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Retaining Fees

Discussion in 'Commercial Snow Removal' started by Plow Dude, Oct 3, 2005.

  1. Plow Dude

    Plow Dude Senior Member
    Messages: 281

    I am about to start billing my lawn customers for snow removal and I was wondering what the best way to do this is. The past few years I charged a flat $250 for straight drives and $350 with straight & circular no matter how much it snowed. I based it on 10 snow falls for the season. I don't really want to go by the push, cause it may not snow a lot. Can you charge like $100 per month wheather it snows or not and that will cover them for 4 pushes and charge them for anything after 4 pushes per month. It seems like that will cover you wheather it snows or not.
     
  2. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    Sure, there are some that do that. Do what works for you.
     
  3. TRUE TURF LAWN

    TRUE TURF LAWN Senior Member
    Messages: 290

    i charge a $100.00 per month no matter if it snows or not, if they wanna they can pay the hole season in advance and i charge them $550.00. :redbounce
     
  4. greenpastureslc

    greenpastureslc Junior Member
    Messages: 26

    I dont think I would worry about how many pushes you do in a month.
    One month it may snow 6 or 7 times, the next nothing. See what I'm saying.
    If you start nickle and diming people you'll probably lose more business than you'll gain.

    Tim
     
  5. greenpastureslc

    greenpastureslc Junior Member
    Messages: 26

    The $100/month would still be more than you were making last year!
     
  6. Nathan281

    Nathan281 Junior Member
    from MN
    Messages: 14

    Where in MN are you located? what size drive way does this include and does it cover side walks?
     
  7. BJH Snow

    BJH Snow Senior Member
    Messages: 142

    I also go with the $100 per month and have no complaints from my customers. I think I'm going to bring my prices up this year because of the gas prices though.
     
  8. SnowGuy73

    SnowGuy73 PlowSite Fanatic
    Messages: 24,868

    Thats right around the same area that we are charging, you have to cover ALL your costs..
     
  9. stumper1620

    stumper1620 Senior Member
    Messages: 222

    How many months are you guys billing for?
    I like the Idea if it could be perfected as profitable. details please.
    My area don't see plowable snow in Nov. or April that often that people would pay for those months and sometimes March and Dec. have no plowable snowfalls.
    actually only 3 months would be billable.
    Problem in my area is too many nonbusiness plowers out there doing drives for 15 to 20 bucks a hit.
     
    Last edited: Oct 6, 2005
  10. SnowGuy73

    SnowGuy73 PlowSite Fanatic
    Messages: 24,868


    My billing goes from Nov. 1 - Mar. 31 (five months). We really dont get much snow in November either, but there is always that chance. Here in my area I have alot of "nonbusiness plowers " too, you just have to sell not only your services, but yourself to your potential customer.
     
  11. stumper1620

    stumper1620 Senior Member
    Messages: 222

    Well, you guys got me thinking.
    I may get this implimented for this season. I'm going to start changing my lawn care to monthly and so now is the time to switch it all.
    I'm thinking they want me to be there whenever it snows or the lawn needs mowing they can pay the same amount 12 mos flat rated.
     
  12. SnowGuy73

    SnowGuy73 PlowSite Fanatic
    Messages: 24,868

    Well how offten do you mow? We mow once a week weather it needs it or not about apr.15 or so til Oct31, sometimes later..
     
  13. stumper1620

    stumper1620 Senior Member
    Messages: 222

    weekly on most, some need every 4 to 5 days, I'm trying to get this all in perspective but I think If I base most as 28 weekly cuts, averaged over 8 mos. then figure a monthly plow rate averaged over 4 mos. then add all together divided by 12 monthly billings, then I will have my set income all year. not counting extra work I may sub into or new starts & one timers
     
  14. SnowGuy73

    SnowGuy73 PlowSite Fanatic
    Messages: 24,868

    Yup, thats how I do it..
     
  15. stumper1620

    stumper1620 Senior Member
    Messages: 222

    Thanks, I'm gonna get going on implementing this, I'm hoping to convert as many as possible before plowing starts.
    when you do yours do you average the fall clean up or leave it as an extra?
     
  16. SnowGuy73

    SnowGuy73 PlowSite Fanatic
    Messages: 24,868

    Yes I do..
     
  17. Nathan281

    Nathan281 Junior Member
    from MN
    Messages: 14

    Thanks for your help will be moving my price higher this year. Are you having problams with getting underbidded?

    What size drive ways are you doing and does this include the walk ways?
     
  18. LwnmwrMan22

    LwnmwrMan22 PlowSite Fanatic
    Messages: 28,001

    Minnesota guys must be the only guys that do this.

    However, I still know a couple of guys in Bloomington that are plowing for about $45 / hour.

    I've got all my contracts on flat fees, both summer and winter.

    Sure is nice to have a set budget for the whole year. Takes all the worry about it.

    Hopefully we get about 5000" of snow this year, those guys that plow for $45 / hour, they still owe me $2,000.

    Didn't help the lack of snow for November, December and January.

    Epic -

    Do you bill your lawn work in April then?? April thru October, for 7 months?
     
  19. Acmemechanic

    Acmemechanic Senior Member
    Messages: 137

    Flat FEE

    When I want to Gamble I go to a Casino.Pay me when it snows and I am happy.Hope for less snow never!!!!