1. Welcome to PlowSite. Notice a fresh look and new features? It’s now easier to share photos and videos, find popular topics fast, and enjoy expanded user profiles. If you have any questions, click HELP at the top or bottom of any page, or send an email to help@plowsite.com. We welcome your feedback.

    Dismiss Notice

Salt Contract

Discussion in 'Ice Management' started by Theshoemaker, Mar 18, 2009.

  1. Theshoemaker

    Theshoemaker Senior Member
    Messages: 206

    Hello, i'm wandering how one might go by including the salting price into a plowing contract. I know that to come up with seasonal contract price you take your price to push x by how many events you think might happen but is this the same for salt?? I know this one lot i'm looking at would take 1 ton (heavy) every time it gets salted but do i times my price for salting by the same number for push-es???:dizzy: I'm kinda new to the salting so any help would be great.

  2. Ipushsnow

    Ipushsnow Senior Member
    Messages: 314

    Shoemaker, you will salt FAR more than you plow. Just think of all the little 1/2" dustings, freezing rain events, melt and re-freeze cycles, etc. My advice would be to talk to someone from your area and see what they say is the average. If you can't find anyone I would say, just throwing out a number... 150% of plowing events. So if you plan on plowing 20 times plan on salting 30.

    Another thing you might consider is not having all your contracts be seasonal. I do 70% per push and 30% seasonal. That way with a good winter I can make good money off the per push, but in a bad winter I got money coming in from the seasonals.

    As far as pricing for salt, there are a lot of ways. Cost x3 is pretty standard, but with salt so high right now customers are starting to lose their minds. Plus, if salt ever goes back down to $35-40 bucks a ton you are losing out on a lot of money. I do it a little different: profit+cost. Decide what you want to make per ton, and just add the cost of salt to that. So if you want to make $200 per ton and you are paying $70 per ton then charge your customers $270 per ton. Remember you are not really making $200 per ton though because of all the other costs involved in running a salting operation.

    Good luck!