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Discussion in 'Commercial Snow Removal' started by AllSeasonsAllReasons, Feb 20, 2001.

  1. AllSeasonsAllReasons

    AllSeasonsAllReasons Junior Member
    Messages: 11

    Ok i have another question. I have three Taco bells i do here complete from sidewalks to salting the driveway and of course plowing. This year was my first year for them and they are already wanting another contract for next season.But this year they want me to bid it as a set amount every month regardless of how many times i plow for that month I would get paid the same! Is this good and how the heck do i bid like this and not lose my but?? Thanks Cory
  2. Alan

    Alan PlowSite.com Addict
    Messages: 1,393

    It's called "averages". How many times did you plow this year? How did snowfall compare to the average for your area? Once you know how many times they will need service in the average year you multiply that by the cost for service and there's your number. Maybe add in a percentage for safety, but that's all there is to it. Some years you eat the bear, some years the bear eats you but if you do it right it's a nice secure feeling to know you will have a set amount of income regardless of what the weather does to you. Only snag can be that too many contract accounts in a heavy winter can hurt you, you really should keep a mix of contract and per push accounts. That way you're covered in both a light year and a heavy one.
  3. MJ

    MJ Senior Member
    Messages: 129

    Cory, if you're going to do that, you'd be better off if you can get at least a three year contract. That way, if you have a heavy snow fall next year, they can't bet the averages and want to go with a per push the following year. I'd only do a one year that way if I wasn't sure of whether I want to keep this place.

    Good luck,
  4. 66Construction

    66Construction Senior Member
    Messages: 315

    I plow three banks about the same size as a taco bell. I signed a two year flat rate contract. The contract specified plow at 2" or more and every 3" during business hours. I took the average like the other guys 64" and divide by 3. I come out with 22 pushes. I figure my price per push + salt walks etc and multiply by 22 and that's my bid. I'll never hit the 22 pushes. The contract specifies plow during business hours and clear overnight accumulation by 7 am. The only time I plow these lots besides business hours and 7 are to reduce wear on the truck. Even if there's a heavy winter and you hit the number of pushes you still make out. It also leaves money for when you have to go back and clean up. Also you can make some money when they call for salt from an ice storm or something. Depending on the competition you may be able to get away with this. Also the flat rate keeps a steady income through the winter even though I just got Novembers money in late January. This is just my experience, in your market the price may not be right. If you can make these people happy they will remember you! Taco bell is connected with pizza hut and KFC!!