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$ per hour for my equipment and my drivers need help

Discussion in 'Introduce Yourself to the Community' started by chitown, Nov 7, 2010.

  1. chitown

    chitown Junior Member
    Messages: 7

    I got a contract from a contractor and he asked me how much do i expect to be paid per hour i told him id like to be paid per lot but for now lets leave it as negotiable.I have 2 trucks, a 1978 GMC k 1500 with a 7.6" western and a snowex mini pro 575 spreader and a ford superduty dually with a 7.6" western with a 10 CU ft western salter. i live in chicago,il and we do alot of plowing. last year i plowed for tims snow plowing and i was paid by the lot which averaged out to $1,200.00 for 8 hours but that was from a friend. I'm curious what would be a reasonable price to be paid per hour using my equipment?
     
  2. Wayne Volz

    Wayne Volz Senior Member
    Messages: 694

    Depends

    What do you think the value of your service is worth? But most importantly, what is it costing you per hour to operate that equipment?

    If you are not sure, check out our snow & ice management package that will take all the guesswork out of your bidding. www.profitsareus.com

    Good luck.
     
  3. chitown

    chitown Junior Member
    Messages: 7

    Good question, lets just say im quick and precise when it comes to getting the job done correctly! the only overhead i,ll have is fuel and the driver i pay to operate the other truck.
     
  4. Wayne Volz

    Wayne Volz Senior Member
    Messages: 694

    Ok

    But don't forget about the cost of the truck and plow as well as the operating expenses of the truck and plow. Even if they are both paid for, they will need to be replaced at some point in the future. And oh yes, don't forget about the value of the commitment you are making to your clients (24/7) and the PROFIT margin on the break-even point.

    I didn't think hard enough about cost per hour of operation when I first started. All of sudden I found myself in trouble.

    Good luck!
     
  5. chitown

    chitown Junior Member
    Messages: 7

    Thank you for your advice ill shoot for 50 per hour. think thats fair?
     
  6. erkoehler

    erkoehler PlowSite Veteran
    Messages: 3,268

    $50 per hour?
     
  7. chitown

    chitown Junior Member
    Messages: 7

    not enough?
     
  8. newhere

    newhere PlowSite.com Addict
    from Fenton
    Messages: 1,288

    those plows are about as useless as tits on a nun if you asked me, with that said i think a 7 and a halfer on a couple old beaters should be happy with $60 an hour.
     
  9. Mackman

    Mackman PlowSite.com Addict
    from S.E. PA
    Messages: 1,356

    Yes not enough if you ask me.

    LOL tell us how you really feel.
     
  10. theplowmeister

    theplowmeister 2000 Club Member
    from MA
    Messages: 2,551

    Isn't the supperduty dully wider than the plow, especially when angled?
     
  11. erkoehler

    erkoehler PlowSite Veteran
    Messages: 3,268

    Yes sir.......
     
  12. Pushinsnow

    Pushinsnow Junior Member
    Messages: 29

    I get $70 per hour with a 3/4 ton with an 8ft blade with pro wings as a sub. I'm sure guys around here get at least $100 per hour with plow and sander.
     
  13. REAPER

    REAPER 2000 Club Member
    from 60050
    Messages: 2,228


    Insurance is overhead.
    Wear and tear is overhead.
    Being on call 24/7 is overhead.


    After the overhead is really paid how much do you make of that $50 a hour?
    50 cents????

    When you break down ,as we all do, is that just a "by golly out of luck" or is that overhead that will take money to fix?

    Believe it or not when I 1st started out I had the attitude as well. I own the truck. I am paying my basic insurance. Heck I can work for $25 a hour(many years ago) and make money these guys are insane the way pricing is. (my past thoughts) 1st couple of years I thought I was making money but by the time I paid for the radiator or transmission re-build or the hydraulic hose that blew or the battery that went dead when the alternator burnt out, I was losing money which then seemed like I was paying money to plow.

    I liked doing it but not that much.
    I now understand the true costs and I know the meaning of depreciation of our trucks and equipment. Once I was educated I set my price to work at and accept nothing lower. I will now sit home before losing money like I did in the past.
     
  14. snowtech

    snowtech Member
    Messages: 66

    back when i was first starting out i had the opportunity to hear wayne in person and i drank the "kool-aid" and bought his books. They were very helpful. They will walk you through your operating costs so all you will have to do is decide how much profit you want. give it a try
     
  15. Wayne Volz

    Wayne Volz Senior Member
    Messages: 694

    Thanks

    Thanks for your kind words. One thing I will never do is tell someone what to charge per hour because everyone's overhead, use-rates and profit margins desired are different. However, we owe it to our own companies to know our break-even point and price accordingly from that point.

    Good luck to everyone this year. We had our first snow flurries here Friday night. However, it is going to be nearly 70 all week. Mother Nature is giving us time to get leaves cleaned up! LOL
     
  16. cold_and_tired

    cold_and_tired PlowSite.com Addict
    Messages: 1,246

    So you plowed all last year and you have no clue what your operating costs are? Figure those out, account for profit and you will have yourself a good figure.

    $50 an hour is way too low.
     
  17. performanceplus

    performanceplus Senior Member
    Messages: 111

    50 bucks is way to low. I am in CT and I get 110 for a 3/4 ton with a sander.
     
  18. NorthernSvc's

    NorthernSvc's Senior Member
    Messages: 766

    although 50 is low ( really low)... keep in mind trucks are old = unreliable, plows are small = not efficient.
    i pay my subs 90-110 based on exp.. BUT must have newer equipment and atleast an 8 ft blade..
    also depends heavily on where in the chicago market you are... up by me you will make more per hour but work less...
     
  19. Wayne Volz

    Wayne Volz Senior Member
    Messages: 694

    Nice

    That's the way I like it too! Less work at a better margin selling the service on the VALUE of what we are actually doing. We are not selling plowing, pushing, or ice melter in my opinion. That's what we do in order to accomplish the real goal of SELLING our services based on the VALUE OF OUR COMMERCIAL CLIENTS REMAINING OPEN AND BOTH THEIR EMPLOYEES AND CUSTOMERS CAN SAFELY GET INTO THEIR BUSINESS TO BUY THEIR PRODUCTS AND SERVICES.

    Working less at a higher margin will work for snow & ice management. We don't need days of work we need hours of work. This allows us the opportunity to go after a clientele that is willing to pay more for faster response times. At the end of the day, clients will pay for it. Why? You can't put a price on SAFETY!