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Lowballing

Discussion in 'Commercial Snow Removal' started by Lux Lawn, Nov 19, 2004.

  1. Lux Lawn

    Lux Lawn PlowSite.com Addict
    Messages: 1,137

    I know everybody is tired of hearing about it but here is what is happening here and it's not with all company's but most of them.Most driveways you would get around $160-$200 per season depending on the length,width and other factors like where to put the snow.Now all these driveways are being priced at $120-$140 by most guys with the price of gas this year and equipment,trucks what are they thinking all they are doing is taking money from everybody including themselves.Sure I lost some regular customers to them also just like everybody else so are the low ballers or is the price just going down from supply and demand?
     
  2. Tarkus

    Tarkus PlowSite.com Addict
    Messages: 1,113

    For a long time there was not a lot of competition but there is now and competetion drives prices down like it or not.
     
  3. Vaughn Schultz

    Vaughn Schultz PlowSite.com Addict
    Messages: 1,565

    Take no chances. :gunsfiring: wack every guy with a plow in the neighborhood low-balling :nono: , burn them all :yow!:
     
  4. Lux Lawn

    Lux Lawn PlowSite.com Addict
    Messages: 1,137

    Don't get me wrong I don't mind the competition but to do a $170 driveway for $120 is crazy.
     
  5. Tarkus

    Tarkus PlowSite.com Addict
    Messages: 1,113

    I have never even gotten over $100 for a driveway in all my years, (per time anyway) so consider yourself lucky that you did!!
     
  6. Lux Lawn

    Lux Lawn PlowSite.com Addict
    Messages: 1,137


    I'm talking per season not per push.
     
  7. Tarkus

    Tarkus PlowSite.com Addict
    Messages: 1,113

    Oh sorry. On good seasons I make $200 to $300 or more on some driveways here (per driveway) I charge $30 to $75 a shot (will not even bother for less) depending on driveway. They are all rural driveways too and some are very long.
     
  8. PlowKid150

    PlowKid150 Senior Member
    Messages: 165

    I'm with Tarkus, Man thats all you guys get is 170 per season on a driveway? How many plowable events is that roughly?? I get like 50 a driveway for 6 inches of snow and anything over that I charge all the way up to a benjamin for one driveway. The best part about it, it dosnt take me 2 more minutes to do a foot of snow versus 3 inches. These drives of mine are like 20x100

    Kevin
     
  9. PlowKid150

    PlowKid150 Senior Member
    Messages: 165

    I'm with Tarkus, Man thats all you guys get is 170 per season on a driveway? How many plowable events is that roughly?? I get like $50 a driveway for 6 inches of snow and anything over that I charge all the way up to a benjamin payup for one driveway. The best part about it, is it dosnt take me 2 more minutes to do a foot of snow versus 3 inches. These drives of mine are like 20x100

    Kevin
     
  10. Tarkus

    Tarkus PlowSite.com Addict
    Messages: 1,113

    I only charge more if it takes longer because of snow (which it rarely does) Also after about 5 or 6 "trips" for each driveway I start discounting prices too and it brings them back every year too.
     
  11. PlowKid150

    PlowKid150 Senior Member
    Messages: 165

    Sometimes Steady, relaible Customers are better than overcharging.... You never worry about having business....You are absolutely Right my man.

    Kev
     
  12. Tarkus

    Tarkus PlowSite.com Addict
    Messages: 1,113

    Yes you have to have the ones you can count on year after year with everybody trying to grab them. I have even been known to throw in a few free jobs on a real bad winter to regulars. I have had some of my clinets for well over 10 years now.
     
  13. Lux Lawn

    Lux Lawn PlowSite.com Addict
    Messages: 1,137

    Maybe 20-25 plows for the year at 2 inches
    driveways are like 8-18 feet wide and vary greatly in length.
     
  14. Tarkus

    Tarkus PlowSite.com Addict
    Messages: 1,113

    I was a kid for several years in the snow belt in Cleveland long ago and I do not recall 20 to 25 snowfalls a year ever.
     
