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Rates - Fees in your area

Discussion in 'Business Fundamentals' started by kipcom, Nov 3, 2003.

  1. kipcom

    kipcom Senior Member
    from Indiana
    Messages: 455

    I am now very curious to see if the snowplowing rates are falling like they did in the lawncare business. Here in indy I have heard rates as low as $45.00ph, what are rates doing in your area ? And while we are at it, how much do you pay your Subs ?? Is it the economy ?? OR ??
  2. plowking35

    plowking35 2000 Club Member
    from SE CT
    Messages: 2,923

    I really dont know what rates are in my area. We bid all work with the intent of billing between 150-200 per hr for a truck with 8.5 v plow and spreader. My subs get 1/3 of that rate depending on the lot they are plowing, and what equip they are running.
    What other people are charging doesnt matter to me, they dont pay my bills I do. I know what it costs for me to do business, so I charge accordingly. That is how all of us should bid, and charge, based on your own over head and operating costs. Not by what the guy or gal down the street charges.
  3. Plow Meister

    Plow Meister PlowSite.com Addict
    Messages: 1,174


    I am in northwest Indiana. I will accept no less than $125.00 per hour. In 1/2 hour increments. Mostly I bid by the job. If a lot with 4-6" will take me 2 hours, I charge that much. Obviousely, if there are only 2" on the ground, it will take less time to plow so I make more money. Plus, I have a '6" to 9" rate" and a blizzard clause for snowfalls of over 9". See if Ceman (sp) is around. He is in Gas City. His rates may be closer to yours.
  4. Highpoint

    Highpoint Senior Member
    Messages: 241

    Columbia Missouri. 50.00 to 80.00 per hr for a truck w/7.5 blade. We are using 9 to 10 blades and getting 80.00 all day. Some will pay 100.00. We pay our subs 50 to 60 per hr. They must have at least a 8 ft blade.

    Bare in mind, we average only 5 events per season. Usually only a total snowfall of 10 inches. Ice events account for maybe 2 of the 5.
  5. kipcom

    kipcom Senior Member
    from Indiana
    Messages: 455

    PLease dont take this post the wrong way..... I am just curious if rates are going low in different areas or it is just a fluke in the indy area. Some of our bids have had LARGE bullet holes in them due to someone lowballing. I have a good idea who it is, but was just curious if it was just here locally. Our rates are very competetive and our subs get paid the BEST rate possible based on their experience. Thanks for all the input so far.
  6. edshipp19

    edshipp19 Senior Member
    Messages: 147

    I try to price jobs around the same rate as PlowKing
  7. zipp5

    zipp5 Junior Member
    Messages: 15

    I don't know if the same company is in Indy, but a good friend lost 3 contracts that he has had for the last 6 years to B*****an. They are trying to keep their employee's working all year. So they under bid him by $ 75ph:angry: on each job he lost. He tells me that the same company is trying to lowball all competition around the Baltimore and Washington area. Another guy lost a contract, M********* Spice Co., to the same company. He had that contract for 25 years!!

    This co. is nationwide?? And plans to add snowplowing crews to all states with snow. Certainly with their lowballing they can't last long....... or can they??????
  8. SCL

    SCL Senior Member
    Messages: 265

    I don't know how the economy is in Indy, but what I find around here is that when the econ. slws down(like it is now) evryone with 4wd and a piece of crap plow will low ball the hell out of you. Just do as PK says and stick to what you know you need. Some customers always price shop, but preach quality and reliability. Most around here are $55=70 an hour.
  9. kipcom

    kipcom Senior Member
    from Indiana
    Messages: 455

    ZIPP..... I think you are correct on the B***man thing. I have contracts going away and telling me that they have bids for>> GET THIS ..... $17 ph...... Ya no kidding. Hand labor as low as $7 ph They and some others are doing the same in the lawncare Biz aswell. BUT all these customers ask me the same thing ... Will they show up on time ??? what kind of service will I get ?? I reply, you know what you get from us.....GREAT ontime SERVICE :waving: Bottom line.... they cant make any money, they have too much "overhead" to cover..WE dont :D
  10. bob1

    bob1 Junior Member
    from 22
    Messages: 2

    AS far as pay for subs goes. $60-75 is fair. Look at it this way, if you are charging a customer $120+ per hour and you sub is doing all the plowing you are still making $60 an hour while your sub is the one tearing his equipment up. That is good money for doing nothing but administrative work. In my opinion.