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Just a few Q's and comments

Discussion in 'Commercial Snow Removal' started by almostbk1stday, Dec 6, 2005.

  1. almostbk1stday

    almostbk1stday Member
    from ontario
    Messages: 33

    First off, my ex-girlfriend tells me that the old snow contractors are located 1 hour away from her dental office. She also tells me they are paying $5500 a yr for the three commercial lots (two minutes from my home).

    Two days later, the company calls due to the referral and offers me the contract, I accept. Turns out, they only pay $350 month for a 12000 sq. ft. property and ONLY $85 per application!!! I agreed to do it but I am afraid I am going to take the loss this year.

    I can't find salt or calcium in the toronto ontario area for cheap......Im screwed. Bad luck this year but hopefully that will change. They are requesting calcium only on the walkways....anyone know of any wholesalers????

    I figure the property will net $5000 for the applications and monthly fee so we shall see where that takes us. I know next year, with the great service, they will pay $350 each building ($950 total) and $120 per application.

    Im still rambling.
     
  2. Mick

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

    You're letting the customer tell you what he'll pay? I've heard that one before and still can't figure out how that works. THEN they're also going to stipulate using only calcium - and still tell you what they'll pay? How do they know cost of material? Or equipment and time costs? Did you have anything to say about terms? I agree, you're screwed. I'd say to call them up and say you can't live up to your bargain. Make this a learning experience.

    How do you know what they'll pay next year? - "good service" notwithstanding. How and why do you think you got it this year? If it was a decent account, don't you think last year's provider would have made more effort to keep it? Next year when you try to get what it's worth, they'll just move on to somebody else.

    There are three components to any service: Fast, Cheap and Good - Pick any two (credit John Allin).
     
    Last edited: Dec 6, 2005
  3. JElmWin

    JElmWin Senior Member
    Messages: 232

    Is any of this in writing? I'd figure out a way to get out of this.:(
     
  4. Gusco

    Gusco Senior Member
    Messages: 117

    All i can say is...Bid your price. If they dont like it...then oh well. Dont take jobs if they wont profit you. (Unless you plow for fun) I have people every year call me back with my quote in hand and say.."Well i know another guy who will do it cheaper" I think..then why are you calling me? I tell them to go for it as i wont reduce my charge. I have to make a living ya know.
     
  5. dirt digger

    dirt digger Senior Member
    Messages: 619

    this happens ALOT outside plowing...we do excavation work for some developers such as Toll Brothers. they tell you what price they will pay..you take it or leave it. Sometimes its more money then you would bid, sometimes its less...if the company is going to give you a good price, take it
     
  6. scholzee

    scholzee Senior Member
    Messages: 242

    There is a saying that I am always reminded of " I will loose a little on each account but make it up with the volume of accounts" It just does not work !!
     
  7. almostbk1stday

    almostbk1stday Member
    from ontario
    Messages: 33

    .

    I totally agree with everyone here. Great points are made. This commercial spot is straight pushes or pulls with no cars and nothing in the way. I can do the lot with salt for $15 and $15 for calcium. I m still left with profit after that. They are paying per application and some days require 2 applications. I called the lady today and she will fax the quote rec'd from her previous contractor so I can verify cost. I have to pre-treat tonight for some bucks....its only salt $15.....and I get full pop for it. I am very honest and fair and no, I dont plow for fun but this customer will be my landscaping cash cow come spring.......thats not cheap around here.
     
  8. Young Pup

    Young Pup PlowSite Fanatic
    Messages: 5,487


    Did you receive the fax? You have to remember your costs are not the same as the other guy. I would not do it for the prices of the other guy. You need to get out of this somehow. Never ever let the customer tell you what they are going to pay. Now they have you by the britches of your pants.