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How Competion in your area

Discussion in 'Business Fundamentals' started by StableP, Oct 24, 2004.

  1. StableP

    StableP Junior Member
    Messages: 12

    I just started my plow business 2 months ago and now i have just bought a brand new truck plow 1 ton 7 foot plow. last week i just sign up 7 seasonal accounts, worth around $15,000 and it has'nt even snowed. These people all told me they were looking for years for sombody to come out. How competionin your area.
     
  2. qualitylawncare

    qualitylawncare Senior Member
    Messages: 501

    About 250 legit-full time companies, and probably 10,000 part-timers, scrubs, lowballers, and homeowners...

    Average driveway around here 25x50 goes for $6.00 per push.. Have to really look for the customers who are willing to pay for quality service.. :eek:
     
  3. ROSELAWN

    ROSELAWN Member
    Messages: 78

    Hey Qualitylawncare, do driveways really go for $6.00 in your area?! That is about $30.00 cheaper than my nech of the woods. Also to stableP if you have a 1-ton with a 7' plow you might want to put Pro-wings on it or something to widen it or you will be driving over your windrows.
     
  4. PSDF350

    PSDF350 Senior Member
    Messages: 577

    i would have to agree with roselawn 7' plow on a 1 ton is small. why did you buy a 1 ton if you were going to put such a small plow on?
     
  5. Eyesell

    Eyesell 2000 Club Member
    Messages: 2,101

    I'll tell ya this much, I won't plow a driverway for $ 6.00, we can get between $ 30.00-$50.00.
     
  6. Boast Enterpris

    Boast Enterpris Senior Member
    Messages: 745

    HMMMM, fuel averaging $2.10 a gallon + Driveway averaging $6.00 = Plow & truck for sale soon!!
     
  7. qualitylawncare

    qualitylawncare Senior Member
    Messages: 501

    Haha that's what I'm hoping for.. Maybe these sky high gas prices will cut out alot of the lowballers. I'll keep ya posted. :cool:
     
  8. AintNoFun

    AintNoFun Senior Member
    Messages: 175

    i know a job i used to plow for $2100 and $1200 to salt went for $450 to plow and $400 to salt and $55 an hour for the walks? And they guy that did it before me was getting about $1900 a push, so i don't know whats up.....
     
  9. cet

    cet PlowSite Fanatic
    Messages: 7,202

    We have had problems like this before. The best thing to do is to stick together. When the low baller fails, and he will, the location in question is going to call in a panic. DON'T GO!!! Let them sweat it for a while. We had that happen here where a new guy, just 21 living at home was undercutting everyone. The first storm( not snowfall) he had 4 slip and falls. The property management company was in a panic and they started phoning everyone to help them. Don't go and let them sweat for a while. But you guys have to stick together at this point. You are not their back up truck.
     
  10. The Boss

    The Boss 2000 Club Member
    Messages: 2,099

    I would like to express what I would like to do to lowballers but the plowsite guidelines won't let me! :D However this does give me a good idea for a new signature. :nod:
     
  11. Dnipro Max

    Dnipro Max Member
    Messages: 60

    hey, The Boss, I like it, your signature, Steve is right, this area is real cheap, they do season unlimited trips for $160, and then when customer call me for price, they ask if i'll beat the price, They wish, I talk with snowplowing guy and they said $10 a push is good if you get around here, and i'm just starting out with fearly new truck, and new plow, and with diesel at $2.37 can't make nothing here,
     
  12. The Boss

    The Boss 2000 Club Member
    Messages: 2,099

    If drives are getting done for $6.00 per push, I wonder if that's some neighbor kid doing it with a shovel? I don't do residential except for family but if I was going to bid on them again(I used to do residential) I wouldn't even touch a driveway for no less than $25.00 for the smallest one.
    Boast couldn't have put it better. :drinkup:
     
  13. qualitylawncare

    qualitylawncare Senior Member
    Messages: 501

    No shovel for $6.00.. The kids around here will do them for $2-5.. The guys around here plowing for $6.00, will go to the bar, drink and drink and drink until there is 8" on the ground and then head out to plow. So essentially, they are plowing for beer money.

    I have alot of respect for the guys like me on this site who are local and doing this full-time trying to make a living off it. Dnipro Max, GVLAWNCARE, Green Mountain, and I know there are some others. :nod:

    I'm probably going to add two more plow trucks this season because my phone has been ringing off the hook. This is my first real season plowing, but I have been mowing alot of my customers since I was 12 (6 years). They know I produce quality results on my lawn maintenance end, and I promise I will do the same in snow removal; even though my prices are 3-6x the competition. :cool:
     
  14. The Boss

    The Boss 2000 Club Member
    Messages: 2,099

    Snow removal is my main source of income in the winter. I'm going to work part time at the strip club again for extra money. My point is that us guys who plow for a living and try to run a respectable business are being shoved to the side by lowballers. Sucks. :angry:
     
  15. Boast Enterpris

    Boast Enterpris Senior Member
    Messages: 745

    HHMMMM, Drink & Drink + plow 8" snow+ residential driveway = BIG LAWSUIT (eventually) The Boss, may I use the lowballer part of your signature?? :nod:
     
  16. The Boss

    The Boss 2000 Club Member
    Messages: 2,099

    You sure can! Pretty good idead isn't it? :yow!:
     
  17. JMR

    JMR Senior Member
    Messages: 567

    I don't real worry about what the competition is doing. I bid the accounts I want, if I get them thats fine, if I don't oh well. I retained 100% of my accounts from last year and have already added 3 new accounts through referrals from from other accounts. I am doing the routing now, but I should be running at 100% capacity for my current crew and subs. I do have a bid in on a pretty good size account, that I should get. I will have to sub the entire job though. Quality and service will get you the type of accounts you want. Low ballers won't last long if an account is looking for a quality based provider. Bottom line, if an account is not will to pay for quality service, you don't want them as an account.
     
  18. qualitylawncare

    qualitylawncare Senior Member
    Messages: 501

    The problem is everyone wants quality and service for nothing!!!!! :nono:

    I'm stealing your sig BOSS! :drinkup:
     
  19. JMR

    JMR Senior Member
    Messages: 567

    A low baller won't be able to provide the quality service that customers demand. There will always be low ballers out there, but they won't retain accounts that are looking for a higher quality level of service. This is all part of a free market economy. Once people are tired of crappy service they will be willing to pay a fair price for good quality service. Pricing is also a factor of supply and demand. If there are more snow removal contractors available in your area than there are jobs than prices will be driven down. If prices stay low long enough then snow removal contractors will be forced out of the business until the number on contractors moves closer to the number of customers, as this happens prices will increase. The market will correct itself. If you can't sell your services and operate at a profitable level then it is probably time to rethink your ideas about providing snow removal services. unless your just in this for the fun of it. We are all guilty of trying to get the most for our $$$$. Are you willing to pay $500.00 more for a plow setup installed on your truck from one place over another. Why is that dealer more expensive than the other? In many cases it may be the level of service, the quality of the install, and warranty service.
     
  20. qualitylawncare

    qualitylawncare Senior Member
    Messages: 501

    Trust me I know exactly what your saying. I want everything to be the best.

    I won't touch a driveway for less than $18.00, but in my mind it's still too cheap. But anything over that and people will turn ya down (everyone)..

    The problem is lowballers are plowing for under $10.00 and everyone else over $10.00 is doing REALLY good work. This is the problem where quality and price clash. It's scary when you can find someone that will do an awesome job on a driveway, have insurance, etc and only charge $10.00.. It still amazes me :confused: