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Monthly Commercial pricing

Discussion in 'Commercial Snow Removal' started by chico1234, Oct 4, 2006.

  1. chico1234

    chico1234 Junior Member
    from canada
    Messages: 7

    Hello everyone,
    I ahve worked the plowing business for the past 5 years, residential lots and I worked for a snow broker for 2 years. This year I want to go all commercial on my own, and I want to charge a flat monthly rate for salt and plowing. I am putting my numbers together based on 5 plows per month and 6 salting per month. I am charging $100.00/hour for truck or skid steer with a pusher and $150.00/ton for rock salt. Without getting into detail...do you think i am basing this on to many/little saltings or plows per month? I am so confused now that I have seen some other contract prices....guys have tweaked all numbers so other get thrown off...including the customer. I have seen guys charging $70/ton for salt when I buy salt at $73/ton from one of the areas biggest depots. They are saying they are putting down 3 ton tons when all they need is 1/2 ton etc... People are barely charging for plowing. I have been at about $1100.00 month for 1/2 acre lots(salt & plow) but no goes...the other contractors "look" cheaper on paper.

    Help
     
  2. cet

    cet PlowSite Fanatic
    Messages: 7,202

    What area are you pricing?
     
  3. chico1234

    chico1234 Junior Member
    from canada
    Messages: 7

    the york region area...more specifically hwy 7 and jane as well as brampton...airport rd/ hwy 407.

    How are you finding prices?
     
  4. cet

    cet PlowSite Fanatic
    Messages: 7,202

    I am going to guess Hwy 7 and Jane has less then 25 plows. 30 salts might be right. If you have contracts that have to be done while it is snowing you will go more often but if you are only plowing at night or after everything is closed then 18 would be closer. In your example of 1/2 acre lot, that is going to take approx 30 minutes and 500 lbs. of salt. Even if you said $75/plow and $75 to salt that works out to $3600 or $720/month. If you are bidding against guys that charge extra for salt then your plowing has to be real low. They are all going to cheat on the salt and salt often.

    Prices are low every where. You have to have volume.
     
  5. chico1234

    chico1234 Junior Member
    from canada
    Messages: 7

    Thanks cet for the response.
    The estimates state it is a "clean lot" contract. Stating that there is no trigger...however lot will be kept clear of snow and ice at all times. Passages, and entrances will be monitored during continuous storms and be kept clear...and a clean-up will follow at night once the storm has passed. lots clear by 7:00am. These industrial/commercial properties are pretty nice so the above is a given. when we did work under another pretty big snow company this is how he ran the show. I liked it. And the customers did to. There are so many landscape companies that are in it for one year thanb fold and they screw up all the pricing around here...but i guess it comes with the territory. Any advice would be appreciated! Thanks a million!!
     
  6. 2moresleeps

    2moresleeps Senior Member
    from Ontario
    Messages: 131

    .

    Like cet mentioned, the plow price has to come down some. I think what you said is correct regarding the people who put down 500lbs of salt and charge for 3 tn. The truth of the matter is you cannot really know what you are laying in terms of salt unless you have a scale or completely empty your load. It is better to error on the higher side.

    If I use my salter and spread salt, I may lay 500lbs but Ill charge for 750lbs cuz I could be off. Now, someone would have to be a complete moron to lay 500lbs and charge for 3-4 tn. It wouldnt fly for very long.

    Just because you charge $75 or $70 or whatever doesnt mean you charge that amount. We add a little more to the total (of what we actually spread) to cover the drive time, the delivery and set up. If my customer wants to load up 2000lbs of salt and spread it themselves, have at it, otherwise, its at MY discretion.

    Last year, I loaded up 1700lbs of salt, I emptied half of my load and charged for 1000lbs everytime. You will learn what you can and cant do. $1100 per month plus salt will not fly in very many of the areas you talked about....period. Customers around that area are cheap cheap cheap.
     
  7. cet

    cet PlowSite Fanatic
    Messages: 7,202

    Last year I was called to quote 2 commercial buildings. One might have been a 1/2 acre and the other one larger. There was a bit of sidewalk work involved. With salt I bid $8,400. One of my brokers had a Dry Cleaners in the one plaza. The owner phoned back and said last year they paid $6,400. I lowered my price to $8,000 but no go. Just before winter the owner phoned to offer me $7,000 but I said no. I have a lot of broker trucks and because this is extra I have to cover the work with brokers. I may need more then someone working their own truck but $8,000 was a fair price. Of course this year they are looking again. The 2 plazas are worth approx $5 million and have a single owner but a $1,000 in his pocket is better then yours. I most likely could have done it for $7,000. The salt truck drivers go past the plaza, they are not fully loaded on their second trip, I would have put down approx $30 worth of salt the way I buy it and the driver is on a minimum # of hours that they seldom get to. BUT you have to draw the line somewhere or the prices are going to continue going down.

    2moresleeps, I think the $1100/month included salt.tymusic