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Residential Pricing.

Discussion in 'Business Fundamentals' started by DodgePlow, Nov 6, 2003.

  1. DodgePlow

    DodgePlow Member
    Messages: 44

    Just wondering how you guys price your residential accounts.
    Do you increment the same way as tyour commercial accounts; like 2-4, 5-7. 8-10. Or do you do it diiferent for residential?

    Thank You
     
  2. Snoworks

    Snoworks Senior Member
    Messages: 466

    In my neck of the woods, we charge residential in the following manor.

    1-5.99" = Set price $40.00
    6"-12" = Set price x 2 =$40.00

    Our snowfall totals for the year avr. around 40 to 48", so we don't have many storms over 8".

    For contractors in high snowfall areas, I believe they break it down into smaller increments. Just like you listed.

    Chuck B.

    PS. - Welcome to plowsite.
     
  3. dmontgomery

    dmontgomery PlowSite.com Addict
    Messages: 1,238

    I am working on pricing myself. So is that to say if you get 8" it will be $80??

    And is that for 1 push.......what if you go to the same place twice for 8"......is it then $160....

    Thanks for the help........

    Derek
     
  4. Snoworks

    Snoworks Senior Member
    Messages: 466

    Yes, using my pricing structure, you would charge $160.00 if you plowed twice at 8".

    Chuck B.
     
  5. Snoworks

    Snoworks Senior Member
    Messages: 466

    Well, let me correct myself! If you get a total of 8" of snow, and you plow twice - lets say 4" and 4" - the cost will be $80. If you plow the driveway twice - lets say 6" and 2" - the cost will be $120.00. If you plow the driveway twice - lets say 8" and 8" - the cost will be $160.00.

    Chuck B.
     
  6. kg26

    kg26 Senior Member
    Messages: 300

    This part of the business can be trouble some for folks here is how we have done it in the past. We are a smaller company so we can afford to wait for the storms to pass sometimes. What we will do is read the weather report see how many inches we are getting. When we get to the Job site for the first few storms of the year we take a reading and bill for that amount. We do have price points such as small drive way single car could be $35 for 2-4''
    5-6'' is double the rate, +7'' $ x 2.5
     
  7. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    So because you wait your customers have to pay more for plowing?
     
  8. Dogplow Dodge

    Dogplow Dodge 2000 Club Member
    from NJ
    Messages: 2,995

    Well, wouldn't that be the same as just charging for multiple visits ?

    I had to go back to a customer that wanted it plowed @ 4" last year. I went there, cleared the drive, then left. The snow continued to fall, and I went back and did a second pass. It was at about 6" each pass. I just charged them the same rate for each visit, as it's no big difference, time wise, to either do 4" or 6". They paid without question. Sometimes they benefit, other times I do, based upon mother nature..


    10 year old thread, eh ? We must be bored......;)
     
  9. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Not based on what he posted. It would cost the customer less if he came back twice then one time and billed two and a half times
     
  10. kg26

    kg26 Senior Member
    Messages: 300

    Not really if you plow with the storm on an 8" storm you may hit the same house 2x maybe even 3x, and bill for each visit. you still moved 8" of snow and were compensated accordingly. It's really no different instead of plowing with the storm because at the time we were a smaller company we waited until the storm had passed. We still moved the same amount of snow... We don't have plows at the time we didn't even have snow blowers. So why should we not be compensated for moving the same amount of snow as other LCO's?
     
  11. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    If you plow 2 times it will them 70 bucks,You wait till it stops snowing and plow once,it costs them87.50. Based on what you posted on pricing either you charge them a flat fee each time or total inches
     
  12. trevier

    trevier Senior Member
    Messages: 142

    my area in NH goes like this,
    1-9= 30
    9-14= 1 1/2 times
    14-20= double
    20 and over= 2 1/2 times
     
  13. jrs.landscaping

    jrs.landscaping Senior Member
    from Maine
    Messages: 637

    $75 to plow 20+ inches of snow?
     
  14. BC Handyman

    BC Handyman PlowSite.com Addict
    Messages: 1,863

    here, me, per visit(as I may have told u already dog) i do it
    0.1-5.99" $x
    6"-12" $x
    over 12" $x
    they have choice of 1 or 2 visits per 24hrs & each property is evaluated & priced for that property.
     
  15. MajorDave

    MajorDave Senior Member
    Messages: 947

    10 year old thread, eh ? We must be bored......;)[/QUOTE]

    Hey Dog - look at your Post count on each entry!!

    Well, you know, here in NY/NJ/LI we get more $ for those pushes, but we are usually paying more in everything else. You can get a driveway for $75-100 for 6 " depending on where you are…Short Hills - Huntington - Great Neck verses Hempstead or Newark.

    I go by your method for residential. Most want it when its done, so I price out for total inches. Commercial is about the trigger cause they are doing business as it snows…3" fall = push it….3" falls = push it.
     
  16. kg26

    kg26 Senior Member
    Messages: 300

    I understand what it is that I am saying, my clients have no problems with it. I don't understand why you are not seeing what it is that I am saying. I'll try it again. Just like you on a 2-4"storm it is one pass. So let's say if your price for a 50' driveway one car wide was $10
    For that storm you Grandview landscaping would charge for what? One pass correct? Grossing you $10.00 Well so would we. Here is were the difference is. 8"storm you visit the house what 3-4 times? So at 3 passes you would bill what? $30.00 if in fact you only had to go back 3times.

    My company had price points based on inch accumulation. Why? Because we were not making passage. we removed snow after the storm had passed. Still moved the same amount of snow, still made about the same amount of money. $10, 2-4" $20, 5-7" $30, 8-9" 10"+ hourly rate. (Figures used in this post are for example purposes only)
     
    Last edited: Dec 21, 2013
  17. kg26

    kg26 Senior Member
    Messages: 300

    Hey Dog - look at your Post count on each entry!!

    Well, you know, here in NY/NJ/LI we get more $ for those pushes, but we are usually paying more in everything else. You can get a driveway for $75-100 for 6 " depending on where you are…Short Hills - Huntington - Great Neck verses Hempstead or Newark.

    I go by your method for residential. Most want it when its done, so I price out for total inches. Commercial is about the trigger cause they are doing business as it snows…3" fall = push it….3" falls = push it.[/QUOTE]

    Right because they want it done once and you need to make your margins. Well the more snow is there the more fuel it will take you to clear the snow.
     
  18. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Good for you if your customers don't mine having snow in their driveway 12-24 hours after it snow.
     
  19. MajorDave

    MajorDave Senior Member
    Messages: 947

    Actually most of my residentials are cool with that, but it has never been 12, let alone 24 hours for me. I just try to do what they want me to do and I try to exceed their expectations…customer service goes a long way. Bottom line is we all may do things a bit differently, but in the end the snow is pushed and the customer is not stuck (hopefully!) --- if they are happy and you are - all is good.
     
  20. kg26

    kg26 Senior Member
    Messages: 300

    Could not of said it better.