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Help with Price per ton for Gran Deicing Mat

Discussion in 'Bidding & Estimating' started by tjcezar, Sep 14, 2006.

  1. tjcezar

    tjcezar Member
    Messages: 63

    Submitting a bid for a contract and I need help or some input concerning pricing my salting for this job. I price all my lots per bag or by lbs.(still basically per bag) but this particular request is requesting my price be per ton. Now I do not use a v-box or other bulk applicator so I am confused as to how to charge. The manager at the lot stated the previous contractor would use approx. 1 to 1.5 tons for the lot which really seems like alot since I figured for about 20 bags and thats more than enough. Now I don't have any experience with dealing with bulk salt but I know it is much cheaper. What kind of prices are people getting per ton of salt spread? And how should I approach this?
     
  2. Mick

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

    First, do you have a source or a place to store bulk salt? Second, are bags you're talking about 80# ers? That would be 1600# which may be considered "close" to his estimate of one ton. If you can't get bulk, will you be using bagged?

    For bulk prices, you're almost going to have to commit to a certain amount and order that from a supplier. Too much variance from supplier to supplier and depending a lot on the amount you are ordering. For instance, I got quoted over $70 a ton for three tons, then I heard of someone else getting salt for half that.
     
  3. tjcezar

    tjcezar Member
    Messages: 63

    i'll be using bags. Since for now I relly don't need the larger unit plus our shop Is difficult to get to to reload during a storm. it is easier to be able to get bags or have one of my guys deliver bags if we run low. Any way I think I am just going to figure around $ 175 per 1/4 ton. Thats $17.5 per bag 50#. It shouldn't take any more than 20 bags which is a 1/2 ton. Does that seem right to you? $350 to salt an approximate acre to acre and a half lot?
     
  4. Mick

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

    Well, your price is your price - you know what you need to make. Throw it out to your customer and watch his reaction. Personally, I wouldn't pay $350 an acre. I'd find someone who uses bulk salt and charges about 1/2 that or less. My opinion would be just because you don't have the equipment or facilities to do the job is not my fault. I shouldn't have to pay or it. Not meaning to come down on you hard, just giving you the customer's perspective.
     
  5. Robbie Rooster

    Robbie Rooster Member
    Messages: 33

    IMO way over priced. First off, you will have to compete with the guys who do buy in bulk. I can get a ton on bulk salt for $60. That's 3 cents per pound. I can pick up a 50lb bag for 2.97 including tax. That's roughly 6 cents per pound. The rule I've heard is try to get 3 times your salt price. $60 per ton, $180 applied. You will need to figure your costs, but from what I've seen, the price varies from .10 to .18 per pound applied. Your price of $175 for 1/4 ton? That's .35 per pound or $600 per ton applied. Just my 2 cents.
     
  6. tjcezar

    tjcezar Member
    Messages: 63

    I've done alot of sub work where I charged $15 per 50# bag up to about 6 bags and never had any problems. So that is where I am coming from.
     
  7. cet

    cet PlowSite Fanatic
    Messages: 7,202

    I would think that is where a lot of people have their minimun. If it is off my regular route it would be $100 for the smallest lot. You would be better to tell the guy a price per application before you tell him you charge $700/ton spread. With the other guy billing between 1 & 1.5 tons he is probably using 1000-1500lbs.
     
  8. jcesar

    jcesar Senior Member
    from Mi
    Messages: 492

    Not sure about where you are, but in my neck of the woods, we lay salt on an acre lot for about 170.00
    Not sure if it will help you, but if you have the means, buy bulk. Definately saves money.
     
  9. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,992

    What's a ton? did the previous guy run over a scale before and after? Wet salt weighs more then dry salt. volume wise bagged material weighs more, not as much air gap. Not knowing how the the last guy arrived at his determination of "a ton" is a problem. A scoop is about 3/4 of a yard, dry road salt weighs about 1000 lbs @ yard. A full 1.8 yard spreader holds about 3 scoops ( who carries struck loads) so using the numbers above there's only maybe 2500 lbs of salt in the hopper. Did the dude really dump a load and a half of straight salt on a acre? I doubt it, there would have been enough salt on the ground to plow. LOL

    How are you applying the material? Machines will provide better coverage with less material.
    Where are you located? prices vary with snowfall. Less snow higher prices. Weird, but that's how it works.
     
  10. tjcezar

    tjcezar Member
    Messages: 63

    the problem here is this is a govt contract that requires me to give a per ton price. I know the lot will only take about 1000lbs (20 50#) . But I have to make it worth my while. So say a bag cost me $5 maybe I could just double it and that would still be $400 a ton, but I would only be doing approx 1/2 ton so I would be charging $200 to salt the lot.