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pricing commercial lots

Discussion in 'Commercial Snow Removal' started by lucky921, Jan 10, 2013.

  1. lucky921

    lucky921 Senior Member
    from dracut
    Messages: 453

    what the best way to do it by the inch per storm or by the season. how do you price sanding lots
     
  2. Buswell Forest

    Buswell Forest PlowSite.com Addict
    from NH
    Messages: 1,668

    Per push. They decide how much for the trigger. Sand = 3/4 the price of the plow price. Shoot for $100 / hour minimum for a 3/4 ton and 8' plow....and up from there...so if a lot takes you 30 minutes, $50 minimum...and more is better.
     
  3. beanz27

    beanz27 Senior Member
    Messages: 984

    BEFORE grandview comes in here.

    Go seasonal.
     
  4. ducaticorse

    ducaticorse PlowSite.com Addict
    from we
    Messages: 1,426

    MUCH easier said than done these days.
     
  5. beanz27

    beanz27 Senior Member
    Messages: 984

    Well if it would actually snow. We need more winters like 2 years ago. That would have been a good year. Oh well, maybe someday it might snow again.
     
  6. joe2025

    joe2025 Member
    from NEPa
    Messages: 56

    Grandview would be right in saying that seasonal for larger commercial accounts are the only way to go. But as Ducaticorse also said “easier said than done these days” If you want to somewhat guarantee yourself some profit than go seasonal. I checked with some of the larger accounts around here this fall and was surprised at how many that use to be seasonal are now per push. Even Wal-Mart which has been seasonal and locally contracted out is now per push. They are getting harder and harder to find but they are still out there. Landed a five year seasonal this year thank god, at least I’ll have some money coming in if it doesn’t snow much. Like everyone else is saying on here lately, we all need to have a winter with a lot of events to get clients to rethink per-push vs. seasonal.
     
  7. Buswell Forest

    Buswell Forest PlowSite.com Addict
    from NH
    Messages: 1,668

    I want to change my opinion, don't know what I was thinking...

    For large lots, say anything that takes more than 20 minutes of plowing, you really have to charge for the amount of work done rather than by the hour.
    I figure it like this, when I'm not half asleep..
    If it would take 2 men and 2 shovels 8 hours to do what I can do in 30 minutes..
    And those men would be paid $20 per hour each...then it's not unreasonable for me to want at least 1/2 of what the men would make..

    So, 30 minutes = $160.

    I know I'm pretty close with this analogy, because I have 3 lots that take about 30 minutes each with this new V plow...and I make $150 / $170 / $170 respectively...and I know that I underbid a couple outfits to get them. I charge $20 less for the one because it's paved and easier overall.
     
  8. snoboss

    snoboss Member
    Messages: 57

    100 per hour for pickup? I have trouble at 65 per hr for one tons 8.5 and pro wings. I get outbid more and more at that rate. It is a race to the bottom!
     
  9. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    All it takes is one good storm at the end of the season and they will sign up for next year. Also I sell them as "cash flow" management ,this way they know what they will pay each month without any surprises. Or you can scare them into one by telling them one good week of snow and it will equal a full season price,
     
  10. lucky921

    lucky921 Senior Member
    from dracut
    Messages: 453

    thanks for the replies i take it the prices is per pass and what is the inches you go by like 0-3- 3-6 and so on.i do condos and do ok most of the time . but with the sanding i have a hard time pricing i pay around $100 a ton for salt .on the bigger lot you could use anywhere from one to say five ton a lot how you do that thanks
     
  11. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I think you need to find someone else to supply your salt. Seasonal for me is going out after 2-3 inches on the ground.
     
  12. ducaticorse

    ducaticorse PlowSite.com Addict
    from we
    Messages: 1,426

    Just a thought here, but it is of my opinion that trying to get a seasonal price at this time on a lot in MA is going to bring you trouble. We had zero snow last year, and it's been under standard so far this year. Selling a client on a seasonal price is going to be a total crap shoot. You'll probably have to go dirt cheap to get them to sign, and I mean cheap as in if snows more than two times the rest of the season, you're going to lose.

    GV makes an excellent point with cash flow management and a half dozen larger per push storms equaling a seasonal price, but around these parts, it's a tough sell now a days, and also very risky to both sides given the out of whack totals the last cpl years. It's an especially to the smaller clients.

    Just my 2cents
     
  13. lucky921

    lucky921 Senior Member
    from dracut
    Messages: 453

    gv that seams to be the price around here for salt i no guys who pay more.i'm thinking all this for next year tired of being a subcontractor . why do some places ask if you are licensed to plow didn't't no there was one.
     
  14. Nutz4Plowing

    Nutz4Plowing Member
    Messages: 30

    I noticed alot of resistance to seasonals lately because of 2011-12 being so uneventful. What I did with a few accounts is dropped a little on price and put in a cap on inches plowed for season and number of times salt would be applied. Most of them bit. They felt they were getting something to help compensate them if we have a dry season. I in turn get to prevent from getting hammered if the Feb- Mar months crush us with excessive loads.
    The newer generations are looking to save money, so why not give them a feeling of security and savings and give yourself the security. They are going to feel like they will win the gamble, you are fixed not to exceed your estimate and its win for you.\
    Always bid the amount of snow and work you have with per push, always bill for the salt used and don'tforget your time and equipment that goes into salting fom ordering, pickup/ delivering, loading spreader, loading material, touchups,cleanups, billing/admin time,insurance business, insurance vehicle, state requirements, taxes, payroll, accountant, and your overall preparations that go into being prepared to deliver servicess 24/7......did I mention phonebill, and having to answer the damn thing 800 times during an event.
    So with just some of that mentioned I would just like to say why not be creative with your seasonal rates and specs. It seems to be something that people go for and really covers you on possible end of world snowfall late in the winter scenario.
    I know someone here will say that is not seasonal, but your estimate may have a few extra trips in it and a little more salt, but you are in no way going to be able to offset your seasonal losses with a few perpush accounts. So why at best would you want to go out and do all that just to break even.
    Its seems to beworking so far and if someone has a possible challenge to the downfall of capping a seasonal please let me hear it,seriously, I haven't had it not work out in my favor yet. Thanks
     
  15. ducaticorse

    ducaticorse PlowSite.com Addict
    from we
    Messages: 1,426

    There is no "plowing license" in MA. You need to have basic insurance on your plow truck, and a class D (standard) drivers license to operate a plow truck on a public way. As far as business licenses are concerned, depending on the town you are in, you may need to register your business. As always, if you are running a legit business, as an owner operator, you should be carrying liability insurance. If you have "employees" either use a labor agency or carry your own workman's comp policy. If you have "subcontractors" make sure they carry their own liability AND workman's comp, otherwise your own WC and Liability premiums will go up based on how much you pay them out when you get audited.
     
  16. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Some towns want you to have a plow permit.
     
  17. ducaticorse

    ducaticorse PlowSite.com Addict
    from we
    Messages: 1,426

    Anything is possible....