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Seasonal pricing check

Discussion in 'Bidding & Estimating' started by abbe, Oct 15, 2014.

  1. abbe

    abbe Senior Member
    from RI
    Messages: 719

    I have had minimal experience with seasonal contracts. My work had always been billed out per event. I have a chance to put a seasonal proposal together for a 150k sqf shopping location. Sidewalks are included as is straight salt. No removal or hauling, as that is charged out seperate. It's a simple site for a truck and skid steer.

    We average 40" or so of accumulation each year here. Last year I treated my lots between 20-25 times.

    I have an idea on my seasonal price but just wanted to see if I'm in the right ballpark or not.


    Thoughts?
     
  2. gc3

    gc3 Senior Member
    Messages: 713

    How about a picture also
     
  3. MSsnowplowing

    MSsnowplowing Senior Member
    Messages: 709

    you already know how to bill out per storm.

    Figure this out as per storm, then take your starting price for the first 2 inches and times that by 20.

    snowfall per year divided by trigger gives you your base number.

    base number times trigger amount

    lets say a 2inch storm is $1,000 to push, do sidewalks and salt

    $1,000 x 20 = $20,000

    Seasonal is a risk for us in the short term, long term it pays out.

    I wouldn't touch this without at least a 2 year contract.

    4 years would be much better with price increases built in to cover increase in your costs, higher gas, higher product, etc...
     
  4. gc3

    gc3 Senior Member
    Messages: 713

    Hey MS, if you did a 2 or 4 year contract with yearly increases built in, how much % increases would they be personally for you?
     
  5. MSsnowplowing

    MSsnowplowing Senior Member
    Messages: 709

    would depend on the site. fuel prices, product, labor, Ranging from 5 to 20
    %
     
  6. abbe

    abbe Senior Member
    from RI
    Messages: 719


    Thanks for the help MS. That formula is pretty spot on. I was shooting in the 18-20k ballpark. Glad I am not in left field. Ill hang onto that bit of knowledge. Thanks
     
  7. MSsnowplowing

    MSsnowplowing Senior Member
    Messages: 709

    Np and one more thing, always add some extra if it's a pita