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Seasonal Contracts

Discussion in 'Commercial Snow Removal' started by Flawless440, Jan 28, 2014.

  1. Flawless440

    Flawless440 PlowSite.com Addict
    Messages: 1,543

    I'm just curious how everyones seasonals are going?
    Just screwed or are mangers dipping into their pockets?

    My biggest accounts (per Push) just told us they are out of money.
    They have been having us do all the walks.. 6 man crews and a pallet of walk salt per event per property.. Dam maintenance guys need to do their own walks.
     
  2. JimMarshall

    JimMarshall Senior Member
    from NW PA
    Messages: 785

    Why would managers be dipping into their pockets on a seasonal?
     
  3. Flawless440

    Flawless440 PlowSite.com Addict
    Messages: 1,543

    IDK... I think some contracts have a cap on them there for I would think the cap has been reached??
    Properties going to have to go into there pockets..
     
  4. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,953

    Seasonal contracts should be for more than one season, all averages out if you know your numbers
     
  5. birddseedd

    birddseedd PlowSite Veteran
    Messages: 3,516

    My seasonal contracts have event limits, then its per push after that.
     
  6. Antlerart06

    Antlerart06 PlowSite Veteran
    Messages: 3,437

    My one seasonal Contact for the month profit is 2k
    I broke my Contact up So I could see if I profit during each month
     
  7. jrs.landscaping

    jrs.landscaping Senior Member
    from Maine
    Messages: 639

    How is that a seasonal contract?

    Do you refund them if you are under your per push numbers?
     
  8. snowbelt5

    snowbelt5 Member
    Messages: 51

    I do mainly all residentials and I don't know how anybody would charge seasonal. In 2011 I plowed 5 times. In 2012, I plowed 8 times, so far this year I have plowed 20 times. The most I have ever plowed in one season is in 2009 with 17 plows. So basically if I take an average throughout the years I would say around 12 plows is average. So if I did a seasonal contract for 12 plows, that would mean this year I would have don't the last 8 plows for free, on top of the two more months of winter we have left.
     
  9. truckitup

    truckitup Senior Member
    Messages: 257

    I have won the last two years, This year will be a loss.
     
  10. snowbelt5

    snowbelt5 Member
    Messages: 51

    I think it is fair for everyone. I get paid for what I do. The customers pays for what is done.
     
  11. birddseedd

    birddseedd PlowSite Veteran
    Messages: 3,516

    No refund. But it is designed for record seasons. I don't mind getting paid lower power push when I get the stability of monthly payments. But at the same time. I don't want to end up only getting 50 per push on a 150 dollar lot
     
  12. kg26

    kg26 Senior Member
    Messages: 300

    How are you working out your pricing? I plan on plowing this many times x plowing rate = seasonal contract bill, pay upfront?
     
  13. JimMarshall

    JimMarshall Senior Member
    from NW PA
    Messages: 785

    The couple I have is average snows X price per push + average salts + price per salt with a little extra thrown on. We would have to have a LOT of snow before they cost me money. I might not profit, but I wont lose money. Only have 4 of my properties that are seasonal. 3 of them have the option of all up front, or broken into 5 payments. Payments due the first of Nov, Dec, Jan, Feb, and March. If your payment isn't in, no service. One of them is yearlong seasonal. We mow, etc and do snow removal for the same monthly price for 12 months
     
  14. birddseedd

    birddseedd PlowSite Veteran
    Messages: 3,516

    One of them that I do is a $100 lot. They are on a $400 monthly payment. Their limit to be covered under their monthly payment is 24 plows. If I plow exactly 24 times their power plow actual cost is at a discount. But if we get hammered to the point that I am doing 35 plows in the season it projects me from working for free.
     
  15. JimMarshall

    JimMarshall Senior Member
    from NW PA
    Messages: 785

    How many months?
     
  16. birddseedd

    birddseedd PlowSite Veteran
    Messages: 3,516

    I don't like the idea of chance of not making money I'm too close to that line already.

    It may be as little different here in Michigan because our weather is so variable.

    Last year we got 6 events this year we are around 20.

    The same customer I mentioned above I'm not worried about that one because if missing events change its only by a couple events not enough to effect my overall profit.
     
  17. JimMarshall

    JimMarshall Senior Member
    from NW PA
    Messages: 785

    Oh yeah, the weather here doesn't vary at all:rolleyes:
     
  18. Flawless440

    Flawless440 PlowSite.com Addict
    Messages: 1,543

    Good info guys....

    Trying to figure out a program for these properties next season.
    I have no experience when it comes to seasonals..
     
  19. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Been out at least 25 times this season. Still make money on the seasonal though. Only difference is I'm spend gas money on plowing instead of driving around all day drinking coffee. More snow we get the faster I'm getting done. Lots get smaller so it's faster to plow them and go home.
     
  20. beanz27

    beanz27 Senior Member
    Messages: 984

    Quote of the day