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Contracts-salt shortage

Discussion in 'Business Fundamentals' started by Timbercrk1, Sep 28, 2008.

  1. Timbercrk1

    Timbercrk1 Member
    Messages: 63

    Hi guys,
    In my area they are already short on salt. I was quoted $75 a ton. This is my first year of buying salt for my biz. I was a subcontractor in the past and they bought the salt. Is there a way in the wording of your contracts to protect myself if the price of salt doubles or triples or is unavaliable? Like a possiable surcharge or how do you guys do it?

    Thanks,
    Ray
     
  2. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    there is no shortage that i can see..... at first every one was claiming there was,,,, and they didnt know if they could get us all salt...

    now they can get us what ever we need, just have to be willing ot pay the price
     
  3. Timbercrk1

    Timbercrk1 Member
    Messages: 63

    reply

    Well here in NY I know they are short already. How can I protect myself if I bid with the prices I am getting now. What do I do say the price doubles or I cannot get my hands on any towards the end of the season?
     
  4. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    You could put in an escalating clause in your contract that and increases will be borne by the customer.
     
  5. Plowin in VT

    Plowin in VT Senior Member
    Messages: 233

    You need to price your salt high enough to still make money if salt does go up by 2-3x. What will you do when they ask you for proof that the price went up? It's hard to explain to a customer how you need to increase your charges because salt went to $150/yard when you use much less than a yard on their lot, and charge them $225.

    Make sure to put a clause in the contract allowing you to use salt/sand mix at the same charge per app., just in case.
     
  6. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    why would the customer let you use mix for the same price, im sure they know sand is cheaper than salt

    that and i guess i dont understand the use of sand other than on a gravel lot or road
     
    Last edited: Sep 28, 2008
  7. powerjoke

    powerjoke PlowSite.com Addict
    Messages: 1,341

    yeah their is one sure fire way to gurantee youre cost's and C.Y.A.......BUY IT BEFORE YOU PROVIDE ESTIMATES! other than that you have to have a really high quality salt broker....if thier is such a thing :roleyes:
    PJ
     
  8. Grisi24

    Grisi24 Senior Member
    Messages: 166

    Timbercrk1 have you looked into Salt here in Oswego, NY??? Worked out well last year...