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What do you think of my pricing?

Discussion in 'Introduce Yourself to the Community' started by gregm93, Sep 30, 2015.

  1. gregm93

    gregm93 Junior Member
    Messages: 3

    This is my first year plowing for profit and i'd like to avoid that rookie mistake of underbidding everything. Below are the numbers I worked out for my residential per push accounts. Gas is estimated at $9/hr (3 gal/hr x $3.00/gal), my insurance figure could be way off as I'm currently pricing out different options but I added an $11 ins charge to every visit (based on 25 plow days at 15 accounts) which comes out to just over $4k for insurance. There is also a $30/hr charge for maintenance and finally $42/hr for labor. Bring on the harassment gentlemen.

    10min $1.50 $5 $11 $17.50 $7 $24.50

    20 $3.00 $10 $11 $24 $14 $38

    30 $4.50 $15 $11 $30.50 $21 $51.50
  2. gregm93

    gregm93 Junior Member
    Messages: 3

    I apologize my table came out a little jumbled. Some other relevant information my setup is a 2011 f250 with an 8'6" Western mVp3
  3. Dogplow Dodge

    Dogplow Dodge 2000 Club Member
    from NJ
    Messages: 2,547

    Wow !

    Where are you located ? I'd like to work out a deal, if you're nearby. You work cheap. ( at least by our standards here)...

    Can I hire you as a sub, so that I can stay home ?


    Not really harassment, but at least I gave it my coolage try !! :bluebounc
  4. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 5,110

    $92/hr. Or $103/Hr if I get you by the half hr. So how long to do my drive...? How much for the season? Do I get a senior discount? Can I couple that with a prepay discount? If I shovel it before you get here do you give me money back? ...and you think we harass...
    Last edited: Sep 30, 2015
  5. Dogplow Dodge

    Dogplow Dodge 2000 Club Member
    from NJ
    Messages: 2,547

    The 10 minute one seems closest to me....

    $147 an hour is not terrible from what I hear, or should I say read here frequently.

    For me, I wouldn't leave home for that, unless it was for an underprivileged child, veteran, elderly, or really hot chick. Then I'd have no problem making that kind of coin.... especially if she was a hot chick...Thumbs UpThumbs Up
  6. gregm93

    gregm93 Junior Member
    Messages: 3

    I am in the Buffalo NY area. What about my prices do you think is cheap? Just my labor or is there more costs associated that I should be accounting for? Appreciate the feedback
  7. Dogplow Dodge

    Dogplow Dodge 2000 Club Member
    from NJ
    Messages: 2,547

    You've made a very astute observation. It has nothing to do with your pricing. It has to do with MINE.

    Where I live is crazy expensive, as I'm surrounded by goofs. As matter of fact, I may be one myself, but I haven't yet realized it.

    Again, if you lived HERE, I could pay you and stay home while you worked. In your market, again, from what I've read here, you might be onto the right track....

    or not.

    Since you never stated where you were from, until now, I was just assuming it wasn't from here.
  8. Turbs3000

    Turbs3000 Junior Member
    from Midwest
    Messages: 20

    It's all about the market you live in. We can hire plow boys all day long here for 80-100/hr.

    Only suggestions are how are you accounting for travel time and your insurance could probably be fudged better into an hourly rate using a bare minimum hours in a season you'll plan on working.
  9. linckeil

    linckeil PlowSite.com Addict
    from CT
    Messages: 1,260

    it's good to know your costs and break them down as you have done, but if you're working on your own (not subbing) you should really be well over $100 per hour with a 3/4 ton truck and V plow. price per the job, not per the hour. what happens as you grow and get more efficient equipment? now the job can be done in a quarter of the time and you are still charging the same cost per hour?

    I am a small one man show and do only driveways. all are priced per the job (as is the norm) and I'm averaging over 3 times what you are proposing to charge. again, markets differ.
  10. maxwellp

    maxwellp PlowSite.com Addict
    Messages: 1,112

    I will not work for an hourly rate. By the job only. People will watch and keep track of time. When it is by the job, I can use a 10 foot plow or a tea spoon as long as it gets done. :)
    You can use a per hour rate to help work up a price. Price is very location dependent. I do mostly residential and a "plow only short drive" $45. I may plow it 2 or so times a storm, take 5-8 min or so. But then you had to get there and to the next one. That is why hourly will not work. 5 min. $45 = $540 per hour. I think this would net about 0 Jobs.
  11. LapeerLandscape

    LapeerLandscape PlowSite.com Addict
    Messages: 1,466

    This is another fine example of a newbie (nothing bad against you gregm) asking if his pricing is inline and he doesn't have a location in his login line. Every location has different pricing and I have asked the moderators for this to be mandatory as it used to be in the past. The first question to the OP, where are you located. You wouldn't even have to use your exact location, just a close proximity would be great.
  12. Jguck25

    Jguck25 Senior Member
    Messages: 591

    I think your maintenance charge is low. Also what about replacement? Your truck and plow won't last forever.
    And you are also not accounting for travel time
  13. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 7,921

    And what about everyone not listing everything they own in there sig line...:dizzy:

    asking what to charge is a case by case .
    Only the op knows what he needs to charge to make a profit in any location,
    if they don't know this they are not ready to be a businessman/ business owner.


    he could be single, living in mom's basement and his truck and plow is paid for
    or he could be married with kids and mortgaged to the hilt with a truck and plow payment.
    who has to charge more to make a profit?
    Last edited: Oct 1, 2015
  14. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,477

    Sounds like a moderator we all know and love. Lol
    Last edited: Oct 1, 2015
  15. BUFF

    BUFF PlowSite Fanatic
    from FR NoCo
    Messages: 6,780

    X2, to add to that I pay my helpers by the job too, money is a powerful tool to motivate if you have the right people.
  16. linckeil

    linckeil PlowSite.com Addict
    from CT
    Messages: 1,260

    I can make profit at $100/hr or at $400/hr, whereas the next guy may need to see $400/hr to make anything. there's more to it than just making profit. it's about keeping prices in the industry where they should be - not where you make just enough to survive. if my costs are lower than the next guy I could afford to drop my prices, but why? get paid what the market bears, not what affords you a small profit. I would have left this business a long time ago if I was just scraping by.
  17. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 7,921

    My bad, I dindnt mean profit not to mean making a living.
    Now what class?

    And or why not be the highest priced guy?
    Screw quantity, go for a few quality.

    Id indent think anyone has mentioned plowing for beer money?

    But Then the last beer run I made cost me $800:drinkup:
  18. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    driveways in Buffalo,250-500 for the season. Don't matter what your rate is per hour,it's Market rate, too low and you'll loose money, To high,nobody will call you.
  19. Jguck25

    Jguck25 Senior Member
    Messages: 591

    I know you've been pretty successful and you're a smart guy, but honestly, how do you make money with rates so low? How many events do you have? Our average customers pay that in just a few storms
  20. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I figure on 25 plows per season, Low cost of living here helps,most guys who do driveways have another job so its pocket money to them. You have 20 driveways close to each other and its a quick 8-10 k for the season.