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Does this pricing make sence ??

Discussion in 'Ice Management' started by ernest, Oct 20, 2007.

  1. ernest

    ernest Member
    Messages: 67

    I have 2 parking lots that are about 25k sq. ft.each and another one about 75k.
    They only want it salted if there icy conditions - it was only done 1 x last year
    by another plower. I'm use to pushing a fert. spreader so I thought I would spread it with my spreader. I was told to price it this way - take the price of my salt that it would take for each lot and double it and then add my labor.Does this sound right ?
    I used this formula for a 25k lot and came up with a price of 210.00 - seems really expensive .

    50# covers about 5000sq.ft. at16.00 per bag. x 5 bags = 80.00 x 2 ==160.00 plus 50.00 labor = 210.00
     
  2. LwnmwrMan22

    LwnmwrMan22 PlowSite Fanatic
    Messages: 27,997

    Your price per bag is over double, almost triple of what I can buy it at.

    50 lb bags at Lesco run me $7, if I keep my eye open at the big box stores I can get it at $5 / bag, once in a GREAT while even less.
     
  3. mrbrickman

    mrbrickman Senior Member
    from montana
    Messages: 138

    yeah as long as your getting material for under 8.50 a bag i usually charge 18 a bag of salt applied, and thats 50 pounders, not 80 or 100 pound bags

    calcium is 26 a bag, but can be as high as 36 a bag installed if its more expensive mag. it all depends on the material, theres people out there buying this orange stuff thats walkway melter and dirt cheap yet still charging 25 a bag to put it down

    that 210 price sounds fair, if a bulk salt truck came out you can bet his min charge is one ton applied, so 1 ton times 140 a ton, is 140 bucks, plus one hour truck time to and from the job, so another 100 bucks and youre looking at 240 there...thats the least id charge anyone if i had to do a small lot

    seems fair
     
  4. Bossman 92

    Bossman 92 PlowSite.com Addict
    Messages: 1,771

    For my area your really high, I figure my application rate at 750 lbs per acre. I can buy salt at $4.00 per 80lb bag.

    Bossman
     
  5. CNY Plow

    CNY Plow Senior Member
    Messages: 145

    you're really going to walk-salt 125,000 square feet for that price?
    you did say push spreader right?
     
  6. powerjoke

    powerjoke PlowSite.com Addict
    Messages: 1,341


    Why would you double it you are getting paid for the app.

    By the way if you double (or overcharge any) wouldn't you have to charge sales tax on the prof.:nod: so that must mean you all have a TAX ID#, Cause I DON'T but i don't inflate my salt price(material) only labor (no-sales tax) it sounds to me a good way to loose all the money you made and then some if you get caught and i am right, I AM NO C.P.A. so just my $.02
     
  7. ernest

    ernest Member
    Messages: 67

    I do have a tax # but you bring up a good point.
     
  8. ernest

    ernest Member
    Messages: 67

    Yea- the 2 small lots won't take more than 10 - 15 min.ea.,if that.
    Sometimes I'll push a spreader for 5-6 hr.s during lawn season in a day. With maybe 400k
    to spread it doesn't make since to buy anything motorized.Sorry I know this is a snow site
    but I just got carried away.
     
  9. cet

    cet PlowSite Fanatic
    Messages: 7,202

    Where are you buying salt from? $16 for 50 lbs. sounds like an applied price not a purchase price.
     
  10. Bossman 92

    Bossman 92 PlowSite.com Addict
    Messages: 1,771

    I'll sell it to him for that price. :D

    Bossman
     
  11. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,992

    Forget the material. It's your time, your billing isn't way off but the equation is a little segued. you should be making way more money for your time!

    It takes no time at all to do 25K with a machine, drive though and gone. Machine don't run for less then $150 plus material, salts under $60@ton. We sell it by the yard, easier to monitor in the field. One yard roughly equals 1800lbs (give or take based on size and moisture content) and sells for $125, with a $50.00 minimum so I'd wack the the 25K for 2bills and be gone, the 75K maybe 250 if I plowed it as well but 300 on a special trip. Lots of things enter in to pricing a contract. Your costs are not going be the same as mine, your area may be more/less competitive pricing wise then mine, too many things for my off the cuff, based on my costing on easy access, easy apply properties price it be used for more then an example.

    Your time that needs to be more productive $ wise. If you write the bill so time/material is secondary and the service is what the billing is about then as you grow, and usage becomes harder to track and time requirements go down, the cost of your service doesn't decrease with it.
     
  12. DaySpring Services

    DaySpring Services PlowSite.com Addict
    Messages: 1,065

    Maybe I should take a look at my prices. I charge $95/ton for salt. I buy it bulk for $32/ton.
     
  13. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,992

    Got to have a minimum service charge. It's cost the same to drive to/from and dump one cup as it does to spread1 ton.

    Wish we could find salt for $32@ton delivered