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pricing per storm/inch

Discussion in 'Commercial Snow Removal' started by jgil629, Sep 28, 2009.

  1. jgil629

    jgil629 Junior Member
    Messages: 7

    Hey guys,

    I'm pretty new to the site and had a question about winter pricing. I've been in business for several years and plow both residential and commercial accounts. I received a couple of RFPs for restaurants this season that require a "per storm" price. In other words, a price for 1-3", 3-6", 7-10" etc etc...

    I'm wondering if anyone prices this way and how they work it out. I price commercial by the season and I sometimes find myself going out a second time after a small 3-4" storm to clean up spots that I couldn't get before because of parked cars, etc but I don't care because it's a seasonal price; I just plow as needed. Those who use the per storm method, would you add a percentage of your regular push price to each storm for cleaning up parking spots after the storm? Or would you jsut charge two whole pushes? How do you arrive at your base push price per storm? I've tried searching for this topic already but haven't really found a good answer so I'm sorry if it was already addressed.

    Thanks for your help.
     
  2. big acres

    big acres Senior Member
    Messages: 653

    Going to read you the riot act... not caring because it's a seasonal price means you have no clue how much potentially free work you have performed. How do you know how your really doing on a seasonal contract? What do you print up to show the client all the extra service you've performed when they are considering leaving you or b*itching about something trivial?

    Ok, lecture over.... let's assume you can clean up a few stalls in fifteen minutes on site, and you have 14 events per year. I might estimate that half (7) of those events would happen overnight when the lot is empty and not require a clean-up unless they specified drift clearing or slush plowing to be included. You have a minimum charge of one truck hour, so add seven truck hours to the season, or 1/2 hour per storm. Hope this helps.
     
  3. TCLA

    TCLA 2000 Club Member
    Messages: 2,699

    "Per storm" is different from "per push". It's not uncommon to push a property 2, maybe 3 times during one storm that may last 18-20 hours.
     
  4. big acres

    big acres Senior Member
    Messages: 653

    Good point... I don't see many "per storm" bid requests up here and prefer to keep it that way!
     
  5. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,868

    Per storm--one push when the storm is over

    Per inch--you have a charge for every time you push that number of inches.

    Per push--a set rate for every time you push, whether it is .5" or 26"

     
    Last edited: Sep 29, 2009
  6. big acres

    big acres Senior Member
    Messages: 653

    C'mon Mark, I'm sure you have an index of threads you could refer him to? ... after all, you have been elected the new plowsite archive specialist -haven't you?
     
  7. jgil629

    jgil629 Junior Member
    Messages: 7

    Big acres, your suggestion makes sense and that's essentially what my concern was. As far as me not caring if I have to return with my current customers, I meant that more figuratively than literally. I have a max on my winter contracts with additional charges after we exceed those number of visits so I'm always covered...I'm just more willing to go out a second time having that type of retainer than if I had just charged for one push for a 1-3" storm that happened to hit during the middle of the day.

    The way the contract is written up for "per storm" is not necessarily one push after the storm. They want one price for each storm category. In other words, if at the end of the storm, snowfall totaled 7 inches, then they want me to bill them for whatever I quoted them for a 7-10" storm -- regardless of the number of times I had to go out (which would likely be 2 or 3 times to keep their lot open).

    All in all, it's a pretty crappy way to set up winter pricing in my opinion but I'll take your advice big acres and just allow for the occasionial overnight return.
     
    Last edited: Sep 29, 2009
  8. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,868

    Crappy, indeed.

    Then you need to determine how many times you are going to plow that location, based on some historical data of how many storms you have that are 1-3; 3-5; 7-10 etc.

    If you're going to plow them once in a 1-3" storm, that's your price.

    Twice in a 3-5", for instance, double the price.

    3 or 4 times for 7-10" triple or quadruple the price.

    And maybe figure some extra time for returns\cleanups.
     
  9. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,868

    Just lazy this time. ;)