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Discussion in 'Business Fundamentals' started by KrohnEnterprises, Jun 11, 2003.

  1. KrohnEnterprises

    KrohnEnterprises Junior Member
    Messages: 11

    Hi guys and gals. I'm new on this site as of today and I was just wondering how you price your customers for snow removal? I price a certain amount per hr with a 1 hr min. and I charge for touch ups which is usually half of the hourly rate. I was wondering if this is a fair and just billing style or should i try something else? I was also wondering if I should have set prices for certain amounts of snow fallen such as $1 for 1-3" and $2 for 4-6" and so on?(just and example) Thank you for your time and interest.

  2. CT18fireman

    CT18fireman Banned
    Messages: 2,133

    I think you will find pricing to be very regional. Also it depends on whether residential or commercial.

    A lot of plowers get deposits towrd snowfalls, some price per inch, per hour or per push. You really have to find a system that works for you and your customers.

    I charge per push with the idea that I wil plow about evey 4 inches during a major snowfall. Customers are billed every storm. This may be a bit more work but I find it has been the easiest method for us. Customers are happy and never get stuck with "huge" bills. Payments are made on time and gives a steady flow of income for the winter.

    One other thing. We take care of the customer. A late night call to push back drifts or throw a little salt will get charged. If I am driving by and notice though, quite often it will be a freebie.
  3. Chuck Smith

    Chuck Smith 2000 Club Member
    from NJ
    Messages: 2,317

    IF you go to the upper right hand corner of the page, and click on search, then type in the search word 'pricing' you will get 444 results. Not all of them have to do with pricing accounts, but the word pricing appears in them. Go through those, and see what you can find. It should take you a few hours. :D Pricing has been discussed A LOT here.

  4. wyldman

    wyldman Member
    Messages: 3,265

    Do a search as suggested,lots of good info.

    Try to stay away from hourly pricing,as there is no benefit for increased efficiency (only that you get done sooner).
  5. KrohnEnterprises

    KrohnEnterprises Junior Member
    Messages: 11

    Thank you for the info guys. I agree with the hourly pricing, I think I might go with depth pricing or something along the lines of that. Can't wait for that snow!!!

  6. Lawn Lad

    Lawn Lad Senior Member
    Messages: 407

    Hourly pricing doesn't ever allow you to make more than the hourly rate you're charging. Your customers will compare your rate to your competitors and see the service more as a commodity less of a professional service.

    Go through the many posts about pricing. You'll see a whole bunch of different theories.