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raise price or put in limits on contract

Discussion in 'Business Fundamentals' started by bullit340, Oct 20, 2015.

  1. bullit340

    bullit340 Member
    from Mass
    Messages: 87

    I have an all inclusive contract that I have been doing for 6 years. We are cutting it close after job costing etc... but then again we can get that soft winter with little snow which can change every thing making it hard to raise the price.

    Was debating if I should raise the price a bit or put in some stops like maximum inches etc.. and keep the price the same. If I went with caps on inches it would be an extra cost for those bad winters over the inches cap amount

    Anyone do something like this?
     
  2. jhall22guitar

    jhall22guitar PlowSite.com Addict
    Messages: 1,044

    Personally, I think the limits is the way to go BUT i would personally tell them about the change. I wouldn't want them to sign thinking nothing changed because they trust me, then hit the limit and start charging them more and have them feel like i tried to sneak one by them. (Although yes they should read the contract and see the change, but still as a courtesy)

    Plus if you tell them about the change you can speak to them about the rising costs of supplies, equipment, etc that are contributing to the need. And also doing the limits helps them adjust since the cost isn't rising on a normal year, so that could keep them comfortable.
     
  3. Turbs3000

    Turbs3000 Junior Member
    from Midwest
    Messages: 20

    What we do on flats is average the snow fall over the past decade to come up with a base number of inches. Then we put in the contract that if it exceeds that number by say 20% it will be XX much more. If it's a super light winter and it's 20% less we will charge them XX less.