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contracts residential

Discussion in 'Introduce Yourself to the Community' started by mean green 24, Nov 1, 2010.

  1. mean green 24

    mean green 24 Junior Member
    Messages: 28

    I have quite a few customers by the triip but need help with the contract figures.I'm in southern tier ny but first year so when I give someone a contract how many weeks how many trips if a driveway is 30per trip what would that be under contract for a year? Any help guys would be great thanks!
     
  2. ajslands

    ajslands 2000 Club Member
    Messages: 2,033

    You Should probably call up a lawyer as opposed to the good people of plowsite. A lawyer will be able to help you or do it for you; put all the legal terms in.
     
  3. SharpBlades

    SharpBlades Senior Member
    Messages: 366

    ummmm... not sure exactly what you are asking, but I think you are asking how many trips on average for a season? You could probably get away with using 30 pushes/season in rochester
     
  4. mean green 24

    mean green 24 Junior Member
    Messages: 28

    Ok I was way off I was thinking like 20 thank you
     
  5. mean green 24

    mean green 24 Junior Member
    Messages: 28

    Why is it that when I do the math on 20 trips customers (most) complain and say they got a bid half of my price? Do I drop the price or tell them to get the cheap guy? It seems like its our market out here or I'm overpricing everything. Customers are fine per trip price until I give them a contract.
     
  6. SharpBlades

    SharpBlades Senior Member
    Messages: 366

    What is your price if you don't mind me asking? and what size drives are they? PM me if you don't want to post it in the open
     
  7. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    So I assume you are taking the 30 dollars per push multiplying it by 20 pushes, and trying to get 600 dollars for the season, correct? Usually you get a discounted rate when you give seasonal pricing, because you are asking the customer to pay you upfront. This is what builds capital to pay for your fuel, insurance, and so forth up front, instead of having to wait untill you get paid to be able to pay for these things. Plus there is also a gamble to the whole seasonal pricing. If you have a light winter, your still asking the same from your seasonal customers, so they lose. However, if you have a heavy winter, your the one that looses out. So when you discount your seasonal pricing, you have to try and get them to sign a multiple year contract, and bet on the law of averages. I am not from New York, I don't know your price structures, but from what I have heard, and seen on this site, the average seasonal contract is going for about 300 to 350. Good luck
     
  8. Wayne Volz

    Wayne Volz Senior Member
    Messages: 694

    Nice

    You are getting a lot of information to base your decision. I thought I would add mine. What is it costing you to do the job? Have you calculated your actual cost per trip, per drive based on your overhead and expenses?

    If not you may want to consider that first and then estimate the number of services per season.

    Good Luck.

    If you don't have an accurate way to do this calculation, check out our website at www.profitsareus.com and check out our CD titled "Know why you charge what you charge" It takes the guess work out of all your estimates for any service you provide. Snow, mowing, landscaping, etc.