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Per Event Pricing

Discussion in 'Bidding & Estimating' started by Duramax66, Dec 13, 2010.

  1. Duramax66

    Duramax66 Junior Member
    Messages: 18

    Does anybody charge per event (24hr)
    I have a customer that wants a per event price that covers 24 hours from the start of snowfall. They have zero tolerance for anything. It is 2.3 acres of lot .7 miles of 2 lane road and 28000 ftsq of sidewalk.
    I submitted per push and per inch now they want per event.
    Does anyone have an idea of how to go about this?
  2. swtiih

    swtiih PlowSite.com Addict
    Messages: 1,179

    I don't price this way.The last 2 events we had were both lingering snowfalls and during the day. My per time customers where done once.When a customer has chosen to go with per push then they have chosen to wait until the end of the snow or pay twice or as many times as they request service. My suggestion is to explain this delicately of course and then offer a seasonal price.These types of snows are not typical but do happen.
    Nobody is in control of when,how much or how long the snow will take.
    But to specifically answer your question you are in business to cover your cost and make money. What did you have to do on this lot yesterday and today? Did you have to plow all of it and then 1/2 the 2nd time. How much salt did you use total compared to just one event. That should give you a good idea of what you need to charge. However what happens the next time. If you set this type of service up they will want you to be there unlimited times. Sounds like they want a seasonal but don't want to commit to it.
    Maybe tell them it will be x% off if you come back within 24hrs so they feel they got something.
  3. swtiih

    swtiih PlowSite.com Addict
    Messages: 1,179

    I am curious to see as well what others think.
  4. Dewey

    Dewey Senior Member
    Messages: 438

    All of my residentials are per event in a 24 hr period.....If its a storm less than 10" I go once...If a larger storm 10-"12" plus I go once midstorm and open them up then go back when storm is done to clean up... I charger 1 1/2 times for these.. so if its a $30 drive I charge $45 for big storms.... If it's one one my Commercial accounts that wants to be plowed every 2" then I charge everytime I show up...
  5. Duramax66

    Duramax66 Junior Member
    Messages: 18

    Most of my lots we service are a per push price with a certain trigger. What they want is one price that covers a 24 hour period no matter how little or how much it snows. I have prices it per push and given them inch ranges but it does sound like they want seasonal without commiting or paying for it.
  6. MileHigh

    MileHigh PlowSite.com Addict
    Messages: 1,827

    Per Event should be set up with a trigger, depth rates, and most importantly..time of opening. If they are a 24 hour joint per event sucks.

    I have a per event commercial account and it set up like this:

    -2" trigger
    -Under 2" deice and sidewalks only, 2-4" rate, 4.1-6" rate, 6.1-8" rate, 8.1-10" rate, 10.1-12" rate, and each inch over 12".
    -Store opening of 9am.

    -4.9" fall during business hours...I must service the place twice the two inch trigger is in play during open hours
    -4.9" fall during closed hours...I service the place only once and get paid for the 4.1-6" rate.
    -9" fall...3 during open hours, and 6 during closed hours. I push the place once during open hours, let it accumulate a little, go push 6" before they open, and get paid like I pushed the place 4 times.

    IMO Per event only works in the contractors favor when the snow falls during closed business hours the way it's set up for me...If the place is zero tolerance 24 hour type thing...I would raise my rates.
  7. kah68

    kah68 Senior Member
    Messages: 236

    I assume you are talking commercial, I only do rural res. but some of these driveways are as big as small commercial. 3" trigger per push only, if we get 6 or more inches we go out twice, 9 or more 3 times...it's just that simple.
  8. bristolturf

    bristolturf Senior Member
    Messages: 435

    Give them a seasonal hybrid. Include your services up to a set amount of snow, for us we do 48". If its more than that tell them it will be per event then, and if its less than 24" for the season we refund them 25% of the total cost towards maintenance services. I guess you would just have to explain that during an all day snow fall you will be back to open drive lanes, roads, walks, etc every inch or something and come back at the end of the snow to clear the entire lot
  9. LB1234

    LB1234 Member
    Messages: 91

    sounds to me to save your shirt just charge hourly and see what they say. That way if they want you there for every half inch of snow you have no problem doing it cause you are generating money the whole time and not worrying about getting in and out in a specific time to make profit.
  10. swtiih

    swtiih PlowSite.com Addict
    Messages: 1,179

    And charge a 3hr minimum
  11. LB1234

    LB1234 Member
    Messages: 91

    Yes, something along that lines. You do have to have a minimum amount or you could still lose money. In my blizzard clauses after 15 inches I charge per hour per truck, minimum one hour billing. So if I'm there three times and the plow out takes 20 minutes each time its still three hours of billable time.