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bidding on some gas stations

Discussion in 'Ice Management' started by pvtwaggs14, Jul 13, 2010.

  1. pvtwaggs14

    pvtwaggs14 Member
    from nw ohio
    Messages: 51

    i am putting together my bid for plowing and salting 11 gas stations around my area they are all on one contract. I have done the math and came up with a price it seems a little low to me what do you guys think.

    I would be using 650lbs of salt if the salting is to be done after the snow plowing is complete it would be an extra $260 that would be $0.40 per pound of salt spread. If the salt is being put down before a storm or only an ice and the lots are not being plowed then I charge an extra $5 for every station to offset the fuel price that is already added in if I was to plow. that brings the total to $315.

    Do the numbers add up for they way you charge also or do they seem low. Any help both good and bad is better than nothing. Thanks for the help....

    Wes
     
  2. vt properties

    vt properties Senior Member
    from vermont
    Messages: 194

    260 for 11 stops seems way low. I believe that is what you mean. An average gas station size say 20 parking spaces would be 50.00 to apply bulk salt or a mix of both and say. I usually charge the same or close to the same for the plow price. I have never pretreated but have applied only salt in the event of ice conditions. I use bulk , so figure how mucch a ton or yard costs and figure it that way.
     
  3. pvtwaggs14

    pvtwaggs14 Member
    from nw ohio
    Messages: 51

    bulk salt today was 65 per ton picked up and for pre treating it works out really good for gas stations because it helps for when you plow because it keeps the snow from compacting and freezing to the blacktop. It is a trick that I learned from my dad, and I must say it works pretty well. when you break it down the bulk salt is .03 per lb and im charging .40 per pound plus $5 per station for fuel... It might still be a little low that why im asking for people to comment on it.

    Thanks
    Wes
     
  4. underESTIMATED

    underESTIMATED Senior Member
    Messages: 188

    So basically you're estimating only using 23lbs per station?
    $9.45 per 23lbs but you're charging them $40-$60 according to your spreadsheet?
    You're making a killing if that's the case.
     
  5. TCLA

    TCLA 2000 Club Member
    Messages: 2,699

    How did you come up with this number?
     
    Last edited: Jul 16, 2010
  6. underESTIMATED

    underESTIMATED Senior Member
    Messages: 188

    Chinese Math. :p

    650lbs of salt to be used between 11 stores = 59lbs/store

    $.40/lb spread = $260 as posted.

    $260/11 stores = $23.64/store.
     
  7. dodge2500

    dodge2500 Senior Member
    Messages: 229

    I do two gas stations in my area and they each take at least 400# and they aren't huge but aren't small either. I have never seen a gas station that takes 59# JMO
     
  8. TCLA

    TCLA 2000 Club Member
    Messages: 2,699


    I see....Chinese math.

    Hmmmm.........

    And how is this a killing?
     
  9. ajslands

    ajslands 2000 Club Member
    Messages: 2,033

    Very random; but dosent OSHA require a poly cuttig edge for doing gas stations?
     
  10. TCLA

    TCLA 2000 Club Member
    Messages: 2,699

    I would agree with you there dodge. However gas stations do get away with smaller quantities due to the constant activity and distribution of product.
     
  11. TCLA

    TCLA 2000 Club Member
    Messages: 2,699

    I don't think so.
     
  12. underESTIMATED

    underESTIMATED Senior Member
    Messages: 188

    He's charging double, but only applying ~60lbs per store.

    Maybe not a "killing" per se, but $.85/lb spread = win.
     
  13. TCLA

    TCLA 2000 Club Member
    Messages: 2,699

    I must say you're true to your name.

    This service needs to be viewed and sold according to what it's value is.

    Salting any parking lot (no matter how small) for $23-24 per visit is devaluing the service.
     
  14. underESTIMATED

    underESTIMATED Senior Member
    Messages: 188

    Review his bid so you'll understand what I'm referring to. http://www.plowsite.com/showpost.php?p=1051055&postcount=10

    The average price charged is $50/station.

    He just said he's setting aside 650lbs of rock for 11 stations.

    I never said he isn't charging enough, I simply stated that he's doing well to spread that little salt for that price.
     
  15. TCLA

    TCLA 2000 Club Member
    Messages: 2,699

    I already know and realize the information on his other threads.

    I was rolling with your feedback on this thread. xysport
     
  16. pvtwaggs14

    pvtwaggs14 Member
    from nw ohio
    Messages: 51

    OK so update so you can tear this apart as well lol.....

    I went with a 30 min charge for any station. one of the stations that is $30 is just over 8,000ft2 but over half of it is covered. some of the larger accounts for one of which is $80.00 that one is just over 20,000... in the end ill be making more of a profit off the smaller stores and a smaller profit on the larger ones, I have figured about700 per time I spread, but can also spread up to1400 on the same price it all just cuts into the profit a little bit but its one set price.... total price is 550 per salting

    so now its time for math 550/1400 = 39 cents per pound

    with using my bulk spreader the pounds are not that easy to control that is why I bid it on the full price... they might get a little more than what they are paying for they might get a little bit less in the end their will be salt on the ground to get the mission done.

    payup
     
  17. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

    wes, Your not charging enough. As others already mentioned, its the VALUE of the service that your missing. Ie liability of a slip and fall. all stations are a pita to do. what about your time getting the salt and loading the salt? really look at EVERYTHING about your biz and what it REALLY cost you to run the biz. then make your price associated with your costs . around my neck of the woods i get double you rate for salting gas stations. TOO MUCH LIABILITY NOT TO PRICE THEM THIS WAY! HIH Mike
     
  18. mullis56

    mullis56 Senior Member
    from Indiana
    Messages: 824

    There was a yo yo here a few years back maybe (5) that took on ALL of the Speedway gas stations, like 100 of them....had same ideas he was going to make a "killing" yet he was charging enough to cover expenses....long story short last I knew he was in jail and was lucky he was as he didn't pay anyone that he subbed out.

    Bottom line, you aren't charging enough, go deVALUE another industry not ours!
     
  19. underESTIMATED

    underESTIMATED Senior Member
    Messages: 188

    Your expense(s) and his are two different animals.

    Criticize someone else and devalue their business.

    He asked for feedback on his rate, not Polly Pessimist.
     
  20. vt properties

    vt properties Senior Member
    from vermont
    Messages: 194

    excellent post ..