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Weather Forecasts and Business Planning

Discussion in 'Commercial Snow Removal' started by hansenslawncare, Jul 13, 2013.

  1. hansenslawncare

    hansenslawncare Senior Member
    Messages: 300

    Has anybody observed/studied the weather forecasts and used that for their business planning (snow removal obviously?) I understand that making a strong/or big business decision based upon "weather forecasts" is a gamble but I also understand that being in business takes guts.

    Where's the fine line between the two?

    More importantly though, if you used the "weather forecasts" to plan for purchases, etc. for snow removal, how has that worked out for you?

    I know these are some loaded questions so any help is appreciated.

  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Simplest thing is plan for the worst ,hope for the best and have back up equipment at the ready,
  3. cet

    cet PlowSite Fanatic
    Messages: 7,192

    Whether you have a seasonal contract or per plow customers, if you know the average # of snowfalls and/or saltings for your area you should be fine. You might have trouble the first couple of years if you don't have some money behind you and the winters are far from average. For instance if you are plowing per time and there are only 6 plowing events. You may not make enough money to cover your bills. On the other hand if it snows 25 times and your average is 18 then your cost will be higher. A mix is good but if I could only pick 1 it would be a seasonal contract and multiple year.
  4. merrimacmill

    merrimacmill PlowSite.com Addict
    from MA
    Messages: 1,822

    I've talked a bit about this on the forum. It all comes down to planning for any situation that the weather will present you. The easy part is balancing seasonal accounts to cover fixed costs vs. per service accounts to cover operating costs so that you will end up with a profit at the end of the payment cycles. There is a very mathematical way to balance this, and if you can hit the sales numbers for each account type, you will have no trouble. However, the difficult part is figuring a way to have proper cash flow during the thickest part of the season, when you will be receiving checks all the way into June for work performed in February..