that will cut your time by 1/3, Are you going to take a pay cut?

    I look at it as, how much do I gross at the end of the route, not how much I make an hr.