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Seasonal Contract Question

Discussion in 'Bidding & Estimating' started by Burkartsplow, Nov 6, 2007.

  1. Burkartsplow

    Burkartsplow PlowSite Veteran
    Messages: 3,245

    I live in cleveland we get an average of 55 inches of snow a year. I am bidding on a mid size apt. complex that I am going to charge them $375 per push with a 2 inch trigger. They also want a seasonal bid also. What is a good number to use to multipy by my per push amount to get a good number to present to them. I jsut dont want to get screwed having to go there more times then I quoted and not make the percentage that I want to from this account. I was thinking 25. is that to high to should I go higher or lower?
     
  2. Mick

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

    Well, you really need records to come up with a good calculation, but given a 2" trigger and average of 55" - I'd say taking the $375 times ten or eleven should give you a good figure. It would really depend on the level of service you will be expected to perform. If you're expected to start plowing whenever it hits 2"; that's different than, say, starting at 5-6" with a cleanup.

    For comparison, I give a seasonal based on 75" annual average with a 3" tigger and only one push per snowfall. I use "12" times the per push amount.
     
  3. Burkartsplow

    Burkartsplow PlowSite Veteran
    Messages: 3,245

    I know that I would have to start plowing at 2 inches. They want the place to be safe and I would have to come back if i plowed it in the early morning and it kept snowing another two inches after that. so do you think 25 is to high of a number to multipy it by.
     
  4. Snowpower

    Snowpower Senior Member
    Messages: 636

    I usually use 12 to 14 average. I wouldnt put too much time into the seasonal bid. Theyll never take it. As far as I'm concerned seasonal pricing is on its way out.

    Thats what I'm seeing.
     
  5. Mick

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

    Yeah, I think for a 55" annual snowfall, 25 is too high. That's saying you'll plow every two inches - not going to happen and there'd be no reason for a seasonal contract. Use maybe half that at most, as an incentive for them, if you're sure they're wanting that level of service. Then make sure to follow through to show them it was worth it to them.
     
  6. Ole Tower

    Ole Tower Senior Member
    from MAINE
    Messages: 210

    Seasonal Contract?

    All Seasonal Contracts are RISKY--too RISKY for ME! I Go by PUSH--as lots of Storms w/ Lots of SNOW will Kill any Real Profit its been my observation over many yrs Guys that Plow by Seasonal Contracts locally in the Past have had Their $$ problems! as their Customers ***** if? they Don*t get a lot of Snow in that Area?--as I assume? they Feel Cheated? Here locally the only Seasonal Contracts I know`of? is Powing the Towns`Roads I read on this Site about Seasonal Contracts --but--I Dono? any One locally that Plows by the Season? SORRY I*M not much HELP?--OleTower--
     
  7. Snowpower

    Snowpower Senior Member
    Messages: 636


    I dont either. I dont know anyone that really has a seasonal contract, but on here it seems everyone "claims" to have them. Now I know they exist, but I think they are pretty rare anymore.
     
  8. MIDTOWNPC

    MIDTOWNPC PlowSite Veteran
    Messages: 4,452

    I am finding this year lots of them are asking for a seasonal price. Even some that ask for salt/sand included cause they want it layed every time. I think its becasue they know money is starting to get tight and they want a 4 equaly payment plan

    I have 3 so far that were per push and per app of salt that are now all you can eat plowing and salt.

    I did 22 events. Thats what I actually plowed last year and I figure there is enough room on the salt salt to cover my butt plus I have some per push's and an overall balance I take that bet. Its beautifull feeling that I am going to be getting 3 cheques on the 15th of each month for 4 months. I did the 15th cause no one has money at the end of the month and I dont want to be last in line.
     
  9. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,046

    Everything I have is seasoal and I love it. I sell it as an insurance policy, do you get mad when you don't use your insurance. Big companies love seasonal contracts because it's great for bugeting. Most of my seasonals even include salt. If they want an all in price, it's better to get a 3 year deal and then the law of averages is with you. I think I would go with 14 to 17 for my multiple for 55". It's harder for me to tell you because my lots are zero tolerance but I get around the same amount of snow as you.
     
  10. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I use all seasonal also except for one place.I bid everything at 25 plows and bill out 5 equal payments. The per plow usually equals what the seasonal price would be they just take the chance.
     
  11. heather lawn spray

    heather lawn spray PlowSite.com Addict
    Messages: 1,206

    Ditto

    What he just said, couldn't have written it better myselfpayup
     
  12. Burkartsplow

    Burkartsplow PlowSite Veteran
    Messages: 3,245

    That is what I did on this bid. I handed in the bid and gave them a per push and also a seasonal bid. If I was lucky they would take the seasonal. it is nice knowing that you have income coming in guaranteed throughout the season, plus if you bid it high enough and you do get that much snow, then you I am still happy because I would have been doing the work anyways and getting paid the same amount. I will hopefully hear back from them soon. I need to find one more commercial account and I should be set for the season. i am working on this restaurant that does not have anyone contracted yet. They seem to be dragging there heels. i am going to stop over there today and see what is going on. im out, i am going to go out adn take a look at my equipment and get it ready.