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Monthly Pricings

Discussion in 'Introduce Yourself to the Community' started by SnowBusters_, Oct 5, 2011.

  1. SnowBusters_

    SnowBusters_ Junior Member
    Messages: 11

    Hey fellas I need a hand determining a price for a light commercial lot cause a person wants me to come quote them a monthly price but Im not too familiar with pricing commercials so I would like to know how you guys price it out, and what are alternative ways?

  2. Plow Nuts

    Plow Nuts Senior Member
    Messages: 214

    price per push, per inch, per season, hourly are the most common ways. To figure out monthly you would need to figure out your average snowfall for your area, how many snow events you average per year, then divide the amount of average snow by amount of average snow events. Let's say you end up with an average 6" snow event and average 3 per month. You then need to determine/estimate what it would take you to clear the property with a 6 inch snow fall plus salting if required. Lets say it takes you 3 hours at 100$ per hour to clear said property with a 6 inch snowfall. at 300$ plus 100$ in salt gives you 400$ and multilply by 3 for 1200$ and figure in any discounts you wish to add. Simple right :)
  3. 100InchHammer

    100InchHammer Member
    Messages: 34

    OMG that was overcomplicating it. Take YOUR price per push based on YOUR trigger (IE: $100 every 3") multiply that times the avg number of pushes /yr. Some geographic areas may only push 10x's/yr others may push 20x's per yr. Let's say you avg 15 pushes @ $100 = $1500/yr. Divide that by the months you typically plow Oct-Feb or Nov-March (5mo.) $1500/5=$300/mo. Let the customer decide how he wants to break it down...minimum 3 months (Dec-Feb). OR $1500/3=$500/mo. It all comes out in the wash.

    (Price per push) x (Avg no. of pushes/yr) / (No of months) = Monthly Price
    $100 x 15 = $1500 / 5 = $300/mo.

    You will have to sell it. Anytime you let the customer make decisions, it makes them feel they are controlling the outcome and in turn they are more likely to favor your service. You dictate to them YOUR terms and they may choose to go elsewhere. They may like 5 months at $300 better than 3 months at $500. Just try and have your last invoice due at the end of March.