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Seasonal contract pricing question

Discussion in 'Bidding & Estimating' started by lumps, Oct 8, 2008.

  1. lumps

    lumps Senior Member
    Messages: 365

    I know I've been asking a lot of questions recently, but I'm in the middle of a lot of bids. I really appreciate all the help I've received on here.

    I have a commercial lot that wants a seasonal price. I have my base rate figured out for the job. My question is what I multiply by my average number of plowable events to get the seasonal rate. In the past, it's always been resi, so there was no difference. But now, do I use my base rate, my 4-8" rate, 8-12", or what?
     
  2. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    what i personally do , is find the average number of storms, for each level , then charge based on that
     
  3. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Seasonal is a little different .You bid it on how many plows you think you will plow for the season.As for me how many inches is no concern for me. EX. if you figured 100 per plow then you multiply that by how many times you think you will plow it.

    100x 25= 2500 for the season regardless how much snow fell in the season.
     
  4. Mick

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

    For seasonal rates, you really need historical data. Without it, you're just "shooting in the dark". What you might try is taking the average annual snowfall for your area, divide that by the "trigger" depth, then divide that by two and multiply that by the "per plow" rate for any given site. I just tried it for a couple seasonals I have and it was close (each have different triggers). Off about 10% in each case - one was over and one was under; each by 10%.
     
  5. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Mick if that was the case here,we avg 100 inches a year so that means I would of gone out 50 times last year. But I only plowed 20 times and cruised around a few times when I went for coffee just to see how things are.
     
  6. Mick

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

    I think you missed one step: 100/trigger depth; then divide by 2 and multiply by Per Plow rate.

    100 / 3 = 33; 33 / 2 = 16.5; 16.5 * $50 = $825

    Nothing to do with how many times you went out.
     
  7. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    If I read you right your saying 17 times out plowing I base mine on 25 for a little padding.
     
  8. cet

    cet PlowSite Fanatic
    Messages: 7,202

    Why are you dividing by 2, I am a little lost with that.

    GV if your trigger is 2" then you would have been at 25 with that formula.
     
  9. Mick

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

    What's your trigger? My example was with 3". With 100" of snow, yours sounds like maybe 2".

    100 / 2 = 50 ; 50 / 2 = 25; 25 * $50 = $1250

    Sound like a good seasonal rate for a $50 per plow site and a 2" trigger?
     
  10. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    OK ,I see I base mine on 2 inch triggers.
     
  11. Mick

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

     
  12. Mick

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

    Really, this was intended for lumps - just to get him started without any historical data to go by.
     
  13. cet

    cet PlowSite Fanatic
    Messages: 7,202

    That looks like a good formula Mick.

    I base mine on 25 plows. We usually get 5-6 plows under 2" and 3 plows over 6". Last year none of the formula's worked out. We has one 18" snowfall, two 12" snowfalls and one 9" snowfall. We did get a ton of loader work though.
     
  14. Mick

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

     
  15. big acres

    big acres Senior Member
    Messages: 653

     
  16. lumps

    lumps Senior Member
    Messages: 365

    Interesting formula, I'll try it out, seems like it'll work well, thanks!
     
  17. Mick

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

     
  18. redman6565

    redman6565 PlowSite.com Addict
    Messages: 1,411

    i always use 22 full trips and 18 partials or clean up runs to calculate my seasonal pricing.
     
  19. snyps

    snyps Senior Member
    Messages: 101

    I have a dart board with diffrent numbers on it.. I just cover my eyes and start throughing!!

    :jester:

    I find it interesting that here in Buffalo we are almost all seasonal and people I know other places are not..
     
  20. redman6565

    redman6565 PlowSite.com Addict
    Messages: 1,411

    that always works too haha