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Bulk Salt, $$ Return $$

Discussion in 'Ice Management' started by Vaughn Schultz, Mar 9, 2005.

  1. Vaughn Schultz

    Vaughn Schultz PlowSite.com Addict
    Messages: 1,565

    What profit do you look to get off spreading 1 ton off salt? :rolleyes:


    How much do you pay for a ton of salt :confused:
     
  2. SkykingHD

    SkykingHD Senior Member
    Messages: 368

    Bulk Salt

    I think you shift the money from labor to equipment to switch to bulk.

    Backhoe to load salt $8000- 85000
    Cover all building 4000- 6000
    Concrete floor 1200-1500
    concrete blocks to build walls 2000- 3500
    Bulk spreaders 3200-10000

    You have more through put but there is a cost. There is a post on here about bulk salt that gives the pros and cons.

    Oh don't forget the extra maintenance because of mixing salt with your equipment. You work for your profit.
    See thread on 2nd page, "Bulk Salt, $$ Return $$"
    Dave
     
    Last edited: Mar 9, 2005
  3. jax1013

    jax1013 Senior Member
    Messages: 114

    Bulk salt

    Grassbusters
    I pay $60 a ton..loaded thats up from $43 2 years and $50 last year..Unfortunately I have a V-PRO 8000 and have spent $296 in Dec 04 for a new auger motor. Last night tried to salt my complexes and the auger would not spin. Salt trickled out. Needless to say I couldnt do the route. One complex called up and got someone else to salt. They want me to pick up the bill. This morning I was at the equipment dealer..and he had to replace the auger motor...$256 He didnt charge me for labor...2 saltings in Dec, 1 in January, and the motor is toast. This VPRO is junk...To finally answer your question...I loaded up w/ about 2 yards and spread all of it today,over the remaining accounts. I figured the invoicing will be about $1200..not bad considering .. If only I had a good spreader it would be pretty profitable..I will buy a new Downeaster soon.. I hope this answers your post
    Good luck,
    Jack
     
    Last edited: Mar 9, 2005
  4. TLS

    TLS PlowSite.com Addict
    Messages: 1,425

    $137.50 for a Ton of eighty pound bags.

    $600 is what I charge to apply that Ton.

    So my profit is $462.50 for approx 1-2 hrs of work.
     
  5. Vaughn Schultz

    Vaughn Schultz PlowSite.com Addict
    Messages: 1,565

    thanks guys, keep em coming :waving:
     
  6. flykelley

    flykelley 2000 Club Member
    Messages: 2,124

    Grassbuster
    I pay $58.00 per ton loaded. I double that price to spread it. So I get $116.00 a ton spread. Next year that price will go up. I think I'm about $20.00 a ton to low. Jax I also have a snowex vpro 8000. I have not had one bit of problem with it so far, now take a deep breath I know all about the bad thing's with the V pro 8000, but I have been very lucky.
    No burned up motor's, no clog's nothing but around 20 ton's of salt without any grief yet. Knock on wood. But I do not like the spread rate, I feel that it need's more salt at a faster rate coming out of the auger into the chute. I also spray all the moving part's after I wash it with corrosion x. I may buy a different spreader next year, I really like the Curtis spreader, but it's kind of pricey.

    Regard's Mike
     
  7. SkykingHD

    SkykingHD Senior Member
    Messages: 368

    help with salt per ton

    There is a thread on here about this subject "help with salt per ton".

    sorry about miss naming it in last post on this thread.

    Dave
     
  8. Foz

    Foz Senior Member
    Messages: 119

    If you are spreading bulk salt... you most likely have $40-50,000 in a truck, $3500-6000 in a spreader, storage of the bulk unless you have a supplier close, labor for a driver, maintenance on the equipment. If you purchase plain bulk salt for around $50.00 per ton, you should charge at least $140.00 per ton applied. We also stipulate that our minimum charge is equal to 1/2 ton. We have just switched to treated salt and are using less salt (maybe 25 - 30% less) with better results and have raised our prices by 30% for treated material.
     
  9. TLS

    TLS PlowSite.com Addict
    Messages: 1,425

    So you bulk guys are only Netting $50-90 to spread a Ton of salt?

    Doesn't even seem worth waking up for that. Plus like others are saying, if you spread bulk, your overhead is much higher.


    Anyone in the NE charging more than that for bulk?
     
  10. flykelley

    flykelley 2000 Club Member
    Messages: 2,124

    Guy's
    Here in Lower Michigan the going rate for bulk salt spread is around $140.00 a ton. It's alot like snowplowing I might get $100.00 for a small 20 car lot here but somewhere else they might only pay $70.00 for a lot of the same size. Again it's location and how many guy's are doing it.
    I would love to get $200.00 or better a yard for salt but I have never heard of anyone getting that high of a price. It is faster than plowing, I'm in and out of the lot quick, the salt supplier is right around the corner from the house and all of my salt account's are in a straight line with 10 mile's of home.
    I just picked up a new Doctor's office and I salt the lower lot which hold's about 16 car's and charge $60.00 to salt it. I get a extra 1/2 yd now which cost me $28.00 and charge $60.00. I don't know how you charge anymore for something like that.

