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Seasonal Vs. Per plow rate

Discussion in 'Commercial Snow Removal' started by Chief Plow, Dec 17, 2002.

  1. Chief Plow

    Chief Plow Senior Member
    Messages: 201

    I have an oppurtunity to pick up 5 local banks, all about 10 miles apart. My question is, they want me to bid them all for the season. I usually plow all my commercials on a per plow basis. I am sure I can convert the numbers ( Per plow to seasonal based on prior years ) but my question is... Does any one here build in a markup, incase of a chance that you may plow more than in years passed. If so how much mark up? Like I said, I havenever done a seasonal, and I'm just looking for a little help. Thanks all.

    Rick
     
  2. Mick

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

    My suggestion is not to have any markup. Try for a multi-year contract and it'll even out. Otherwise, do such a good job, that they'll sign with you the following years and it'll still even out.

    I actually figure a markDOWN for a seasonal rate.
     
  3. Wilburn Parks

    Wilburn Parks PlowSite.com Veteran
    Messages: 64

    If my starting point is 1" of snow I try to bid the season at 12-14 times the per push rate.If my starting point is 2" then I bid it by 10-12 times the per push rate. I don't have it in my contract now but I will change it to read 1 push per snowfall. Any extra they will be charged for an extra push.Of course this is for my area your average snows per season may be different.
     
  4. plowking35

    plowking35 2000 Club Member
    from SE CT
    Messages: 2,923

    I have a mark up in case of the big years, if you dont get the snow you make extra money. My mark up is about 25% if the contract is below 10000.00, lowers to the 12 % area above 10000.00. While that mark up may seem outrageous to some, the level of service to seasonal contracts is so much higher than per push customers. The seasonal customers know this, and are willing to pay the premium price to get a truck that will just service their location during heavy snowfall. It is not uncommon for us to plow seasonals every 1/4" at some times.
    If we have a real light year( under 20" and 3 salt runs) we offer a discount for the following year. Keeps your foot in the door, and shows good faith to the customer.
    Dino
     
    Last edited: Dec 17, 2002
  5. TLS

    TLS PlowSite.com Addict
    Messages: 1,425

    Cheif Plow,

    Don't know your operation size, but I hope your not a solo operator?!

    That 10 miles between banks can sometimes take an hour in a big storm. With one truck, all banks are going to want to be FIRST!!! No way you could please all 5 at once when they're thay far apart.

    If your a multi-truck operation, please ignore the above.

    As for the seasonal vs. per push billing....All I know is seasonal in my area simply won't work. Some years we may get ONE (1) 3" snowfall per year, and others we'll get SIX (6) 8" snows with a few ice storms thrown in. NO way I'm getting involved in averaging that!

    Good Luck!