  15. Lux Lawn

    Lux Lawn PlowSite.com Addict
    Messages: 1,137

    Last year we plowed 23 times we have to plow every 2 inches of fresh snow.

    Where did you live?
     
  16. Tarkus

    Tarkus PlowSite.com Addict
    Messages: 1,113


    Good deal for you, No where near Cleveland anymore. I still have a few relatives there and I was last there the summer of 2000 as I recall.
     
  17. DeereGuy

    DeereGuy Senior Member
    Messages: 346

    What's going on with the pricing here

    Since the topic is already here, this might be a good place to vent. I live in seacoast NH. An expensive place to live and a bedroom community for Boston, MA.

    I receive a call this morn. from a guy on a street with expensive homes. I lost a job on this same street last week because I didn't sign them immed.. Anyway I go by on my way to work and catch the guy before he leaves. 175 ft winding drive with three stall garage. Aprox $800k home well maintained landscaping. His wife doesn't work and he works from home. I think I am giving him a great deal just to break into his area. 2"- 6" @ $45. each addit. 6" @ $45.. Now it should be like $55-65 for first 6" but anyway, He glares at me in shock and says that he doesn't have any time and turns to walk away but can't help but mutter that last year he paid $27..

    Now I'm in shock and stop him by asking why he isn't contracting with him again. He states that the guy never plows til 2 or 3 pm the next day. I state that I won't compete on price with someone he's unhappy with and make a comment about plowing for beer money.

    The guy called me from seeing a nice sign I had made up with vinyl lettering. I spent $70. on four signs (1 already stolen) out of a total of $400. this fall on advertising. This is the tip of the iceberg for my expenses. Are these people daffed?

    Wouldn't you think that a person with that kind of setup would want at least someone with plowing insurance? The kicker, I have lost 3 accts in 2 weeks due to this same attitude. With folks of means. This year has been a killer in terms of competition. Used plows are everywhere. I hope we get a 24"er right off the bat to weed out these no good, rack'em shmack'em Lowballers. :gunsfiring: :eek:
     
  18. maurader

    maurader Member
    Messages: 37

    I guess it's just comparing apples to oranges when you look at one location to another. It seems to me that the less amount of snow received in an area equates to higher prices. To charge someone here 25-60 per push would be ridiculous. $175 a season is the average price around here and that is usually unlimited trips. We plow on a 3" trigger. A per push price is from $10 to $15. We average 15-20 events per season. Charging more and plowing less must be an awesome thing to do. It's just not possible here.

    BTW, I'm curious as to how many plowable events everyone averages around the country.
     
  19. The Boss

    The Boss 2000 Club Member
    Messages: 2,099

    Prices vary everywhere you go. :nod:
     
  20. powerjoke

    powerjoke PlowSite.com Addict
    Messages: 1,341

    hi'
    i was just wondering where you are getting your prices 'cause they seem a little silly to me, you say well look at what plowing and salt does to equipment.
    Well i am here to tell you, you don't know what rock does to machines, there are a few EXCAVATORS on this site that knows what i am talking about, ROCK PAY IS DOUBLE on a 100k+ machine and still the prices aren't what you are charging for a PICK-UP-TRUCK snow is softer than rock and salt is corrosive are two things that can't be argued, i had a bunch of wise-ases on my wal-mart thread and i don't mean to be running down this thread. Butt if you are so afraid of a low-baller :gunsfiring: :rolleyes: beating you out maybe your OVERCHARGING. and i don't know what a loaf of bread cost's in juno AL or Canada or wherever but it still don't cost $50 i can assure you of that, next time you start talking bad about low-ballers just think THEY ARE STILL MAKING MONEY, and no one can tell you how much you have to charge,
    SUPPLY&DEMAND will tell you that so you can talk 'bout me low-balling but it still does not change the fact that WE DON'T HAVE ANY SNOW(supply) or need for snow plows (demand), without the white shi* falling from the sky. Butt till you all learn some business ethics and professionalism do not tell me i am taking food out of your mouth

    THANKS RICK