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hourly job

Discussion in 'Commercial Snow Removal' started by Team_Arctic, Dec 4, 2008.

  1. Team_Arctic

    Team_Arctic Senior Member
    Messages: 176

    So here is a question for you.

    for example you are plowing a lot at 65$ per hour and it takes you 1 hour with a straight blade plow.

    then you upgrade to a v-blade and it only takes you 45 min? do you pass the savings on to your customer. it is an hourly job that you bid at an estimated 1 hour per event.

    then to make it worse you add your self a set of wings for that v-blade that was saving you time to save you even more time. so far you have a big chunk of change in the plow to save you time and make you more money but the lot only takes you half the time now? what do you do? bill the same for the season at a 1 hour per even even though its only taking you 35-40 min? or do you pass the savings on to your customer bill out less money for the more expensive investment that you made?
     
  2. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    charge the hour anyway
     
  3. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Small lots shouldn't be charged by the hr. just for that reason. Your better off bidding per push or seasonal. This way you have an incentive to get done.
     
  4. Team_Arctic

    Team_Arctic Senior Member
    Messages: 176

    well its not really a small lot it generally takes me about 2.5 hours i was just using the hour for example. but it was originally bid at an estimated 4.5 hours which it takes with a straight blade because all the snow has to end up in one pile ( where the v-blade excells)
     
  5. BSDeality

    BSDeality Senior Member
    Messages: 736

    do you charge the same for shoveler as you do a loader? of course not. Bigger, better, faster equipment COMMANDS an increase in charges.
     
  6. I'd work back from the dollar amount. You were charging $65/hr and it took you 4.5hrs with a straight blade, earning you $292.50. Upgrading to the V takes you 45 minutes on each hour so now it only takes you 3.4hrs to finish the job. Change your hourly rate to $86/hr. Now your equipment upgrade has earned you the same amount of money, but in less time. And the customer is happy because they're still paying the same amount.
     
  7. Team_Arctic

    Team_Arctic Senior Member
    Messages: 176

    yeah and thats what im planning on doing if we still have the account next year.. i got the account with the intent to keep the straight blades with the newer plow drivers on( very open lot with nothing to hit) but ended up selling the straight blade trucks and getting 2 new trucks with v's and the contract is signed so thats where im stuck if i have to eat the difference this year its fine ill still break even im just wondering what you would do.
     
  8. THREE W

    THREE W Senior Member
    Messages: 122

    in my contract it reads one hour minimum charge on any size lot, that way there is not an arguement should it take less time, regardless of situation.
     
  9. coldcoffee

    coldcoffee Senior Member
    Messages: 776

    If it's too much of a problem for them or it's too late to change...you could always just plow it in straight blade until you can revise the contract xysport
     
  10. Brant'sLawnCare

    Brant'sLawnCare PlowSite.com Addict
    Messages: 1,754

    I would agree with both of these. Maybe you could just give them a flat (per push) price next year. That way, it won't matter what truck is on-site. You'll make the same amount of money either way. And the client won't have to worry because they will know how much they will be paying each time the snow is plowed.
     
  11. dirtmandan2

    dirtmandan2 Senior Member
    Messages: 275

    I would also lean toward the per push pricing... Problem is you go in the at $85/ hour knowing that YOU are not charging more just re-couping your cost and another contractor is at the $65 / hour . You just lost your contract. The lot owners aren't going to understand, even if they say they do. I have all straight blades and 2 w/ wings on them. I send the 2 w/ out wings on the hourly accounts, and the 2 w/ wings to the per push.