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rates for 04-05 winter

Discussion in 'Commercial Snow Removal' started by nor'easter1, May 23, 2004.

  1. nor'easter1

    nor'easter1 Senior Member
    Messages: 138

    The guys out there that do large commercial lots, what is your thinking on prices this year. The price on a pick up or bobcat or loader for the large lots that are done on an hourly rate. How much will you go up on fuel costs alone. Also were is the best place to get bags of calcium I only deal with lesco. Thank you
  2. PLOWMAN45

    PLOWMAN45 2000 Club Member
    Messages: 2,815

    i would want to see what the winter outlook will be for 04/05
  3. 66Construction

    66Construction Senior Member
    Messages: 315

    The outlook for the winter haha lol I needed a good laugh today.....they cant predict tomorrows weather or a snow storm a week in advance.
  4. kl0an

    kl0an Senior Member
    Messages: 215

    Hey, we had snow in Alaska here today.. OK, it was in Barrow which is 800 miles North of me but, hey, you can always hope..
  5. they always say each winter will be cold and snowy. And each year they seem to be wrong again. With a few exceptions with the few storms and few cold weeks we do have. I think that the weather people get the winter forecast out of the Farmer's Almanac.
  6. Snowman57

    Snowman57 Junior Member
    from Mi.:)
    Messages: 2

    Maybe we will get lucky this year and get buried in snow!How about this-Blizzard conditions,2"per hour for 6 hours,24 hour break in the snow then 3"hour for 6 hours.
    Hmmmm 30"snow,yup I could deal with that.LOL
  7. MickiRig1

    MickiRig1 PlowSite Veteran
    Messages: 3,617

    The above for once a week for 3 months of winter pleaseee!
    Theen I could replace "The Big Red Drain" with a " Big Red PowerStroke" HeeHeeHee
  8. plowman777

    plowman777 Senior Member
    Messages: 227

    doubling all prices!!
  9. North Country

    North Country Senior Member
    Messages: 141

    I am toying with the idea of a fuel surcharge each billing if prices hit a pre-determined mark or higher, just like vendors and distributors do.

    Of course it would be based on the equipment that is on a specific site.- michael
  10. flykelley

    flykelley 2000 Club Member
    Messages: 2,124

    North Country

    I was thinking of the same thing. I know alot of industry's that have a fuel surcharge when gas gets high. Anyone else do this or thinking about it.

    Regards Mike
  11. karl klein

    karl klein Senior Member
    Messages: 557

    we had a couple large storms last year that really hurt the little guys who were not prepared. hopefully that will help my company and let us raise our prices 10-15%. i also well put a heavy equipment hourly charge into all of my contracts, even the small jobs. i no last year winter when we got pounded for two weeks straight you will run out of places to put the snow in a hury.
  12. I don't really see a point of having a fuel surcharge, it's just too small of a cost for us to bother with. Fuel should only account for about 2-3% of your sales total. So if fuel prices jump up (as they always do) how much will they affect your bottom line. Very little.

    I can understand vendors & distributors adding a surcharge due to the fact that they are running much smaller margins then we should be in the snow & ice business. Fuel accounts for a much higher % of there costs.

    Now, on a yearly basis fuel costs are always rising, as are all of our costs therefore we must be taking this increased cost of doing business into consideration when determining prices for the next year.

  13. North Country

    North Country Senior Member
    Messages: 141

    Matt - Why make less money if you don't have to. Fuel is a commodity and commodity prices fluctuate. Therefore you have to pass the cost on to the customer and I believe that it should not change their bid.

    A customer should know that we are only trying to cover expenses not arbitrarily raising prices. I think a fuel surcharge would reflect positively on your company by showing that you are only taking the extra money when you need to.

    Every penny that you put to the bottom counts, by saying that fuel is only a small percentage that means that you would let any cost under 5% slide, that is going to add up. For example let’s say that you have 15 trucks on the road @ $40 in fuel each per storm @ 15 events that equals $9,000 in fuel just for plow trucks, a 20% increase in fuel is $1,800. If that amount of money doesn’t matter to you than God bless and pass the ammunition. That doesn’t even take into account loaders that use 2 gallons of diesel per hour under load.

    New subject – how long did it take to get back with that trailer? Any trouble on the way home? Talk to you later - michael
  14. Michael - I made it back fine. I can't rember how long it took but the cummins got 13.5 mpg towing a 34foot 12k 5th wheel.
  15. North Country

    North Country Senior Member
    Messages: 141

    Matt - WOW! 13 Gallons to the mile. That is great. (LOL) It must have cost a fortune to drive back?

    I paid 1.859 for gas before I left MN and it was like 2.209 at home!

    I am still excited about that fisher joystick for the V plow, it may have made up my mind. Now if Blizzard could only have the same stick, they would be unstoppable.

    Is the bidding picking up any? We actually just got a call and are doing a little bidding this week. - michael
  16. 66Construction

    66Construction Senior Member
    Messages: 315

    Run Diesels and run offroad fuel. It'll save a lot not paying the road tax. Even trucks we have dedicated to a site we run offroad fuell. I wouldn't recomend it in anything traveling site to site, that die tends to hang around even after you run road fuel, but any dedicated trucks and all our equiopment runs offroad, I wastch a lot of guys run to the truck stop in a storm to get fuel for machinery and it's throwing away money.