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how much to charge for application

Discussion in 'Commercial Snow Removal' started by JRSlawn, Jan 27, 2004.

  1. JRSlawn

    JRSlawn Senior Member
    Messages: 346

    how much should i charge for an 80 lbs bag purchase and applied i pay 5.99 a bag
     
  2. gt_racer50

    gt_racer50 Senior Member
    from Ohio
    Messages: 484

    $29 in my area
     
  3. gt_racer50

    gt_racer50 Senior Member
    from Ohio
    Messages: 484

    It's not so much as what you pay, it's what you can charge in your area. If you buy pallets, you can get that price down. 50#s you can get for $2.75 by the pallet, and sometimes less.
     
  4. bcf

    bcf Senior Member
    Messages: 206

    Definatley get a pallet if you can. I pay $3.79 per 50lb bag, with 49 on a pallet. I charge $15 a bag if done right after plowing, or $25 if a pre-storm application. My one commercial I charge $35. I think I am not charging enough, and will be raising it next season. OF course, if soemone calls me that's not on my route, the price is always higher.
     
  5. gt_racer50

    gt_racer50 Senior Member
    from Ohio
    Messages: 484

    The other thing you guy's might want to think about, is a service charge if all you are doing is going to the property to lay down some salt. It does cost money to moniter and drive to these places to check them out and put down some salt. FYI
     
  6. DJL

    DJL Senior Member
    Messages: 343

    For de-icing material we run a 200% markup on the products retail price. I usually can get the product for below retail, but hey that's b/c it's our business and we can get a discount due to quantities, company check, working relationships, etc.

    Next, I would add a service charge into the product. This charge would cover salary, insurance, and other miscellaneous expenses. I would also state that there's a minimum amount of product or some type of minimum cost associated with it.

    IMO, some may disagree, I would charge at least $25 for the product. I would also include some type of minimum quantity, say 240#'s that way 3 bags cost you (just material) $20 but you are getting $75. That's 55 gross for what may take you 10 minutes most to apply. Now, I'm also assuming you are already on location plowing, shoveling, whatever. If it's just doing de-icing you might want to have a separate "service charge" just to come out and apply the product. To help cover the cost of the auto and your travel time. Just my opinion, take what you want out of it. Some people may have different views.
     
  7. Landscape80

    Landscape80 Senior Member
    Messages: 167

    Charge by the pound, you really make out by doing this........somewhere between $0.12 and $0.24 is about right, maybe higher depending on how much it costs you. I charge $0.15 pound, and my excavator charges $0.24......I think that I'm gonna raise my prices if I salt next year
     
  8. PLOWMAN45

    PLOWMAN45 2000 Club Member
    Messages: 2,832

    30.00 bucks if they want sand and salt to store i charge them double
     
  9. MATITUDE

    MATITUDE Junior Member
    Messages: 4

    I charge 28.00 per 80lbs bag applied. If all I'm doing on site is putting salt down I also charge a stop charge. The stop charge ranges in price from 25.00 to over 100.00 for some of the condos.
     
  10. ih82plow

    ih82plow Senior Member
    Messages: 109


    Great information hear, remember gross is not what we put in our pockets NET proffit Is and if your overhead is 32% then add in the direct cost of labor and material you can see why 25.00 per bag is not an outragous price. But I also always say know what your cost's are and then charge them for the service.if you tell them 25.00 per bag and they are in home depo and see them for less then 5.00 they feel cheated where as if you say it a flat rat of 130.00 (or what ever you state) its less for them to dispute or feel cheated on. Flat rate pricing is alwasy the best type of pricing
    And no one can tell you what to charge with out knowing your cost's
     
  11. DJL

    DJL Senior Member
    Messages: 343

    ih82plow,

    I have a few questions regarding your reply. You state we might want to charge a flat rate to avoid the customer having issues with the cost. If a customer disputes the price and says "I've seen this in home ripoff for x dollars and you charge 5 times that!" My answer has been and always will be along these lines, "Feel free to call around to get the best price on the product. However, you can spend your time loading the product into your car-if your car can handle 2k#'s of material, you can unload the material at the jobsite at 3am when the material is needed, you can make sure we always have enough of the material, you provide a place for the material to stay dry, you can make sure the material is safe and doesn't grow legs, you can assume responsibility for knowing what product to have and when it is needed, etc., etc., etc."

    Could you define what you mean by a 'flat rate'? I'm taking it as we would charge X amount for salting, Y amount for calcium, and Z amount for sand. Doesn't the amount applied depend on the storm and the situation at hand? Therefore, if you provide a flat rate to de-ice the area, who's to say how much material is required? In turn, how would we figure the flat price without knowing the material required for that particular storm? I'd appreciate if you could fill me in with a little more detail on how you handle flat rate pricing.
     
  12. kipcom

    kipcom Senior Member
    from Indiana
    Messages: 455

    .18 cents per pound + service fee :drinkup: