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Tiered Pricing - What's Your System

Discussion in 'Commercial Snow Removal' started by gmlcinc, Oct 14, 2012.

  1. gmlcinc

    gmlcinc Junior Member
    Messages: 23

    For those who use the tiered price system on commercial lots, what depth of snow increments do you use, and what's your percent of price increase for these increments?

    Is your system the same for residential? Just trying to see how others compare to what I'm doing.

  2. Ramairfreak98ss

    Ramairfreak98ss PlowSite.com Addict
    Messages: 1,885

    I guess your new to this? :p Most contracts already state 2-4" 4-6", 6-8" etc... some are 1-3", 3-6" 6-9" or 10"+ then a price per inch, for anything billed per storm...

    From most of my numbers and from what i've seen with other contractors, generally 20-30% more per tier... thats not saying one account cant be 15% more per tier and another with lots of challenges and time consuming constraints doesnt go from $200 for 2-4" per storm to $350 or even 400 "double" for a 6-8" storm.
  3. gmlcinc

    gmlcinc Junior Member
    Messages: 23

    Been doing it for about seven years, but none of my accounts have required any kind of system. They pretty much just want a per push price. We don't have a lot of huge lots, more of a rural area.

    But a while back I implemented a system as we started doing more and for the bigger lots to cover our selves. Most of the time however, we go thru and push them again before it builds up so we do a full bill again and don't often use the increment system. Thanks for the input!
  4. plowin-fire

    plowin-fire Senior Member
    Messages: 186

    I do 1-2.9 3-6.9 7-11.9 and 12+ for commercials. Residentials are 1-6.9 7-11.9 12+. The 12+ tier I just changed to the lowest tier plus my hourly rate. Just in case a blizzard or something fun comes along, I dont lose money.
  5. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Just give them a seasonal price.
  6. plowin-fire

    plowin-fire Senior Member
    Messages: 186

    Tried that, no one wants a seasonal after last season. Dont know of anyone in this area that offers them. I tried for a few accounts and no one liked that idea...
  7. DeereGuy

    DeereGuy Senior Member
    Messages: 346

    Everyone out here (NorthEast) thinks we're going to get hammered. El Nino and all. I have all seasonal's. I'd actually like a couple per push or per inch lots; Just might clean house.
  8. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,954

    More wide open lots where the depth is going to really add time I do smaller increments. 1-3 3-6 6-9 9+ smaller lots flat price or 1-4 4-8 8+. But for a lot of commercial places it shouldn't really get that deep that often.

    I've had a couple customers tell me we are going to get a lot of snow this year...no.idea where they're hearing it from though