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Monthly bidding.....

Discussion in 'Commercial Snow Removal' started by Joel B., Oct 29, 2005.

  1. Joel B.

    Joel B. Senior Member
    from MN
    Messages: 233

    Do you use the same price for each month in a season or is each month priced differently based on the amount of snow the month gets? Do you price based on the snowiest month? Least snowiest? or somewhere in between?

    Since each month is different, how can you put the same price on each?

    Thanks for any advice,

    Joel B.
     
  2. LwnmwrMan22

    LwnmwrMan22 PlowSite Fanatic
    Messages: 27,980

    You take your total average snowfall / year, and divide that by however many months your plowing contract is.

    For me, it's an average of 18 snow events / year, with a 6 month contract.

    I take my total per push, then multiply it by 18, that's the total per year.

    I then divide by 6 for 6 equal payments.

    It doesn't matter if it snows 0 times in November, December, January, 17 times in February, 1 time in March and 0 times again in April, each month is the same.
     
  3. Mick

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

    I just had this come up for the first time today. A customer I've had for several years came to my house telling me of several changes I needed to be aware of. Then he said he'd really like to have one amount to pay every month. I knew what his plowing cost him every year, so I took an average and divided by five months for November to March. Now he's got the option of making monthly payments, but hopes to just pay the for the season in the next couple months. As far as I'm concerned, I don't care which. The main benefit for me is I don't have to worry about whether I should plow or not, just go and do it.

    Just make sure he understands that he'll owe it every month for the agreed on time period whether it snows that month or not. For me in this particular case I'm not concerned about it, but you might want to include a "storm clause" and a limit to the number of plows per year.
     
    Last edited: Oct 29, 2005