    Regards Mike
     
  11. echovalley

    echovalley Senior Member
    from CT
    Messages: 456

    WOW a half yard for a 16 car lot $50 or $60 to spread it.You guys are nuts we get $400 to $500 for a parking lot and we use about half a yard of salt.And we salt 2 or 3 times a storm.No wonder u guys aren't making any money
     
  12. flykelley

    flykelley 2000 Club Member
    Messages: 2,124

    I would love to get that kind of money but around here it is not going to happen. They would just not salt. Pricing is very much regional just like plowing. Now as for that lot I was talking about it is on my route, I go right past it so for 5 Min's of my time I make $40.00. I will take 100 small lot's like that any day of the week.
    How can you get someone to pay $400-$500 a lot for salting and only use twenty dollar's worth of salt? I need to move where ever you guy's are working. :salute: If you can get that kind of money great but it's not happening around here. Ok Lower Michigan Guy's what is your going rate for salt? Maybe I'm way to low but I have talked to a few guy's in my local area and they were all around $140.00 a ton spread.

    Regard's Mike
     
  13. TLS

    TLS PlowSite.com Addict
    Messages: 1,425

    Flykelly,

    How big is that 16 car lot your talking about? 5K sq ft? 10K sq ft?

    How much salt are you applying?

    I'd probably drop 4 - 80lb bags there 320lbs x $0.30/lb for $96

    Material cost $22

    Net Profit $74
     
  14. ibelee

    ibelee Senior Member
    Messages: 188

    It's like "flykelly" said...pricing is obviously very regional.
    I've been watching the threads about salt spreading for a while trying to figure out how my pricing stands. I do not spread bulk, only bagged. I pay $4.95 a bag and charge either 14.95 or 21.95 per bag($600-$878 per ton) depending on the contract. It looks like a lot of you guys spread a lot more salt than I do. I average from 1 to 1 1/2 tons per event.
     
  15. flykelley

    flykelley 2000 Club Member
    Messages: 2,124

    TLS
    I am guessing that I am applying around 500 pound's. I have only done this lot once since I just picked this contract up. The last guy failed to show up several time's. I did apply too much salt last time, I'm heading out here in a hour or so and pretreating this lot. I will have a better feel on the amount of salt use after today. 500 pound's of salt cost me around $14.00 for a net profit of $46.00. $60.00 is my minimum charge for salting a small lot and we go up from there.
    If this lot was not already on my way to the other job's I would charge more money. But pricing is regional whether we like it or not, you can only get what the market will bear.

    Regard's Mike
     
  16. TLS

    TLS PlowSite.com Addict
    Messages: 1,425

    Flykelly, I fully understand the regional pricing. It's amazing though how different areas of the country are cheap and expensive to live in.

    Bulk sounds like its great for you. You'd be loosing money if you had to do bagged and keep your per application prices. So that $20 cheaper salt that your able to get for that lot is $20 more in your pocket.

    I've learned a long time ago....Never price something cheaper by saying that "well, I'm already there, I don't have to charge them as much". That is YOUR secret. Don't let it affect your pricing. Estimate as if you had to make a special trip there. Any time savings by already passing by it is just a convienece or "extra fluff".

    If you have a "I'm passing along a good deal to my customer" feeling when your sending out your bills....your not charging enough.

    If you feel guilty when your sending out your bills, your probably making good money.
     
  17. Vaughn Schultz

    Vaughn Schultz PlowSite.com Addict
    Messages: 1,565

    Thats funny :D can I quote you in my signature on plow site ? :rolleyes:
    It would look like this ........

    ________________________________________________________________

    "If you feel guilty when your sending out your bills, you probably making good money". - TLS payup



    .
     
  18. TLS

    TLS PlowSite.com Addict
    Messages: 1,425

    Sure!

    On a lighter note though.


    Everybody's threshold for guilt is different. Guilt is what keeps a LOT of people on here from charging enough.
     
  19. Vaughn Schultz

    Vaughn Schultz PlowSite.com Addict
    Messages: 1,565

    Nice, thanks bud. :p
     
  20. fernalddude

    fernalddude PlowSite.com Addict
    Messages: 1,105

    TLS my price is about the same here all baged about 60-70 tons this year.Thats about 4 tons each time i salt. What gets me are the guys that dont throw there bags away and let them just blow away,the sides of the highway have hundreds along the road that just p$#@ me off. I unload my garabge at our staging areas i have eight locations to load salt out of plus i have a box truck running around to either fill on demand or restock bins on my routes. So each location gets there turn with the garabge . payup