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Contract Limitations??

Discussion in 'Introduce Yourself to the Community' started by creativedezign, Oct 2, 2009.

  1. creativedezign

    creativedezign Junior Member
    Messages: 21

    Im just writing up my contracts for this season. Most of my customers are seasonal contracted, I'm adding a limitations section to cover my ass, limiting it by a #of pushes...what is a reasonable amount of pushes to limit the seasonal contract by so that I don't get owned during a bad winter?
     
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    i base it on 25. But I don't care how much snow falls ,that's what seasonal means for me,
     
  3. kramer56

    kramer56 Senior Member
    Messages: 595

    I usually have average of 36-40 pushes here. I wrote in my contracts this to pay a surcharge if it snows over 14" at one time. last year we got them kinda snowfalls 7-8 times so it might help me this season as long as the plow stays up and performs.
     
  4. 2COR517

    2COR517 PlowSite Fanatic
    Messages: 7,115

    I think that's what seasonal means for everyone, especially the guy writing the check. If you can get a charge per storm after X storms, good for you. But I doubt the customer will go for it.
     
  5. creativedezign

    creativedezign Junior Member
    Messages: 21

    so you dont put any limitations in your contracts?
     
  6. Grn Mtn

    Grn Mtn PlowSite.com Addict
    Messages: 1,644

    when I first started most guys did limited seasonal of 10 trips, then it went up to 15, 18, then unlimited. but the big prob was when the price went from $250 to $199, well now its down to $99 unlimited:eek:

    so you can limit and cya all you want but the writing is on the wall for buffalo now, watch in 2 years you'll be $99 unlimited too.
     
  7. creativedezign

    creativedezign Junior Member
    Messages: 21

    so you do a seasonal price and then have a section saying that they have to pay extra every time you plow when it snows more than 14'' at one time?
     
  8. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Only limitations I have is no plowing plowing between May 1st to Oct 31st. But if it does snow I will go out anyways.


    There was a company that tried to limit the pushes,then charge extra lost a lot of customers.
     
  9. cubicinches

    cubicinches PlowSite.com Addict
    Messages: 1,412


    I agree. You wouldn't get many cutomers in my area interested in a contract with those limitations. You might as well be trying to sell them herpes. :eek:
     
  10. kramer56

    kramer56 Senior Member
    Messages: 595

    i put it in there but most likely will not charge my customers more since i increased their prices too since its been the same the past 4 years even when diesel fuel went way up. I only did the extra stuff for my residentials so maybe when they call cause they all want to be first and demand them to be done now they can pay for the aggravation lol.
     
  11. creativedezign

    creativedezign Junior Member
    Messages: 21

    haha yeah, i mean if it was close i wouldnt charge my customers really cus i dont have many that are big pains in the ass.... but i was just thinking of doing it to cover my ass just in case this winter is crazy
     
  12. 2COR517

    2COR517 PlowSite Fanatic
    Messages: 7,115

    This is all the more reason to try and get multi year deals. Just signed two apartment buildings for this year, and the next two. Five percent increases each year. I gave them a fair price. Now that's two fewer bids I need to worry about next year, one less thing for them to deal with. Even if we get hammered this year, I've got two more to help recover.
     
  13. kramer56

    kramer56 Senior Member
    Messages: 595

    like i said i won't unless a few drive me nuts like they have in the past. they call and say it measure 3.25" in their driveway and i get there to find with their same ruler and same spot they measured was 1.5 or 2" so they get charged 25 bucks each time they do it to me. and them are the seasonal ones that just think they are getting their money worth i guess. one said she wasn't paying it so when i didn't show up the next storm she had cash in the mail box lol. its amazing how poisonous a shovel is
     
  14. Jaysled

    Jaysled Member
    Messages: 54

    I saw an ad in the local paper for 99.00 unlimited, I was tempted to call them to see if there are any restrictons, ie size of drive # of trips.

    How can they make any money for 99.00 it has to be a scam??:eek:

    Jaysled
     
  15. augerandblade

    augerandblade PlowSite.com Addict
    Messages: 1,054

    tymusicWorking under contract without a "accumulated season snowfall limit" is risky. Basing it on a number of "pushes is stupid cuz you could be pushing a foot of snowfall each time. Lost a contract to a lowballer who is now working below market value with no seasonal snowfall limit. Best thing that happened to me so far.
     
  16. 2COR517

    2COR517 PlowSite Fanatic
    Messages: 7,115

    It's just cash flow. No profit so to speak, but money coming in at the beginning of the season. And if the guy dissappears after a couple storms, what are you going to do?

    Sue him?

    That's why Grandview picks up so many accounts just after Christmas.
     
  17. Jaysled

    Jaysled Member
    Messages: 54

    Are the guys from Rochester running into alot of people expecting to get unlimited trips or do you guys do the trip limitations? I don't get why people have to keep cutting prices, don't they want to put more money in there pockets, we need to learn to work smarter not harder for less money.

    Does anyone have a organization in there area that they belong to with other snow contractors that helps promote ethical business practices?? Like a industry trade group?
     
  18. creativedezign

    creativedezign Junior Member
    Messages: 21

    so you recommend a season snowfall limit? how many inches do you limit it at?
     
  19. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Join Sima this way you'll be one step above most guys,and put me down as your referral.:nod: it's tough to have one because guys come and go and don't stick around long enough to learn from their mistakes.

    www.sima.org
     
  20. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    If i said a 100 inch limit would that help? That's about an average winter in buffalo