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How to set prices?

Discussion in 'Introduce Yourself to the Community' started by hiniker1988, Dec 15, 2013.

  1. hiniker1988

    hiniker1988 Junior Member
    Messages: 27

    This is my first year plowing on my own. I have plowed for some companies before but this is the first year on my own. I only do a couple of accounts.

    I also have a fulltime job as well.

    I have a customer that I plow for the lot is .67 acres.




    I am looking at

    .5"-2" - $50
    2.1"-6" - $65
    6"-9" - $80
    9" and up - hourly

    How does this sound??

    Thanks
     
  2. maxwellp

    maxwellp PlowSite.com Addict
    Messages: 1,112

    Is it an easy lot? no cars, nothing to hit? If so ok, but if there is stuff in the way to smash up raise that price and slow down.
     
  3. hiniker1988

    hiniker1988 Junior Member
    Messages: 27

    Just a couple of cars and trailers but I just push next to them. It is a pretty easy lot. First push of the year took about 2 hours had about 5.5".
     
  4. maxwellp

    maxwellp PlowSite.com Addict
    Messages: 1,112

    Depends on the going rate there in SD. I can plow an acre in about an hour. +- depending on the snow and how
    wet. I have one lot that is .6 acre that I get $78 for it with 2" on it I can do it in 23 min. With 5" it is 50 min. $97.
    That is with a 9'4" V Plow
     
  5. SnowGuy73

    SnowGuy73 PlowSite Fanatic
    Messages: 24,868

    2 hours, and you grossed $65.......Jesus!
     
  6. hiniker1988

    hiniker1988 Junior Member
    Messages: 27

    Where should I be? Again I am new at this.
     
  7. hiniker1988

    hiniker1988 Junior Member
    Messages: 27

    I have a 8' straight Hiniker. It is actually 3 different lots. One in front of the building one on the side of the building and then the warehouse drive and trailer parking lot.

    http://www.findlotsize.com/?e=43.699182,-98.021391:0:414 E Juniper ave mitchell sd 57301:measure:0

    I can do it in about 1hr and a half if nothing is around.
     
  8. maxwellp

    maxwellp PlowSite.com Addict
    Messages: 1,112

    For 5.5" on .67 acre I would get $97 and would have it done in under an hour. But that is here and not in SD. What is the going hourly rate in SD?
     
  9. SnowGuy73

    SnowGuy73 PlowSite Fanatic
    Messages: 24,868

    At the least you should be at a dollar a minute, you're going to price yourself right out of the business.

    Do you know what your running costs are, bot direct and indirect?

    If not you should.
     
  10. maxwellp

    maxwellp PlowSite.com Addict
    Messages: 1,112

    The woodworking place?
    I would get $100 for that @ 1-3
     
  11. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    You need to figure your costs. Cost include but are not limited to, fuel, insurance, time, office work, break downs, and of course profit. At 25 dollars an hour, I know your not covering your costs. I don't care where your at, or how cheap you think you can plow for, you need to be at 50 an hour minimum, I personally wouldn't plow for less than 65 an hour.
     
  12. hiniker1988

    hiniker1988 Junior Member
    Messages: 27

    Thanks for the advice. Like I said I am just doing this on the side. Again really my only account as of right now but thinking I might try to get more so it would be nice to know where to price it at.