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Biding- PER HOUR v. PER SQ. FT v. HOW MANY INCHES

Discussion in 'Commercial Snow Removal' started by 4evergreenlawns, Nov 25, 2003.

  1. 4evergreenlawns

    4evergreenlawns Senior Member
    Messages: 552

    After reading several post it seems there are a few schools of thought about pricing jobs.

    1) Price the job based how long it should take using an hourly rate. Ex: 30min job- $80.00 per hour, bill $40.00.(just and example).

    2) Price the job after measuring billing by Sq. Ft. (1,000 Sq. ft. $5.00 per 100 Sq. Ft = bill $50.00.(again just an example).

    3) Price job based on amount of snow fall. 1-3, 3-6,6-10 or 2-4, 4-8, over 8, only as a per occurrence, or quote a monthly rate.

    4) Lets not forget about the clients that establish whatever performance requirements they think they want or need.

    So I have a few questions in mind when I am reading these post about pricing. Like, are these pricing methods regional, is there an industry standard, or does each company just try to sell their way of billing as the best way?

    I have been writing my own contracts for three years now after having plowed both as an employee and sub-contractor for several year and now having started my own full time lawn maintenance/snow plowing company. I have seems to found a price point that seems to gain new customers, retain current customers, get referral and make a profit. However, I am left wondering how do any of you establish a base line for pricing? I use a pricing method that was passed onto me from another contractor but, at the time he was doing all residential work and now I am only servicing commercial work. As I consider and deal with the growth of my account list (4 location in 2001/2002 one truck to 30 locations for 2003/2004 with two trucks and a sub) am I pricing correctly for the market and the industry??

    Sorry such a long post but, I know there are 100's of years of experience here and I have gained so much valuable information and I hope some of you in a similar situation can offer some insight and advice. That means if you are actually are in the habit of pricing business that I would like to hear from you. Thank you.
     
  2. CARDOCTOR

    CARDOCTOR PlowSite.com Addict
    Messages: 1,310