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What are my services worth?

Discussion in 'Introduce Yourself to the Community' started by DRIFTER92, Dec 12, 2009.

  1. DRIFTER92

    DRIFTER92 Senior Member
    Messages: 124

    I have a 9-2 Poly VXT with a Silverado Diesel 3500, 4 Door, Long Bed, Duals. I want commercial lots b/c of terrible turning radius. Ive ran equipment since childhood but this is my first year plowing. I am available at any hour, with response time of an hour or less. No Salt capabilities on the truck. Area is West side Indianapolis. I have no insurance other than full coverage on my truck, the company knows i have a plow for hire. I assume i would work under an insurance umbrella of the contractor? New to the industry but i have been reading the forums for a while now and researched techniques and chatted with experienced plowers. I own my own business that is slow in winter months. Hours are unlimited, Im a hard worker and very reliable, running a business of my own i know the importance of customer satisfaction. I'm just not sure how much $/HR or Fuel+$/HR i am worth. Let me know guys :drinkup:
  2. forestfireguy

    forestfireguy PlowSite.com Addict
    Messages: 1,276

    It varies ALOT from place to place across the country........varies locally too. I have guys who came looking for work saying they were paid 40hr plus fuel and guys who won't plow for less than 125hr. We pay around 75-95 hr depending on the truck/plow........
  3. CarharttComando

    CarharttComando Junior Member
    from MI
    Messages: 15

    about the same here in MI, but it does very quite a bit, what your services are worth will generally be determined after the first snowfall, when the quality of your work is evaluated by said companie.. but i can tell you, you probably will have to provide the contractor with proof of commercial liability ins. (most have min req.of 2 mil. property damage ). before they will let you on any commercial lot as a subcon, also a commercial vehicle ins. policy. the reason for this is because they in the event of worst case scenerio generally want you to be responsable for anything you damage and if they dont have that info...than they are liable because they hold the contract..mid to large companies generally are not willing to bite the bullet on this issue...good luck tho sounds like a nice rig..
  4. t.i.b

    t.i.b Senior Member
    Messages: 140

    if you go to your locale dpw you can probaly get there list of rates for different trucks/equipment. that should get you in the ball park.
  5. hydro_37

    hydro_37 PlowSite Veteran
    from iowa
    Messages: 3,790

    Call around and ask about sub pay rates.
  6. DRIFTER92

    DRIFTER92 Senior Member
    Messages: 124

    I have upgraded to 1mil/1mil commercial coverage after reading here and talking with people about it. I have talked with a handful of contractors since i posted this. One contractor was booked up but said my unit was well worth $70-$80/hr. Depending of course on how skilled i actually turned out to be. From what i have found it is between 55-75 here in indianapolis. I will stop by the DPW tomorrow and check to see if they have any vacancy and what they offer. Thanks for the replies.
    Last edited: Dec 21, 2009
  7. TJ Fed

    TJ Fed Member
    from Indiana
    Messages: 48

    Hey im in the same boat as you. I did find the rates in indy are terrible IMO I live in Greenfield and i know the county pays 125 and hour for 1 ton trucks and being a sub in Indy the rates are like 50 to 90 im getting 50 for the one im doing but next year im going to be doing it thru a more well known company that pays much better. However since this is the first year for me I committed to the company so im gonna stick it out.
  8. DRIFTER92

    DRIFTER92 Senior Member
    Messages: 124

    Well i have a problem now that i have signed a contract for $55/hr. while i have an offer for $65. The bottom line for me is i have to pay for my equipment loan, taking that in consideration what would you do? Offer the company a chance to keep me at $65/hr? If they don't take the offer then obviously they aren't in dire need of my services, i would think... I'm a man of my word but bottom line is i have bills to pay and a family to feed so i have to look out for them first priority. To me with limited plowing here in indy already $10/hr would mean a lot. Don't want to piss anyone off but then again my services are worth more than $55. To me it seems they low balled me to start with, but is that enough justification to bounce on the company?
  9. Bajak

    Bajak Senior Member
    Messages: 999

    That's a tough call......You have to figure out what it will amount to at the end of the day.
    Who has the most work?
    Are they paying from beginning to end or is it just for time on the lot?
    Will you be doing clean up or are they just using your service for the initial clearing?
    Can you take on a little work from both companies?
    Will either company be capable of giving you work when it is not snowing?

    I would let the 1st company know you have an offer for more money per hour and feel out their reaction. They may bump up the pay.

    As a solo operation myself, I have to decide which job is best in the long run. I always like to go for a higher hourly rate.

    But 30hrs @ $55 is better than 12 @ $65 for an individual.

    Good luck:drinkup:
    Last edited: Dec 22, 2009
  10. Wayne Volz

    Wayne Volz Senior Member
    Messages: 694

    Something to think about

    In Greenfield, Indiana and your annual plow opportunities, you may consider changing right away. At $50.00 an hour, it is probably not worth the time, effort, were and tear on equipment, your commitment, and profit margin.

    I am not trying to tell you what to charge because everyone of us have a different break-even point. Just make sure you have calculated your costs per hour of operation and added the above contingencies and make sure that it makes sense at $50.00 an hour.

    Good luck at whatever you you do. Have a great holiday season and please don't take this post a criticism. If you are looking for something to calculate break-even points for your company based on your overhead, expenses and use-rates, check out www.profitsareus.com or call us at 800-845-0499.
  11. TJ Fed

    TJ Fed Member
    from Indiana
    Messages: 48

    Thanks Wayne ya as I said I wont be doing and sub work thru this company next year I can get $85 and hour I believe doing the local county roads but I didnt get in on the cutoff soon enough. But the other reason im doing this work is the owner of the landscape company is one of my teachers sons so don't wanna burn any bridges there. But what do you mean by your plow opportunities.
  12. Bajak

    Bajak Senior Member
    Messages: 999

    I think he's referring to the number of times you will actually plow in a season.
  13. TJ Fed

    TJ Fed Member
    from Indiana
    Messages: 48

    Ok ya we dont get a whole lot of snow but its fun when we do lol.
  14. turb0diesel

    turb0diesel Senior Member
    Messages: 181

    $65.499997 gas included since you have no exp.
    your insurance
  15. Wayne Volz

    Wayne Volz Senior Member
    Messages: 694

    Thanks "Bajak" for your help.

    Thanks for your help. I did not make that clear. Something I did leave out was that you may want to consider offering deicing and anti-icing as well. I think we can all agree that there is nice profit dollars for you in that service. Not to mention it is normally at least a
    3-1 or better ratio vs. plowing events.