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Per-Push Contracts

Discussion in 'Commercial Snow Removal' started by MIPLOWER, Sep 16, 2010.

  1. MIPLOWER

    MIPLOWER Junior Member
    Messages: 22

    I am rather new to the business, I have a few questions and i was just wondering.
    On Per-Visit Contract, say it snows 12" do you still charge Regular price lets say $25 or do u charge 2x's the regular price $50.00.

    Thanks for any help or input
     
  2. JDiepstra

    JDiepstra PlowSite.com Addict
    Messages: 1,780

    You charge whatever your contract says you are going to charge.
     
  3. Italiano67

    Italiano67 Senior Member
    Messages: 640

    If it snows 12 inches I would have been there at least 3 times. Thus 3 times the per push price.Capiche?
     
  4. SServices

    SServices Senior Member
    Messages: 163

    X2. Except when they are closed then every 6" I push.payup
     
  5. viper881

    viper881 Senior Member
    Messages: 458

    Just make sure you word the contract correctly.
     
  6. second income

    second income Member
    Messages: 82

    How we bid jobs---its a simple formula that works! Example
    2" -5" $100.00
    6_-9" $150.00
    10"-12" $250.00 an so on you keep adding 50% of the initial push
     
  7. pcslawn

    pcslawn Junior Member
    from iowa
    Messages: 3

    Q's

    ok big storm cloud its snows hard 2"-3" fall you push got it all clean 45 min pass 2"more fall is that one push or too 2" push ??
     
  8. Grn Mtn

    Grn Mtn PlowSite.com Addict
    Messages: 1,644

    if its a per push contract its 2 pushes, if its seasonal it doesn't matter, and if its per storm it counts as 1
     
  9. Brant'sLawnCare

    Brant'sLawnCare PlowSite.com Addict
    Messages: 1,754

    Each time I plow, I charge. When people complain about us plowing to much, I tell them, hey it's to hard on stuff to let it pile over 6", and YOU signed the contract. This year if people squack, I am going to drop them right away. I don't need that anymore.
     
  10. pohouse

    pohouse Senior Member
    Messages: 322

    Your talking about two different ways of billing. Per push is just that. Each time you show up and move snow, you get X amount. Another way of billing is per storm, where the accumulation total determines price. Per storm contracts take into consideration that for a 12" storm, the contractor may have to plow 2 or 3 times, therefore the price is higher. What is most important is that the contract be very clear as to how the client will be billed. There are pros and cons to both.
    I have found alot of businesses like the per storm billing. They feel more comfortable knowing exactly what it's going to cost. People can be afraid of the 'per push' especially during a heavy event, because they can't control how often the contractor comes to clear the lot. I have a mix of both types of contracts.
     
  11. JDiepstra

    JDiepstra PlowSite.com Addict
    Messages: 1,780

    I like the way you think. When you run your own business, you get to pick who is lucky enough for you to be servicing them. Complainers are not tolerated.
     
  12. pohouse

    pohouse Senior Member
    Messages: 322

    I see your point. But sometimes handling complaints and getting paid is better than eliminating customers, especially if you have a small customer base. I appreciate it when a vendor acknowledges a complaint I may have and works through it, instead of refusing to provide service to me.
     
  13. JDiepstra

    JDiepstra PlowSite.com Addict
    Messages: 1,780

    I agree with you. I'm not dropping someone for a phone call but if I have someone who calls "often" they are gone. This has never been an issue for me in snow removal. More so with lawn customers. For example if they are calling to find out why I didn't more their lawn every time it rains on their mowing day..... goodbye.
     
  14. second income

    second income Member
    Messages: 82

    we charge in increments, if 2-5 in 24 hours it is one price, usually if you get an additional inch after you have plowed we will salt anyway so that will take care of any additional accumulation. Lets face it, if you are billing yourself out at $275 -$300 hr per truck on a small walgreens type lot you can blow through an additional 2 inches in no time and still make $250 in your pocket. Those types of occurrences rarley happen. You make up for it on those 6-9 storms, we know that 6-9 aint much tougher than the 2-5 and it pays us 50% more. You also make up for it on calcium on the walks, which in our neck of the woods yields a nice profit.
     
  15. lawnlandscape

    lawnlandscape Senior Member
    Messages: 374

    I have personally found that charging differently based on the amout of " on the ground is a bad idea. There are a lot of guys here (probably most) that do it, but you will have many times thoughout the year where you get into disagreements with your customers about how much was actually on the ground. These disagreements will cause you to lose those customers is future years.

    We do everything on a season contract (which is risky because its based on an average year), or a set per visit price. Our contacts also state that anything over 8" will be a 2 visit storm (providing we can get to all our properties on time). That means after 6" has fallen, we make a visit, they get billed, and then at the end of the storm we make a second visit, they get billed again. This is straight forward pricing that everyone can understand.
     
  16. kjmahon

    kjmahon Junior Member
    Messages: 3

    per push

    Every 2 inches is a push in my contracts.
     
  17. MileHigh

    MileHigh PlowSite.com Addict
    Messages: 1,827

    You need a trigger depth...

    You can plow anytime your trigger is reached.

    Don't plow for free.
     
  18. 5280TOM

    5280TOM Junior Member
    Messages: 8

    Be sure to write in your trigger depth in your contract. It will dictate when and what you plow and then you don't have to have heart ache about what your customer may or may not agree with. If the trigger is 2" and you go out twice then you charge twice. Trust me once you start haggling you will likely train that customer to "NOT" repsect the contract and more importantly the trade of professional snow removal. We have a ton of variables to consider labor, fuel, maintenance, oh yeah and profit!!! Let it snow!
     
  19. second income

    second income Member
    Messages: 82

    In reference to the amount on the ground issue, we go by what the National Weather service states. I have never in 25 years plus in this line of work had a disagreement about snow depths.
     
  20. lawnlandscape

    lawnlandscape Senior Member
    Messages: 374

    wow, you must not have very many accounts. What if its snowing 3" per hour?