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Pricing Issues....

Discussion in 'Introduce Yourself to the Community' started by Lawn_Enforcemen, Dec 17, 2007.

  1. Lawn_Enforcemen

    Lawn_Enforcemen Junior Member
    Messages: 8

    Im new to the snow removal world as far as operating my own snow removal business. I have worked for some and they charge 65 per hour and .30 cents for lb of salt..... I was figuring since i own my own blade for my truck 8 foot and hopper on the back what is a reasonable rate... I know you guys are thinking"we dont know what your overhead is or anything" but a general question of is 45 per hr decent and .23 cents for salt a good start in the snow field... Thanks
     
  2. daveintoledo

    daveintoledo Senior Member
    from nw ohio
    Messages: 115

    no

    buy the time you buy plowing insurance, and commercial plowing insurance for your truck.. you are loosing money..

    and no, your general liability for your lawn care service wont cover you, neither will your general auto insurance....
     
  3. Lawn_Enforcemen

    Lawn_Enforcemen Junior Member
    Messages: 8

    Dave I already am covered for General Liability and Yes in the state of Ky its only an additional 186 dollars a year on top of my commercial insurance/ general liability... so with that being said what is a fair price?
     
  4. daveintoledo

    daveintoledo Senior Member
    from nw ohio
    Messages: 115

    thats not too bad....

    for the extra coverage, ....i try and get 125 per hour... but in reality i bet i average around 90......and ohio is a pretty economically depressed area.....

    i guess you really shoud do a business plan, and figure out your total expenses plus the desired profit margin....thats how i come up with my prices.....there are SO MANY plow guys out there, its tough, but set the bar high, you will get work..

    better to have 5 100 dollar lots, then 10 50 dollar lots right.....:drinkup:
     
  5. turbo5560

    turbo5560 Senior Member
    Messages: 285

    well i'd say $45 is fair to stat out with.... i've been doing it two years and thats by average rate. While i'm not making bank the bills are being paid! Though i'd say .25 cents for salt. I think there is more money in salt then plowing. good luck!
     
  6. itsgottobegreen

    itsgottobegreen PlowSite.com Addict
    Messages: 1,351

    I won't even drive someone else's truck for $45 an hour. You should be at least getting $100 per hour. My hourly price is well above that.
     
  7. v-plower

    v-plower Senior Member
    Messages: 118

    Don't sell yourself short. At $45 you're leaving some dough on the table.
    I wouldn't even start my truck for less than $85 per hour. Fuel prices are ridiculous! Don't go by last years numbers as fuel is much higher now.

    Sine it is a 1 hr minimum you could get away with the lower price if you have a bunch close to each other and make some good money if you get enough.

    Also take other things into consideration. Will the driveway suck to plow? Is it out of the way?

    Start high and if you don't get any accounts drop the price a bit but don't undercut by 30-40%.
    Give the customer an incentive to use you instead of someone else. Maybe a $30 gift certificate to a local restaurant when they sign with you. You should be able to get a restaurant to give you a decent discount if you buy a bunch of them.
    Maybe offer them a free service such as 2 free mowings for a lawn and plow contract. Always make this the last 2 mowings of the season.
    $25 off a fall/spring cleanup

    GL
     
  8. Lawn_Enforcemen

    Lawn_Enforcemen Junior Member
    Messages: 8

    Thanks everyone for their suggestions greatly appreciated
     
  9. Plowin in VT

    Plowin in VT Senior Member
    Messages: 233

    Incentives always work well. Once you get the contract, offer them a discount for each referral that signs a contract.

    Also, contact all of your summer jobs and let them know that you are in the plowing biz and offer to come by and discuss it w/them.

    $45/hr seems very low, but I do not know your area.

    Good luck.