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RE-constructing NEW Snow forms, contracts, proposals

Discussion in 'Bidding & Estimating' started by Yard Keepers, Jul 14, 2008.

  1. Yard Keepers

    Yard Keepers Junior Member
    Messages: 3

    I wanted to get out there to see if people would share there contracts, proposals, etc......

    being gas will be about 4.50 here in Ohio come January we want to try and include some sort of surcharge within the contract. Hopefully within the next day or so I can post a copy of our current snow contracts and proposals, letters.
     
  2. T-MAN

    T-MAN PlowSite.com Addict
    Messages: 1,363

    I would love to see your ideas for fuel and salt surcharges.
    They will be added to my contracts as well come sept. It sucks to have to do it, but things are way to volatile right now.
     
  3. Yard Keepers

    Yard Keepers Junior Member
    Messages: 3

    Today we had a short meeting, tinkering with our pricing. We are looking at something along the lines of a 10% if gas prices pass 425 or 20% for gas pass 450. Same goes for salt, if we get our pricing at decent time before our contracts go out, we'll do the same. We expect a salt shortage again this year, so we are going to be getting a mix of sand. These are all in the beginning stages, so who knows. If you have a better idea, let us all know.
     
  4. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    I don't do salt, but I do use materials for landscape jobs.

    When I bid a job, it is based on the price of the materials when I go to my supplier and get a quote. I mark up the materials a percentage and give the customer a final quote.

    I know if you get a quote for concrete to be delivered, it is only good for 48 hours.

    If I was going to do salt, I would put it in my contract/bid like this.

    Labor to spread salt = $50 per hour.
    Material Cost = Market cost at time of purchase Plus handling fee. Minimum cost$60.00 Maximum cost $130.00.

    EXAMPLE
    I buy salt for $100 a ton. I spread a ton on your lot. I charge the Labor/equipment cost of $50 per hour. I charge $130 for the salt. (I mark my materials up 30%) Your cost is $180 for a ton of salt spread on your lot.

    I'm now out of salt and have to buy more. I pay $120 a ton. I spread a ton on your lot. I charge the Labor/equipment cost of $50 per hour. I charge $156 for the salt. Your cost is $206 for a ton of salt spread on your lot.

    In a world of fluctuating materials cost, this is the only way to bid a job. If the customer doesn't understand, then you can either eat it if it goes up, increase your base price, or let someone else have the customer.