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Price ranges for commercial versus residential

Discussion in 'Commercial Snow Removal' started by somervillesnow, Oct 9, 2012.

  1. somervillesnow

    somervillesnow Junior Member
    Messages: 20

    I'm venturing into commercial. I'm pricing my first job. I took my cost data for residential and extrapolated into the commercial based on square footage and other factors. I'm a little surprised it is coming out to $15k seasonal price I need to bid or more for the property I'm working on. For residential I don't have anything over $1500 as of yet. I'm looking for a sanity check. Is it normal for office buildings, churches, schools, malls etc to pay $10-20k for snow/salt work? I realize it depends on square footage etc, but I'm looking for sanity check and rough comparisons at this point.
     
  2. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,953

    Yes.......
     
  3. M.A.H.

    M.A.H. Junior Member
    Messages: 24

    Well on one hand that price is RIDICULOUSLY HIGH, BUT on the other hand that price is RIDICULOUSLY LOW. Well wait a minute you might be right on the money with that price. :p:D

    What's the square footage?
     
  4. somervillesnow

    somervillesnow Junior Member
    Messages: 20

    50,000 sq feet of parking lot & 2500 linear feet of sidewalk & walkways.
     
  5. RLM

    RLM PlowSite.com Addict
    Messages: 1,270

    In my market your 3x what it would go for
     
  6. KYsnow

    KYsnow Member
    Messages: 74

    You can really over complicate the whole bidding process by figuring square footage of a parking lot. You should be able to look at a property and say "this will take 2-3 hours to plow" or this lot will take 1,000 pounds of salt or whatever. You know what your charging per hour to plow and your price to apply salt so you already have your event pricing. Come up with the number of times you think you will plow and salt in a season, add a little wiggle room for errors or a bad winter and your done.

    Of course it's much easier to just charge by the hour and the pound of salt applied. Just add up the hours and pounds applied and your done. Everyone is happy.

    Seasonal accounts that you are talking about are great for planning but at the end of the season most of the time someone comes out on the short end of the stick.
     
  7. RLM

    RLM PlowSite.com Addict
    Messages: 1,270

    If its seasonal pr per push someone comes out on the short end of the stick either way. there are real costs associated with being on "stand by" if the snow flys. IMO seasonal (or a retainer) with a cap would be the ideal, but those are tough to sell.
     
  8. KYsnow

    KYsnow Member
    Messages: 74

    To me seasonal is seasonal with no caps no gimmicks. I cover you for this price all season. I meant per event being priced by the hour or by the pound. Every event may be different depending on how long you were there or how much salt you put down.

    For a guy starting off in commercial its better and safer to charge by the pound and by the hour until they have more experience with pricing and time.