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Snow contracts

Discussion in 'Commercial Snow Removal' started by EFH, Nov 1, 2011.

  1. EFH

    EFH Junior Member
    Messages: 7

    I am new to this site today. I am curios on how you guys do your contracts? I give them a set price, Last year i got hit BAD and really didnt make much profit. I wanna put some kind of clause in my contract like over 25 visits it will be so much more per visit or maybe after so many inches? At the same time i dont wanna scare them away being most of them wanna go for the cheap guy which im not. Can anyone help?
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    That's the roll you take with seasonal contracts,which I like.
  3. JTVLandscaping

    JTVLandscaping Senior Member
    Messages: 860

    This says it all.
  4. EFH

    EFH Junior Member
    Messages: 7

    You like plowing a driveway 38 times in a season grandview? Your crazy
  5. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

    If your "not the cheap guys" then you should be making some decent $...that said plowing 30% more then you thought will eat up some profits but its the nature of the beast with seasonals... just do a good job and try to get them to commit to a 3 year deal which minimizes your risks
  6. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I only do commercial,I don't even plow my own driveway half the time.
  7. blowerman

    blowerman PlowSite.com Addict
    Messages: 1,261

    I love seasonal contracts. If you put a cap on it that's not a seasonal, now is it.
    You could provide a time limit contract, such as: I stop plowing after February...
    What if it doesn't snow? will you give them back half of what they paid you?
    I'd assume you are using a base figure to calculate a rate? So, if that's 20 times, then you'd need to send them back money if you only plowed 10, right? Only fair since you want them to pay more if it's 30 clearings.

    This is what makes a difference between "snow removal business" and earning a little extra money.
  8. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,954

    That's why it isn't bad to have a mix of per push and seasonals. Why would anyone sign a seasonal if its not inclusive? There's no benefit to them at all.

    Who plows their own driveway? Just drive over it a couple times. If you get 6"+ I can see dropping the blade so the old lady's grocery getter doesn't get stuck, but chances are if she's got a hubby/bf/lover in the plow business she can navigate a snowstorm.
  9. MatthewG

    MatthewG PlowSite.com Addict
    Messages: 1,390

    x2 on this Thumbs Up

  10. Landcare - Mont

    Landcare - Mont Senior Member
    Messages: 351

    Seasonal contracts are based on your area's average winter. We only do commercial and municipal snow. Our commercial contracts run from November 1st through April 30th, 225 cm maximum (10-year average is about 200 cm). If the seasonal snowfall goes over 225, we charge for the overage at a percentage of the contract amount per centimetre around the 15th of April. The majority of them are a 5-cm trigger and our customers seem to be happy to sign year after year after year .... We also use a bit of discretion on charging for the overage. Two years ago, we had 235 cms and didn't charge anyone extra. Four years ago, we had 371 cms and had a really good season. Luck of the draw.

    Messages: 79

    I plow my drive twice each storm ,once on the way out and once on the way in.

    Easier to buy hte wife a 4wd then to worry about the snow in between plows.
  12. Plow man Foster

    Plow man Foster PlowSite.com Addict
    Messages: 1,153

    Im right with you on this one! I live about 20 miles out from MAJORITY of my customers so thats how its done! Its Crazy when you leave and plow it there is like 1.5" Then when i come back there's 4" im like :realmad: lol
  13. EdNewman

    EdNewman Senior Member
    Messages: 254

    I try and split it 50/50 between fixed seasonal contracts and pay as it snows.
  14. Red Bull Junkie

    Red Bull Junkie Senior Member
    Messages: 159

    X2 :drinkup: or :cry: lol
  15. scottL

    scottL PlowSite.com Addict
    Messages: 1,600

    :laughing: Amen brother .... The wife yips at me for not plowing our driveway much either.
  16. Red Bull Junkie

    Red Bull Junkie Senior Member
    Messages: 159

    Smart man. Only way to go imo, especially if you have some overhead expenses hanging out there.......they still get paid when it doesn't snow.