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Help needed with Seasonal pricing

Discussion in 'Business Fundamentals' started by SnoShark, Jan 9, 2007.

  1. SnoShark

    SnoShark Junior Member
    Messages: 29

    There are alot of threads regarding seasonal contracts. As this is my first season, I haven't given it alot of thought. Today I was asked to quote a job with a seasonal price. I have no idea how to figure the cost and really don't want to loose money or the contract. If anyone could share some ideas and/or sample contracts, that would be helpful.
    Thank you!
     
  2. cjasonbr

    cjasonbr Senior Member
    from Mass
    Messages: 635

    You have to figure avg pushes a season. Then multiply that by your per/push price. Unless people want to sign on for a 3 yr contract, i tell them that i will have to give them a seasonal quote of a slightly heavier than avg winter to avoid getting shafted with a huge winter. Under a 3 yr contract it would even out over the years - so i'd charge for a normal winter. Look on the NOAA website and try to figure out the avg percipitation.

    avg pushes per season x $ per push= seasonal price

    if you're really worried about it being too low pad it up a little ;)
     
  3. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    There are several ways, but all are based on averages. I use 12 pushes per year with a 3" trigger. Then I just figure whatever I'd charge "per push" times 12. Having multiple year contracts are best, again as they take advantages of "averages". Also, no particular need to have a higher price to account for the following years; have a built-in adjustment for inflation. You might also have a fuel surcharge built in, like an increase of so much for each ten cents per gallon over a set amount as of a certain date.