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Over 11" Set Price

Discussion in 'Commercial Snow Removal' started by Santo, Sep 20, 2003.

  1. Santo

    Santo Banned
    Messages: 255

    A large commercial shopping center has invited us to bid this season. They want a set price for over 11". We have never bidded like that . I would either t&m it or go by increments. Say we get a few feet. I really believe they got hurt last year with the 20'' . After big winters , people tend to begin " shopping " the next fall ,which is normal but they get what they pay for. Any IDEAS besides playing the lottery pricing?
     
  2. Mick

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

    Pass on it. Anyone who would expect a set price for anything over a certain depth is not being realistic.
     
  3. JohnnyU

    JohnnyU 2000 Club Member
    Messages: 2,040

    I think I'd give them a set price of $XXX.XX [per hour], Explain to them that this is how you bid a "blizzard" condition. Then be sure to define what a 'blizzard' would be. "so many inches in so many hours" or something.


    I agree that you should probably pass up on that bid if they are not willing to play by or close to your 'rules'. Just my $.02
     
  4. BWhite

    BWhite Senior Member
    Messages: 496

    I agree it looks like they are looking to find a contractor who will take the hit during a LARGE snow event . That is mighty nice of them !!
     
  5. Mike 97 SS

    Mike 97 SS Banned
    from U.S.A.
    Messages: 1,106

    Thats kind of funny that they want a set price over 11". So if it snows 11.1" or 30", they wanna pay the same amount?? Tell them good luck in finding someone who would take them up on that. I think you should pass on it too, why have to beat up your equipment and not make anymore money than if it was a smaller storm? Mike
     
  6. PINEISLAND1

    PINEISLAND1 PlowSite.com Veteran
    Messages: 664

    If all your other increments are competitive, go ahead and pick a large number, and bid the 11" plus. Why would you ever let 11 build up on a commercial site anyway ? An 11 inch storm would see us visiting that site about 5 times.... and if its really bad, a loader and protech or two are committed to it, plowing it completely, then starting right over again... as many times as it takes to keep it open. Every push would be billed in the 1-3 inch range usually, unless its coming really fast and you get 4-6 built up before you start over. If thats the case, throw more equipment at it. You just need to be able to have the backup equipment available for those freak storms.
     
  7. Santo

    Santo Banned
    Messages: 255

    Im thinking there is a suit in their main office trying to make a name for himself. Or he is dumb as a lugnut. We will bring that clause to their attention. 12'' - 12' same price???
     
  8. BRL

    BRL PlowSite.com - Veteran
    Messages: 1,277

    PineIsland,
    Great points, but in this case, I'm guessing that the contract is per storm pricing not per push. So the prices are based on the total accumulation of the storm.

    Walk away. Or I would throw them a HUGE number for that one, that would cover, say the 24" storm that your area might see every 3 or 4 years. Once in a while a storm is bigger than that, more often the big ones would probably be in the 12" - 18". Then the client can decide whther they want to gamble on that. Also make sure to provide them more realistic incremental pricing with a "blizzard" clause so that if they do want to go with you, they can have a realistic contract to use vs their request.
     
  9. Santo

    Santo Banned
    Messages: 255

    There is a sucker born every minute , but I dont think they could afford the insurance policy to begin with. You really got to roll the dice here for sure. We will try a blizzard clause . If they still demand a set price we will give them one. A 3' snowfall one. That still is gambling.
     
  10. Joey D

    Joey D Senior Member
    Messages: 280

    I agree with Pineisland. If they want a price to include over 11" then figure for 24" and give them that number. You may be the only one giving them a price as they don't want a blizzard clause and most contractors will think there crazy.
     
  11. wxmn6

    wxmn6 PlowSite.com Addict
    Messages: 1,037

    If they want a fixed price for storm total of over 11", then I would either walk away or bid really high. If you want to bid high, then I would figure the cost for a minimum of 30". Since you are in Philly area, I do not believe that you get snowfall in that amount often. But it still is a gamble.
     
  12. Santo

    Santo Banned
    Messages: 255

    Who said 11 inches are going to build up??? These people get charged by what NOAA dictates dropped. That joint will be PRE_TREATED with powerstrokes idling at all 4 corners. Remember....Santo has mastered the trade
     
    Last edited: Sep 21, 2003