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Seasonal driveway contracts

Discussion in 'Commercial Snow Removal' started by OhioPlower, Nov 25, 2008.

  1. OhioPlower

    OhioPlower Senior Member
    Messages: 440

    How can some people make money when they charge $180-200 for the season? We've had 2-3 pushes already and another coming tonight. I charge per push. Im about to lose some driveways to these cheap asses. Is there a limit of how many pushes in that $200 like 10 pushes and anything over 10 pushes is more? Cause if not I dont see how they can do it. I thought those guys woulda learned their lesson last winter when we had 15-20 pushes.
  2. JDiepstra

    JDiepstra PlowSite.com Addict
    Messages: 1,780

    For some people it is about how many, not how much.
  3. ColliganLands

    ColliganLands PlowSite.com Addict
    Messages: 1,854

    exactly some people dont care if they charge 5 bucks. makes no sense to me but hey to each theyre own i guess
  4. Harleychvy

    Harleychvy Senior Member
    Messages: 149

    How do you pay for gas and maintenance at prices that cheap. My cheapest is $25 and most expensive is $80. Got 8 drives so far for the season, aiming toward a few more, theres some decent cash.
  5. ColliganLands

    ColliganLands PlowSite.com Addict
    Messages: 1,854

    im not syaing i do my cheapest is $35 but i do know of some around here that do charge 10 or 15 bucks. i odnt know how they can get by on that but if they want to do then thats theyre choice
  6. Harleychvy

    Harleychvy Senior Member
    Messages: 149

    I agree. When they charge so little and their truck breaks down, most likely they are done for the season. No money to fix the issue
  7. JDiepstra

    JDiepstra PlowSite.com Addict
    Messages: 1,780

    Look at it this way. Would you rather have 50 driveways all in one neighborhood for $20 each which equals $1000. That's what, 5 hours tops?

    Or would you rather drive all over the place and do 25 driveways for $30 each with equals $750? Length of time depends on how far between accounts but could easily go over 5 hours.
  8. OhioPlower

    OhioPlower Senior Member
    Messages: 440

    with the way things are going this winter the probably wont be getting 10 dollars a push
  9. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162


    look how Neige does it, a driveway a minute makes 10 bucks each sound good
  10. IMAGE

    IMAGE Sponsor
    Messages: 1,737

    Neige has very very efficient equipment. A tractor with a snow blower is damb quick on driveways, and a very good setup in a city environment. I want to add a tractor like that (or like Jon's new toolcat with blower :) ) next season. An efficient set up that could handle a 75-80 home route each storm. (more when you get in with HOA's and do 50 in just a couple blocks- in an hour payup )

    Can you tell I think Neige is The Man?

    What were we talking about... lowballers? yeah they suck, guess you gotta sell your service with your price too.

    Messages: 32

    Seasonals on the residentials is the way to go but not for you east coast guys. I dont care if you got 50 in one neighbor hood or not a transmission is a transmission. You guys got to bump them numbers up.
  12. Neige

    Neige Sponsor
    Messages: 2,195

    With a seasonal price the client knows ahead of time what its going to cost for the year. We are entering some tough economic times where people want to know what it will cost with no surprises. They look at a seasonal price of 300 and say ok we can afford that. If you go per push, it could go anywhere from 200 - 500+. That may be to big of a chance for some. I have been noticing people putting up more tempos this year, that is just as harmful as a low baller. For those of you who do not know what a tempo is I have attached a photo.
    Volume is very important for the price I charge. Here is a pic of a typical street I do. It may be hard to see but I have 20 drives on this stretch alone. Know your costs, charge accordingly, and stay within what the market will bear. How much more will it cost me to do those first two drives on the right, if they decide to take a contract. Thats right:drinkup:

    snow removal walmart 2008 00121.jpg

    snow removal walmart 2008 20003.jpg
  13. big acres

    big acres Senior Member
    Messages: 653

    Neige... I've never heard of the tempos in our market, though we do not see as much snow here. People are getting creative... hope not to run into any giant party tents on our commercial stuff, lol.

    Gues those tempos must run about $250-300 and pay for themselves in the first season of savings -an investment to some, I guess.
  14. lumps

    lumps Senior Member
    Messages: 365

    I love seasonal contracts because I can budget my money far better that way. No worrying about dry months. Also, I don't have to deal with people and trigger depths... there's no bickering over whether it was enough to plow, I just go out and do it, everyone's happy.
  15. IMAGE

    IMAGE Sponsor
    Messages: 1,737

    Hey Neige, how long do those take with the tractor/blower set up? About 1 minute? Do you also do sidewalks or shovel anything? Or is it driveway only?
  16. Neige

    Neige Sponsor
    Messages: 2,195

    Totally agree. All my resi contracts are prepay. So money is in the bank before I start the season.
    Around 50 an hour, and no sidewalks. Thanks Image for the nice compliment.
  17. Brant'sLawnCare

    Brant'sLawnCare PlowSite.com Addict
    Messages: 1,748

    I would think that some residents around here would have a problem with those tempos if they were in their neighbors driveway. They aren't exactly the most "expensive" looking things.

    I charge per push, because I think that is the most fair way to do it. If you charge seasonals, well, that's ok, but somebody gets hosed!! I guess it just all depends on how you want to run your business.
  18. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    Those tempos should be banned. Man are they an eyesore!! Not to mention, bad for business.
  19. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    how do you figure you get hosed with a seasonal? if you ask me it is a win win
  20. Gr8WhiteNorth

    Gr8WhiteNorth Senior Member
    Messages: 211

    You guys are talking $200-$300 per season? What does the customer get for that? Are you comparing apples to apples with these lowballers? I get signed contracts for $106+tax per month for 6 month minimum....even if they sign up a month late for the season. The terms of services are described item by item including snow depth, areas we clear, salting, timeline expectations, etc. This price typically includes a double driveway, shovelling front steps and walk. We go out to over 200 driveways every snowfall no matter the amount. Commercial properties are quoted either hourly or fixed monthly rates based on a 1" or 2" snowfall event. Hauling and salting are extra.

    How does this compare?