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Pricing Driveways and Parking Lots

Discussion in 'Business Fundamentals' started by cgillispn, Mar 25, 2004.

  1. cgillispn

    cgillispn Member
    Messages: 38

    Ok, I am going to be bidding on driveways and parking lots for next winter. We will have 2 Trucks, 1 F350 w/9' plow and 2 yard sander and 1 F250 w/8' plow and 2 yard sander. What are some of the things you look for when pricing out a parking lot or driveway? I do plan to have a friend/contractor show me around and help price out parking lots but any tips would be appreciated. Thanks, Craig
     
  2. rainair

    rainair Senior Member
    Messages: 153

    this is how I do it ,,,, I look at the lot, ok does it have obstacles that will impede my time plowing?..... i.e. landscaping/parking strips? what is the time worth, and what travel time will I have. where are the drains ... what time do they open for business.. check other area contractors to what they figure per hour.. not lot... some here go by per visit and per min after that... and also per 2 inch incrment..... I just redid my contract for 2005 and put in a gas price spike clause of 10% over $2.00 a gallion, and a blizzard clause... CYA.... note your insureance and ware and tare.. you must know what your going to ware out when plowing..Its very hard on a truck to plow... just a few things to think about...Bill
     
  3. JMR

    JMR Senior Member
    Messages: 567

    I do mostly commercial snow removal. I bid 3 different ways. All have their advantages and disadvantages. I have contracts that are done by the hour. I have contracts by the push. I also have contracts by 24 hour storm totals.

    As a general rule of thumb an average driver, with an average truck 7.5' blade, average lot, with minimal obstacles can push 43,000 square feet of parking lot 2" of snow in 1 hour. I add for obstacles etc. I use this for my bidding base. Better and larger equipment should work to the contractors advantage. From this I can develop a 2 inch price and work from there.

    So next I figure the inch increments. I use 1-2.99" at $x, 3-4.99" at 125% $x. To get the next increment I take the previous increment and multiple by 125% or 1.25. I go to a blizzard clause after 12". Which means I charge whatever I feel I need to get in order to get the job done. I go with a 1" trigger on most retail commercial lots. 2" trigger on most other commercial or industrial properties.
     
  4. Dwan

    Dwan Senior Member
    Messages: 879

    I charge a flat $75 per hour for F350 w/8.5' Meyers blade, $100 for 9.2' boss v blade, 125 hr. for 975 bobcat with 3yd/9' bucket, $125 ton for sand and $75 for 12 yd dumptruck. Customer gets what he pays for and I get paid for what I do.
    Don't matter what a lot looks like, shaped like, or how offten I plow. oh I add 25% for dirt lots. nothing has changed in 25 years and I don't plan on any changes in the near future. most contracts are signed for 5 years. I also offer a 10% discount if invoices are paid within 10 days. My customers love my work and happy with the pricing.

    Dwan
    PS; ware is the spell checker?
     
  5. Big Nate's Plowing

    Big Nate's Plowing PlowSite.com Addict
    Messages: 1,266

    $125+ an hour per truck
     
  6. Plowman36

    Plowman36 Junior Member
    Messages: 5

    I'm new here in this forum. I think it’s great.

    In my area (I do strictly residential), I gauge my pricing in time. I charge $5.00 per minute. If it takes me 10-minutes to push/pull the driveway, its $50.00. I also include sidewalk shoveling time. I bring along my son who shovels the sidewalk (on some customers) and in front of the garages while I am doing the driveway. In most cases, he is done at the same time I finish the driveway. I find this much faster that bringing a snow blower along (unloading and loading time) and my son gets a workout.

    I have been plowing 20-years this way and some customers pay me $25 every time I go, and some pay $130 each. I have had most of the same residential customers for 15+ years with some since I started.

    These rates are good from 1" to 11" per visit. At 12", I raise my rates to 1.5 times and 2 times for 18" plus. I will usually start plowing at 12" if I know its going to be a big storm otherwise I wait until it’s over.

    I do not use contracts, I bill usually at the end of every month, and most of my customers pay on time.

    After each storm, I calculate my earnings and it averages $300+ per hour.

    Plowman36
     
  7. kl0an

    kl0an Senior Member
    Messages: 215

    $5/min x 60 = $300

    Who's paying you to drive between accounts??
    Not much time for travel there.. You got a Nascar pitcrew doin your refueling??
     
  8. Flipper

    Flipper PlowSite.com Addict
    from CT
    Messages: 1,180

    My $30-$50 driveways take less then five minutes to plow. If I charged by the minute pricing would be different. We do 20+ drives an hour at a minumum of $30 a push.
     
  9. avalancheplow

    avalancheplow Senior Member
    Messages: 265

    I do commercial and residential. My residential start at $25. And commercial I try to get $125 per hour per truck. Look at the lot and think how long it will take you. If you think it will take you 4 hours then i would charge $500 per time you clean it. On my small commercial i charge a fee for the first time I plow it for example it takes me 1/2 an hour then the first 1-2" $125 then $60 for every time after that. Thats just how I do it. :drinkup: