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Need help with pricing

Discussion in 'Introduce Yourself to the Community' started by 3countysnow, Oct 16, 2006.

  1. 3countysnow

    3countysnow Junior Member
    from PA
    Messages: 2

    I am new to the snow plowing business. I have a 2002 Chevy 2500 HD with a gas motor. I am purchasing a 8'2" Boss power v plow and a Boss salt spreader. I have no idea what I should be charging per hour. I will be plowing in Central PA. I am going to focus on residential accounts to start out, but I may take on a commercial account or two. From reading the Forums I noticed most guys are charging a flat rate for residential accounts. Any suggestions on how to determine the price for a residential account?

    wesport Always moving forward wesport
     
  2. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,571

    For get charging by the HR..
    It will take a novice longer to plow an area that a seasoned Pro.
    Why would the pro make less than the novice???? Working by the HR...
    what I'm saying is in the beginning it will take you longer to plow a drive but as you get more efficient at plowing it will not take as long and you will make LESS.

    price/bid by the job. You can use the HR or other formulas to figure out your rates will be.
    You can have a minimum fee.

    What to charge?? what will the market in your area bear?. what is the going rate in your area?.
    How much do you need to make to cover your bills and make a profit?..
    What are you going to charge?.


    Have you ever plowed before?
    Do you have the proper INS?
     
    Last edited: Oct 16, 2006
  3. 3countysnow

    3countysnow Junior Member
    from PA
    Messages: 2

    Thanks for the suggestions. I am planning on charging a flat rate for a residential job, but I was not sure how to price a commercial account. I have experience in plowing so that should not be an issue. It's just that I am new to running my own business. I have a friend that is helping me get set up, but I did'nt think that it was appropriate to ask him how much he is charging. We are going to be working some what in the same area and I don't want to interfere with his business. However, he has already offered me some sub-contractor work. I have heard $100 an hour is the going rate in my area. I was thinking of starting out at $75 an hour to see how that works. Does that sound fair?

    As far as insurance goes, I am getting commercial insurance with $2 million in liabilty.

    Any suggestions are appreciated.
     
  4. BMPM

    BMPM Member
    Messages: 38

    where are u out of in central pa? I'm in the Hershey area and I just now got some of my contracts signed for commercial accounts. One thing I can tell you is it's rough being the new guy on the block around here. All my contracts are by the inch. If i can help you out with any advice let me know. By the way I have a 8.2' Boss V plow/ Boss 1100 speader. Any questions on that i might be able to help also.
     
  5. 3countysnow

    ins.2 mill. that's good $60 $75 per hour reasonable,i have plowed snow since 1977 22years old then TODAY i still squirm when trying to price stuff.i have been offered condo's but will wait till next year, this year i will try to get 4 plows up and running and next year if all goes well i will have 6 plows,THEN i will be ready.but as i say it's always,to me a throw of the dice.WHAT DO YOU OLD TIMERS THINK? the main thing is to work safe and to make money,and HAVE FUN.regards gary snow georgian bay, ontario,canada
     
    Last edited: Oct 22, 2006
  6. EnviroTeam

    EnviroTeam Member
    Messages: 71

    Hey there

    Hey there Gary where around the bay are you...I am in Barrie
     
  7. cet

    cet PlowSite Fanatic
    Messages: 7,202

    Gary, I pay my brokers $75/hour. If you have salting and you are doing that part with your own trucks then bill it a $90/hour for plowing. The problem is what takes you 3 hours might take the broker 4 hours. So you have to estimate the time for an average plower.