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Turned down on per inch should i switch to seasonal contract

Discussion in 'Business Fundamentals' started by adam5557, Oct 15, 2005.

  1. adam5557

    adam5557 Member
    Messages: 88

    Hey guys i have gave out 4-5 quotes for snow removal by my per inch formula that i got from here which is 2-6in base price ,6.1-10 1.5x , 10.1-15in 2x the base price ,and then 15+in add 2.00 for every additional inch. Many of the people i have gave quotes said last year they did seasonal contracts,but i said we only do per inch price for residential. I feel like i am losing every bid so far and i need to make a change quick as this is my first year and need at least a few residential driveways. I would really appreciate some help on coming up with a seasonal contract and a price on it. I have been hearing people have been billing 10-13 plowable snows in my area. Anyone that has any info to help me let me know.thanks.adam
     
  2. stumper1620

    stumper1620 Senior Member
    Messages: 222

    What is your area Adam?
    I found people around my area don't like per inch pricing, (It just don't work when you are going against every county boy with a plow) the way I do it is I have about half my residentials set up seasonal based on 12 pushes a season,(2" and up) If we have a light winter my seasonals pay the bills, If we have a heavy winter the per push is bonus money that covers for any loss for seasonals that are pushed over 12 times. You really want seasonals, they are very dedicated customers that return year after year, If one is a PITA just tell them the following year that You are directing your service more commercial and you just can't promise the service they will expect. My seasonals are all on never ending agreements, ( they can be cancelled at the end of any season, If I am not informed that its cancelled it is automatically renewed unless I want it cancelled.) I just stop by their houses at the first of November to collect a check or drop a bill, check the area for changes from last year and let them know when it snows I will be there.
    The key is to find out what the others in your area are doing when they price a drive, If they are pricing and a per push you will not stand a chance on per inch, most non business guys with plows just say "Duh, I'll plow you out for 20 bucks when it needs it" You and I cannot compete with that so we need to sell the full season service as the best way to go. In my opinion that is the best way to have it, less abuse on the equipment because you determine when and howoften a drive needs it. I would rather push a drive 2 times in a 15" snow for a seasonal based on 40 bucks a push than 1 time for 40 bucks
     
    Last edited: Oct 16, 2005
  3. adam5557

    adam5557 Member
    Messages: 88

    I am from the birmingham/bloomfield area. Could anyone help me with seasonal pricing and how many plowable snows we have.thank you
     
  4. The Coach

    The Coach Junior Member
    Messages: 25

    Adam,
    I did a little research with the help of a friend at the National Weather Service.

    In the last 10 years we average 10 snowfalls a year over 2 inches in depth in Metro Detroit. With only 1 or 2 of those being over 6 inches.

    I base my contracts on those numbers.
     
  5. adam5557

    adam5557 Member
    Messages: 88

    hey thanks my seasonal states 10 pre paid snowfalls and the rest are a per push price.thanks
     
  6. greenpastureslc

    greenpastureslc Junior Member
    Messages: 26

    Why not base your seasonal on how many inches per year divide by a 2" or 3" trigger.

    Go HERE to find yearly snow fall.

    This is an avg. it may snow more it may snow less. I believe with this pricing method you would be closer to how many times your actually going to be at each location and you don't have to worry about pushing 12" of snow when you get there. 2" to 3" will be easier on your equipment than 12" and they're still getting a seasonal price. Even if you have to go back a couple times each storm you've already covered that in the price. It's better to give one price upfront than to start charging per push after you plow 10X.

    Paul
     
  7. gene gls

    gene gls PlowSite.com Veteran
    Messages: 481

    I have found that plowing by the "inch" is to confusing for most people. They understand per visit at 2"-4" much easyier.

    Gene