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Pricing Residential

Discussion in 'Bidding & Estimating' started by EPS, Oct 6, 2007.

  1. EPS

    EPS Member
    Messages: 66

    I was wondering what you guys are charging for seasonal rates around syracuse area? I have a great guy helping me out with pricing and he is right about what he tells me but I would like to know what you all charge.
     
  2. EPS

    EPS Member
    Messages: 66

    pricing

    :cry: Anybody that can give ballpark figure that would be great!:cry:
     
  3. ondagawood

    ondagawood Senior Member
    Messages: 128

    $30 for residential driveway. This is my first time doing this, I could go $25-30. As long as I can meet a goal of about 20 accounts or so, I'd be happy.

    Scott payup
     
  4. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I thought that your area or was it Rochester guys were charging 150-175 for the season. Check you local papers they should be advertising now.
     
  5. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    For a SEASONAL rate? (I know, you misread.) Really, though, you want to set a monetary goal, not a number of accounts. Figure your fixed and variable costs; that will let you know your break-even point. Figure in some percentage of profit. This is your goal for the winter.
     
  6. EPS

    EPS Member
    Messages: 66

    Pricing

    I believe the going rate for the syracuse area is 225 to 275 for the season or about 25 to 45/push. I dunno, I have been charging 240/season.Just wanted to know if I should raise it or keep it the same?
     
  7. ondagawood

    ondagawood Senior Member
    Messages: 128


    Yeah I guess I did, I was thinking for each storm. I'm not sure if I should (or how I) go with a seasonal "contract". Let me ask if the heavens open up and LOTS of snow comes down, do we (you) still make enough money (profit) or whatever ?
    Pleae advise - :dizzy:

    Thx,
    Scott :waving:
     
  8. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546


    Yes. First, I have a mix of seasonal and per push accounts, so I win no matter what it does over the winter. Second, figure that most people who want seasonal, want it that way so they have a fixed cost for plowing for the winter. So, now you figure your seasonal contracts so you wouldn't "lose" money even if you had to plow every day of the winter. Let's use one of mine for example. It's a very small parking area in front of a garage - takes about three minutes to clear 3" of snow. It's about a two mile trip with a couple more per push accounts in the area. I average seven trips there over the winter. This winter, I gave him a seasonal price of $440. Now, I figure it costs $5 a trip and I could POSSIBLY make 90 trips a winter (every other day for six months - Nov to Apr) and the other places make me $70 a trip. So, if I had to make 90 trips, I'd almost break even on the seasonal, but I'd make $6300 on the per push ones. If it only snowed twice all winter, I'd only make $140 on the per push, but only $430 on the seasonal ($440 - $10 costs).

    Does that help?

    Let's use the more actual seven trips per season average. It cost $35 to make the trips to make seven trips, so I make $405 on that account. But I also make $490 on the per push accounts - so they really come out pretty even (the per push accounts I charge $35 each per push). So that totals $895 for an "average" season.
     
    Last edited: Oct 8, 2007
  9. ondagawood

    ondagawood Senior Member
    Messages: 128


    Wow, thank you I will start figuring my "new" venture based on your scenarios. I really appreciate you taking the time to do that. I'll try doing it "both" ways, when I start getting phone calls (hopefully soon). When do you start the contacting of your "contract" customers and the per push cust., do you advertise some how & when ?
    Thx,
    Scott pumpkin: payup
     
  10. EPS

    EPS Member
    Messages: 66

    I would start advertising now! Alot of people are looking for plowers now and alot of people wait till there is 6 in of snow in the driveway. Advertise now thru atleast end of november. Thats just what I would do.
     
  11. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    Mine are actually all repeat from last year and year before. But, to advertise, I'd advise starting now - Sept would have been good.
     
  12. ondagawood

    ondagawood Senior Member
    Messages: 128

    Yeah, I just started this past Sunday morning - flyer in with my neighbors paper, plan to do more too. Grocery store I pinned up some business cards, also free ads online too.

    Thx again,
    Scott