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Sanding cost?

Discussion in 'Ice Management' started by landscaper3, Nov 29, 2001.

  1. landscaper3

    landscaper3 Senior Member
    Messages: 309

    We run a pair of V-Box sanders and do quite a bit of sanding, We go through around 50yrds of sand/salt mix a season. We do all these sandings at condominuims and warehouses. We add it into the seasonal contract. We have been asked by a local big truck dealer for sanding services only! (when needed) Our sand/salt mix is $35.00 for 2 yrds and salt only at $100 for 2 yrds. This property will take one full hopper of about 2.25yards. Its entrance driveway from main road is 350 feet with 100 by 150 parking lot and another 100 by 150 lot on each end of the backside of the driveway. What would you charge for this property? I was thinking around $185.00 per visit which would net around $140 profit after fuel and sand. Is this too low? We may be maintaining this large property this next summer and dont want to over bid it and loose the possibilty of summer maintenabce.
     
    Last edited: Nov 29, 2001
  2. G.Williams

    G.Williams Member
    Messages: 40

    For the same size property we would charge $280.00 +/-. We sell even our salt mix at bag prices (retail 3.25/80 lb bag) Now figure at 60 bags for a complete job there @ $3.25= $195.00. That gets billed as material costs, then the labor is flat rate for spreading 1 hopper full on the property. that would be billed out at $85.00 for applying the material. We get this all day long, due to the fact that they do not have the capability to spread it, nor do they want to stock the material, plus the fact that you are up at 3:00 am to apply it and all the prep time and amount of money you have laid out for material and equipment costs? Plus you have to wait 30 days to get paid for the job? I'm thinking $280.00 isn't enough. I take it that they will call you when they want this service done as well, not be on an automatic schedule, so that way you have to run in there when they call real quick just to make $180.00? Also you did leave out overhead recovery and payroll so your profit would not be $140.00 as you may think. Take into account all other factors. Though a lot depends on what the market will bear, how quickly you can service the account, etc. If there is more than around the corner travel on this it would be more. Depends upon competition as well, if you want to get your foot in the door on the account I would not go super cheap on the price, they may expect everything else super cheap as well. Just my .02.

    Gregg
     
    Last edited: Nov 29, 2001
  3. landscaper3

    landscaper3 Senior Member
    Messages: 309

    We have no real overhead. And it will cost us $35 in material around $5.00 in diesel fuel and around .50cents in sander fuel. Take 1hr time from shop to shop and I would be doing this service myself instead of one of our employees. We dont buy bags of sand or salt we have a company that sells us 50yrds of sand/salt mixed and loads it in our hoppers with bucket loader. They will call me when they need this service and will not be at bad hours but will need to be done at storms end and they relize I wont be there for a while. If I charge $200, our material and fuel would run $42.00 and pay myself 1hr wage at $45.00 thats would give my company around $110 or so profit for 1HR work. The one bonus of this account is we already told them it will be done at our times not theres and they were fine with that.
     
    Last edited: Nov 29, 2001
  4. Mick

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

    landscaper3 - I've got the same type of deal - sanding only of a shopping mall and it's on a basis of "we'll call you when we want sanding". We're in different type markets and I really don't have an answer. But what I have been wondering is what is the liability involved in such an arrangement where I'm not providing plowing. I realize that "anybody can sue anybody at any time for any reason" but could they realistically make the claim that you didn't sand sufficiently to prevent the slip and fall? Also, I'm wondering if they could try to get off the liability hook even though they plowed because your sanding came after the plowing?
     
  5. G.Williams

    G.Williams Member
    Messages: 40

    If you service the property for plowing or sanding, you're liable either way. Both contractors will receive the lawsuit and the court will decide who is liable (if it gets that far). We get the dand in bulk as well and mix with rock salt but we sell in 50/lb increments (i.e. bags) on the invoice. Our markets may be different and we are definitely not on the low end of the scale on price, but I just gave you my honest response to you question. Our pricing scheme has worked very well in the past and we keep growing double digits every year.
     
  6. landscaper3

    landscaper3 Senior Member
    Messages: 309

    We got lucky and had a lawyer in our family, So he tweaked our contracts that wave all winter accidents due to snow or ice for its nature made not man made. He said its not 100% affective from being sued but is and was the right step to take. We due everthing with contracts and we go over all aspects of work and wavor of liability, We make them sign along with a witness. Like I said its not 100% free of a law suit but with these types of contract it makes it 100% harder for a law suite!
     
  7. landscaper3

    landscaper3 Senior Member
    Messages: 309

    wow only a couple of people sand according to the replies! For you that did reply thanks and seems my price is the ballpark around our location.