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solve argument please

Discussion in 'Commercial Snow Removal' started by mylittlescoop, Feb 25, 2005.

  1. mylittlescoop

    mylittlescoop Senior Member
    from nj
    Messages: 101

    Hello all, need question actually have a couple questions I will have to ask in separate posts but this one first.

    When large contracts are being performed are they charging the site for storing the equipment there? I see large contracts such as malls and stuff with equipment at site through most of the season. Is this for easy disposal at contractors discretion or is it necessity figured into the bid amounts?
    A friend of mine has been arguing with me telling me the trick is to charge them for everything and anything including storing the equipment on the premises.
  2. greenworldh20

    greenworldh20 Member
    Messages: 84

    we do not charge to store equipment on site. storing it on site actually helps us. we have quicker response time and save on overhead. in the future we would like to charge for storage but in our tight market, we would price ourselves too high. we try to keep commerical accounts close together so one piece of equipment can service many accounts quickly.

  3. mylittlescoop

    mylittlescoop Senior Member
    from nj
    Messages: 101

    Thats what I was thinking too only one of these sites is a major mall local not a strip plaza or home depot but a huge shopping mall. I was thinking it would win us over if in fact competiors are charging for storage.
    My friend has LOTS of manpower I am trying my best to get this down to a science only I am having trouble trying to figure out my pricing without coming in as a low baller.
    Lots of companys believe it or not can spot a low baller a mile away that is why the lowest bid does not always win the game. It is more about quality, response reputation ect.
    I do not have a lot of experince but was blessed with 30 years of service name behind me. My dad passed away and my brother took over everything when my brother died last year I have been learning the ropes trying to get this down to a science. It is not like I just decided to wake up and try to start a plow buisness it is more like you wake up and find your empire already built for you just have to take a side line until you learn a little more. I have the commrecial name, location and insurance because we have an auto body shop only I am not trying to bite more than I can chew right now but when I come in I am coming strong.
    I just want to make sure I charge competitively.
  4. gpin

    gpin Senior Member
    Messages: 390

    I always discuss the issue of storage with the property manager and never thought of charging for it as it is a benefit to my business. Some "opererators" I know are tight with the property manager and are able to engineer extra costs thru the manager to the owners of the building. I wouldn't want it done to me so I always keep my contracts simple and try to leave out any room for interpretation. Some of the offices we service have turned over ownship and I have retained the contracts 90% of the time based on service and a fair contract.
  5. mylittlescoop

    mylittlescoop Senior Member
    from nj
    Messages: 101

    That is my so true. I have 4 big contracts in the works. I was thinking 95.00 per hour up to 8 inches of snow 110 for 8 or more inches. In your opinion is this a fair price ?. Was going to do 100.00 per hour for bobcat and 135 for large bucket.He says I am not charging enough. I do not think I am low balling. I think that really big company's that have tons and tons of equipment may charge higher prices but your paying for the name reputation ect. I am still building my name and reputation.We are known for local service but larger contracts we are like a pea in a pod. Know what I mean?
    I was also going to do salt sand @ 125 per hour. per truck.
    I do not want to come in as low baller however I do think that larger company's should get contract pricing versus a smaller scale parking lots that only want you to plow at their discretion, the "I will call you when I need it" plowed type people.