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Need help with pricing

Discussion in 'Business Fundamentals' started by NEtranspalnt, Oct 16, 2004.

  1. NEtranspalnt

    NEtranspalnt Junior Member
    Messages: 3

    I am new to the snow business. I will not be plowing the year, but I will be bidding on several large accounts for side walk clearing and applying sand/ice melt. I am looking for advice/software on standard levels of snow fall before initiating the service(s). Do I make 1" my minimum for clearing the walks? What about when all they need is sand/ice melt? How do you set the pricing structure?

    I have the free trial of Blizzard Buster installed, but it doesn't help with determining bid pricing.

    Any advice to this newbie would be appreciated.
     
  2. Mick

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

    I'd say for what services to provide, when and other service-related matters; talk to your customers. What are their needs and expectations? You are going to get a feel for what is "average" so after awhile you'll be able to discuss authoritatively when giving a quote. As far as pricing, you might try setting 2x your cost of materials applied or $50/hr for services like snowblowing or a combination of both. If you don't already, you'll soon get an idea of how much area you can clear in any given amount of time with a set amount of snowfall. Then start giving "per trip" pricing.

    If you're working in conjunction with another guy who is plowing; you'll generally be in a sub situation for clearing walks. He'll have rates set that he will pay you.