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Are my prices fair?

Discussion in 'Ice Management' started by HitchC&L, Jan 14, 2012.

  1. HitchC&L

    HitchC&L Member
    Messages: 57

    Im new to sanding/salting and I want to know if my numbers are fair and reasonable.

    I charge 75/hour to spread, plus material costs. With a 1/2 hour minimum ($37.50)

    Material:

    Manufactured Sand/Salt Mix:
    I Pay: 35/ton
    I Charge: 70/ton

    Straight Salt
    I Pay: 95/ton
    I Charge: 250/ton

    These prices are for commercial, I dont sand any residentials unless they really want it.

    I just want to know if these numbers are in the ballpark. Am I too high? Am I too low?
     
  2. Raymond S.

    Raymond S. Senior Member
    Messages: 513

    Sounds low. Price by the pound. $75 an hour to spread may sound good but my biggest lot takes all of 10 minutes to spread 800lbs and I get alot more than $75. If you're happy with $75/hr then just figure it into your costs per lb. No need to log time and material used, just set a per pound price and keep track of how much is put down...or better yet price per salting or sanding and apply accordingly.

    Edit: I missed your markup on the pricing. After figuring an application of 800lbs plus $37.50 labor (1/2 hr minimum) you're not too far off. Still easier for me to price per pound and per salting.
     
    Last edited: Jan 14, 2012
  3. HitchC&L

    HitchC&L Member
    Messages: 57

    Thanks for the response.I'm thinking next year ill go to a weight only price and see what I come up with.

    Anyone else have any opinions on my numbers?
     
  4. terrain1

    terrain1 Junior Member
    Messages: 21

    charge per pound and per application. its hard to justify 1/2 hour labor when salting because it doesn't really take that long. Just factor in your time to your application cost and send one number when billing no break down for time plus material. Your numbers look fair to me just make sure you are happy with them and that you plus your company make money doing it because without one the other doesn't exsist.
     
  5. Flawless440

    Flawless440 PlowSite.com Addict
    Messages: 1,543

    I have never herd of hourly on salt. If anything try to be high $200-$300 an hour. Are u new to salt???
     
  6. Canplow

    Canplow Senior Member
    Messages: 289

    Did you read the orginal post the first four word he said are "I'm new to salting" so I will anwser for him Yes he is
     
  7. Workaholic

    Workaholic Member
    Messages: 55

    Try to push for 75% + profit margin on salting. Remember a 6 hour night has to pay you for up to a week. Snow and ice should net you some large margins which spread out over the winter months ends up being average margins.

    We all have to pay for lots of rusty expensive equipment and liability.

    In my market, I rely alot on salting as it makes up for 70% of my winter income with plowing about 30% I live on the salting and the I consider plowing a spring bonus.

    For an example, In an average salting event, I spread 7 tonnes through my bed salter and I send out 2 guys to do a sidewalk route that uses 1.5 tonne. I bill just shy of $2700 for my per event salt contracts and I have 6 seasonal contracts that get salted in the same route. Which if converted from per season to per salt prices are based on about $900/per salt if we get an average winter.

    So about $3600 per event and it takes us 6 hours.
    Sounds like alot but at the end of the season it is not.

    Salt, labor and fuel add up to about $1200-1300. This excludes fixed overhead , incurance, rent, payments, etc.

    We get about 20 salting events per year and 8 plowing events. Average 4-5 saltings per month and 2 plows per month. This gives me a good income through the winter and pays the bills with a little left over.

    If I set my route up to make $80/hr before overhead. I would go in the negative roughly $5000 per month. And be in dept up to $20k by spring.

    Hope this helps. I know all markets are different but make sure your making atleast $150-$200 per hour after you pay for fuel and material. Then take that an go pay your bills and MAYBE you'll have a bit left over. You wont know til spring time.

    If a small lot takes $25-$35 in salt and about 10 minutes to do (with loading tailgate spreader) I would charge at least $80 per application
     
    Last edited: Jan 23, 2012
  8. Raymond S.

    Raymond S. Senior Member
    Messages: 513

    Workaholic...you've got it all wrong. You're actually making $600/hour. All the other stuff is just nonsense (wages, fuel, overhead, materials...) Man, you're really screwing people! :)