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cost of operation

Discussion in 'Commercial Snow Removal' started by npswi, Apr 16, 2003.

  1. npswi

    npswi Junior Member
    Messages: 16

    I live in Northern Wi. My local township still plows snow on a yearly contract basis. Ususally they charge about $120.00 per year for a 600' long driveway w/ turnaround. Averaging about 10 pushes a year.

    At our town annual meeting last week they spoke about getting out of plowing. Yes, I know I can also force them out by bringing up a no compete w/ business angle. Anyway, I have told them that they are not even breaking even on costs if considering all the factors. This led to a motion to look into what it cost them to operate equipment. i.e Cat End-Loader, 3 Dump trucks, and a Chevy 3/4 ton w/ Boss straight plow.

    My question is on how to figure these costs. Does anyone know of a resource where equipment cost of operation is broken down? Of course, I would them have to add wages, insurance, and so on.

    Your help would be great......
     
  2. GeoffD

    GeoffD PlowSite.com Veteran
    Messages: 2,266

    Here is a quick run down on cost: At least in Maine

    3 Single Axel Dump trucks
    With plow, wing, required dot lighting, sander of some sourt.

    1 truck cost about 100,000 set up

    So 300,000 before volume discounts

    Cat loader, depending on the size between 100 and 150K

    3/4 ton pick up truck 30K

    Sand/ salt sorage building a shop area at least 500K closer to 1 million to do it right.

    Wages:

    4 guys full time

    1. Foreman or Director 40 37K before ot paid at 16 dollars an hour

    3 Equipment operators say 13 dollars each 28K each before OT 82K for all 3

    Overtime account figure 20K for 4 guys.

    Shop equipment: 50K

    Fuel say 15,000 gallons a year.

    Utilities ???

    Insurance and retirement, depends on what you guys want to off, most states have programs for towns.

    So very rough and very basic:

    1,649,000 to 2 million a year.

    Your town would need a bond

    Geoff
     
  3. GeoffD

    GeoffD PlowSite.com Veteran
    Messages: 2,266

    hmm,

    read that all wrong. Thought you guys were hiring out someone, to do your road plowing.

    Kinda hard to figure out operating cost with out know you market.

    Geoff