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pricing questions

Discussion in 'Bidding & Estimating' started by articsnow, Oct 31, 2015.

  1. articsnow

    articsnow Junior Member
    Messages: 7

    hello,

    I guess I would say I am a noob when it comes to starting a snow removal service this winter, but I do have quite the experience. I am not looking for anyone to tell me I need to go work for someone else first, or that I need to learn the business before I set out on my own. I am doing this myself, and I have the necessary skills to be successful. So here is my question: I am not sure what to be charging for customers. This is for RESIDENTIAL snow removal only. I have checked pricing with other competitors and checked the average cost for snow removal in my local area. which is in southeast Michigan. anywhere from 30-40 per push, depending on snowfall. I would like to know either a formula that is popular to use, or whether charging per push, or per inch would be the way to go starting out? any help or advice would be greatly appreciated. I have read all the beginners thread to get some insight, but hasn't proved helpful. thanks in advance.
     
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Flat rate price,it snows you plow it.
     
  3. articsnow

    articsnow Junior Member
    Messages: 7

    Im sorry, but that's ridiculous. if it snows 12" I should be charging more than if it snows 2". I am asking for a formula, or advantages of per push, to per inch pricing ect...
     
  4. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    why? Explain.
     
  5. articsnow

    articsnow Junior Member
    Messages: 7


    its fiscally irresponsible. If it takes me 20 minutes to remove 2" of snow, and an hour to remove 12", then im losing money, time, and wear and tear on my equipment. have you even done snow removal before? Whether you charge by the hour, or by snowfall, it costs more, and is a much better than charging a flat rate no matter the amount of snow.
     
  6. jhall22guitar

    jhall22guitar PlowSite.com Addict
    Messages: 1,044

    Ok so someone gives you an idea and you bash them, if you do not know how to price a driveway to plow on your own, you should be subbing for someone else first.

    You need to know your running costs, fuel, equipment repairs, insurance, etc so that you can find out how much you need to make in an hour.

    The problem with talking to people on here without having any clue on how to price the driveways already is that the rates for them change so much across the country. there are areas that you will only be able to charge $20 for a driveway others can charge $60+ for. It all depends on the market and what it will allow.

    Go sub, learn how to price. Just because i go buy all the equipment to run a fire station doesn't mean I should.

    But to answer your question, see the above (know your costs so you know how much you have to make), and then in my area a per push is the way most residential accounts are done. here a 3" trigger is popular.
     
  7. jhall22guitar

    jhall22guitar PlowSite.com Addict
    Messages: 1,044

    He does seasonal contracts and makes money even if there is no snow, I wouldn't bash him. He has a lot of knowledge you could use.
     
  8. 1olddogtwo

    1olddogtwo PlowSite Fanatic
    Messages: 11,521

    yea Grandview, have you even done snow removal before?

    or are you:.....fiscally irresponsible
     
  9. 1olddogtwo

    1olddogtwo PlowSite Fanatic
    Messages: 11,521

    did you misspell ur name on purpose?
     
  10. dieselss

    dieselss PlowSite Fanatic
    Messages: 10,963

    Subscribed
     
  11. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Well I did stay at a Holiday Inn,and I just bought a boat load of furniture yesterday.
     
  12. LapeerLandscape

    LapeerLandscape PlowSite.com Addict
    Messages: 1,597

    We need to give this guy a brake. He's from southeast mich, the same place the Detroit Lions play. :laughing:
     
  13. articsnow

    articsnow Junior Member
    Messages: 7

    i think I'm being misunderstood. Im not trying to
    Bash anyone. I asked a specific question and was answered with a very generalized answer. I'm aware I can charge a flat rate. i also know what my costs are to run equipment, fuel, ect... I have done the research. As far as pricing goes, I do know what the local rates are going for. I'm not asking how much to charge, I'm asking for pros and cons of "how" to charge for the snow removal of residential homes, without contracts. I know of the 3" trigger. Which is probably what I will use.
     
  14. articsnow

    articsnow Junior Member
    Messages: 7

    Oh god, don't remind me about the lions lol they are aweful this year!
     
  15. jhall22guitar

    jhall22guitar PlowSite.com Addict
    Messages: 1,044

    Pro's of a 3" trigger:
    - Get paid for every 3"
    - Customers know you will be coming and when(ish)
    - Charge for sidewalks and salting extra (sidewalks if that fits your market, some include)
    - You know when to plow

    Cons:
    - What if 2.9" comes
    - Where do you measure
    - Why should customer trust you


    Go Patriots, I deflated the balls.
     
    Last edited: Oct 31, 2015
  16. Randall Ave

    Randall Ave PlowSite.com Addict
    Messages: 1,976

    I heard Grandviews becoming a pro golfer, so good he's plowing there lot for free!
     
  17. 1olddogtwo

    1olddogtwo PlowSite Fanatic
    Messages: 11,521

    His page on backpage is gone, new profession?
     
  18. FredG

    FredG 2000 Club Member
    Messages: 2,214

    Subbing will not teach you how to price. I doubt any contractor will be willing to share this information with you. And if they do they will tell you some high price.

    Just make sure your clients know your coming every 3 inches. Charge the 35 40 $ as you say is the going rate in your area. If you get somebody that wants to wait till the storm is over for the same price they are not having on your route.

    I'm not a residential contractor. Some guys charge by the inch. I do not know this formula. Hopefully someone will help you with it. I would stick to a 3 inch trigger and forget about it.
     
  19. articsnow

    articsnow Junior Member
    Messages: 7


    Lapeer, you do know you live Michigan right? just because your in a different part of the state doesn't mean you don't have to claim them! The're your team too!
     
  20. MSsnowplowing

    MSsnowplowing Senior Member
    Messages: 711

    The irony here is you answered your own question.

    the average cost for snow removal in my local area. which is in southeast Michigan. anywhere from 30-40 per push.

    So pick a trigger amount between 3-6 and charge them that.

    There is no magic formula.

    You either charge them by push based on inches or a seasonal rate.