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Any Recommendations?

Discussion in 'Bidding & Estimating' started by coppertec, Oct 11, 2013.

  1. coppertec

    coppertec Member
    from calgary
    Messages: 52

    Hey guys,

    first time plowing this season. ive picked up a 2011 chevy 3/4 ton, and i am getting a 9 1/2' MVP plus plow in the next week or so. I am financing the equipment at about $496/month or $5952 a year. insurance should be 1722 a year.

    i havent filled up the tank on this truck before, but guessing from my f150, I would take a guess at $4000 a year.

    without factoring repairs, this brings me to $11,674 as a break even point.

    A) how much should I factor in as a cushion per month/year in repairs?

    B)how much should I factor in for my own wages as either a dollar value or % wise?

    B) how much should i be charging as a sub per hour based on this info?

    i have a chance to do some sub work for someone this year on some "medium sized" lots, but I am worried the guy might take advantage of me. my last option is to just start cold calling (pun intended) a bunch of companies off of kijiji and see what they'd pay. i know it varies by region but does $100-130 sound reasonable?
     
  2. woodchuck2

    woodchuck2 Senior Member
    Messages: 304

    You gong at this self employed i take it? Why not just try to pick up your own accounts instead of being at the mercy of others? You have some considerable overhead no less your time. IMO it is hard to make money for someone else unless your just driving and using their equipment. I have never tried subbing my truck for someone else and will not even consider it. At this point i have the truck, equipment, insurance and DBA, why not just bid the job and make all the profit. If it is too big, then do not bid it.
     
  3. coppertec

    coppertec Member
    from calgary
    Messages: 52

    mixed feed back it seems. i personally would like to be my own boss at this but i know i lack the experience and therefore the knowledge of what to charge/bid on my own. so ive been told i should sub. maybe a healthy mix of both subbing and my own contracts would be best? how do you guys go about quoting to gain a profit when you know what your overhead is like mine listed above? how should i learn to bid in my area? whats the kind of mark up/ labour i should pay my self?
     
  4. BC Handyman

    BC Handyman PlowSite.com Addict
    Messages: 1,867

    Being from your region, I'll tell you you aint going to get a rate like that as a sub, you would need to go get your own if you need those prices. Are you right in Calgary? Or are you in a surrounding city like okotoks?
     
  5. coppertec

    coppertec Member
    from calgary
    Messages: 52

    Yes, i am directly in calgary. I figure I am just going to have to call/email a bunch of powers and ask what the going rate would be for plowing for someone with my equipment. I'm at a bit of a roadblock
     
  6. BC Handyman

    BC Handyman PlowSite.com Addict
    Messages: 1,867

    Well being right in town adds the compitition aspect, I'd shoot for $80 as a sub, but prob get offered & have to take $60-$70.
     
  7. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I'm assuming your going to be snow only. So your insurance will be higher for your truck and GL That seems like a lot of gas for snowplowing. If you are financing the plow go for a longer term if you can. You can always pay it off early. Your wages is whats left over after your expenses are paid.
     
  8. cet

    cet PlowSite Fanatic
    Messages: 7,202

    Unless you do damage to your truck or plow all the repairs should be warranty at this point.
    Judging by all your question I'm going to assume you don't have the experience to look at a lot and figure out how long it will take to plow. IMO you would be best to go and plow for someone this year. It is kind of late to be bidding, I would think there isn't much left unsigned.
    For us to help you we would need to know how many snowfalls you would get on average and how many hours/snowfall you plan on plowing.
    These sites you want to bid, would they require salt or sand/salt and do you have a method to spread that.

    From the outside this business looks pretty straight forward but it is a little more complicated then that.
     
  9. coppertec

    coppertec Member
    from calgary
    Messages: 52

    Yes, as far as property management goes, I'll only be doing snow at this point. Maybe down the road if i get some loaders, ss's or heavy trucks I'll diversify.

    I probably did over shoot gas because I included non winter driving with it too, but this is a new go me truck that I have yet to fill, and my f150 is about 190$ to fill on premium.

    The truck and plow are being financed for 5 years starting this month for a purchase price of 26k. I'm hoping to pay as much as possible with it-even if i through every cent I make this season at it so I can be 100% free and clear for next.
     
  10. coppertec

    coppertec Member
    from calgary
    Messages: 52

    Yea I'm green at this so I think some trial and error will be in order. I think I'll be doing a mix of subbing and venture into my on bids. Calgary has a big market so I'm sure there's a few businesses that have yet to sign
     
  11. BC Handyman

    BC Handyman PlowSite.com Addict
    Messages: 1,867

    try to keep any new account/customers close to other lots you do, you dont want to be driving from the south to the east then over to west calgary. I'd say there are defintly a few places that still need a snow contractor, even though most of the big,easy lots are signed there will be lots of little places & resi. Prob is finding them.
     
  12. D&A Landscaping

    D&A Landscaping Junior Member
    Messages: 19

    Im a sub and I also have my own personal accounts. I started off by being a sub thinking that all the leg work would be done for me and ill I would have to do and start raking in the cash. I was way wrong. you are constantly chasing money and everyone points the finger to who you need to talk to too get your money. my going rate as a sub is no less than $70/hr and I charge $0.30 a pound for salt. as for my private contracts I get $120/hr and $0.40 a pound. I find I get paid much quicker with personal accounts too.
     
  13. cet

    cet PlowSite Fanatic
    Messages: 7,202

    If you are getting .40/lb for salt you must be doing some pretty small accounts. I can't see getting $1600 to drop 2 tons of salt on one site.
     
  14. D&A Landscaping

    D&A Landscaping Junior Member
    Messages: 19

    I keep my salt on property and they allow storage of my skid steer and dump truck indoors at two of my locations. also that's kind of high around here seeing how bulk is $50 a ton
     
  15. 1olddogtwo

    1olddogtwo PlowSite Fanatic
    Messages: 11,550

    HuH........?
     
  16. coppertec

    coppertec Member
    from calgary
    Messages: 52

    well i talked to some local guys today while i was checking out a used sander of theirs. found out they would say the typical sub rate for a truck would be about $80-100. they also said theres more money in sanding which typically goes for $150. not sure if they were selling me on the sander or not, but they said that was why they were upgrading.

    is this true at all?
     
  17. D&A Landscaping

    D&A Landscaping Junior Member
    Messages: 19

    never had a request for sand around here.
     
  18. BC Handyman

    BC Handyman PlowSite.com Addict
    Messages: 1,867

    Ya there could be good $ in sanding your own accounts, never heard of a sanding sub making that kind of coin as a sub, there is a good # of events that need sanding though.