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Getting into business need advice

Discussion in 'Introduce Yourself to the Community' started by Bcarlsno, Jan 6, 2009.

  1. Bcarlsno

    Bcarlsno Junior Member
    Messages: 12

    Few questions: 1. as for insurance, how much of liability coverage should be carried? The place I live in is a small town and I can't see rolling out for less than $60.00 per hour? But people are doing it for considerably less $10-20. No business here adds salt to their parking lots with others plowing, except directly in front of the store and downtown half the sidewalks are plowed and half aren't. Which brings to the question. should I a) just do it for my year round contracts and only invest in a 4wheeler with plow attach and add it in to the cost for yearly rates b) get set up properly and provide the proper service and hope and pray to get enough contracts to cover costs. Right now I am busting my A** with a shovel and know what is needed for next season. But I can't see adding a plow to a truck and the extra wear and tear a plow takes when the average rate is $25 per hour, and not even be able to cover costs. I've figured the lowest I could go would be 60 no salt and/or sand or 65 with salt. My main question there would be (long and drawn out) should I for at least the first few years add the cost to the yearly expenses and add it in to the rates for lawn maintenance contracts and with quality service build it up the clientale for winter that would pay the higher rate needed to properly justify the costs.
  2. hydro_37

    hydro_37 PlowSite Veteran
    from iowa
    Messages: 3,790

    For $25 an hour I would stay home and avoid the hassles. Your operating cost will be more or close to that.
  3. Bcarlsno

    Bcarlsno Junior Member
    Messages: 12

    Thanks Hydro, Yeah if I planned it out for year the year round contracts and added it all into my yearly expenses it would be just under $25 an hour but if I just planned my snow removal equipment for 3 months out of the year the cost almost doubles. I figured what I will do, I have summer work planned to cover my expenses during the winter (without working) then just do my yearly contracts than anything else charge the different rate. That way my regulars don't get hosed because they will have been paying for the equipment during the growing season.