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What else do you do during the winter to fill the revenue stream?

Discussion in 'Business Fundamentals' started by alldayrj, Jul 28, 2011.

  1. alldayrj

    alldayrj PlowSite.com Addict
    Messages: 1,096

    As student loan payments roll on, I'm left thinking about the future, and in the near future - this winter even though its not even August. This question is posed more towards the landscapers/concrete guys/others who do something besides plowing for 8 months out of the year.

    I personally do concrete, brick work, grading, small excavation and sod. obviously this can't be done when there is snow on the ground, or during freezing weather. Here in NY, we have winters like last winter with multiple 12+ storms, but then there are other winters (like when we bought out first plow :cry: ) when there was not one plowable storm.

    do you guys bankroll enough to live through the winter if there is no snow income ? what else do you do to pay the bills?

    thanks

    Richie
     
  2. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,953

    We have some seasonal contracts so there is guaranteed money coming in
     
  3. merrimacmill

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

    cover your fixed overhead cost (including your own salary) with seasonal contracts. If you have a 1/3 to 1/2 of your contracts as seasonal, and the rest per event, per push, and per application, then providing you know what your doing when it comes to bidding, your revenue will grow as your expenses grow with increased snowfall.

    I personally have developed a series of spreadsheets for my snow management practices, but one I have automatically calculates this all out for 5 different seasonal snow totals ranging from way above our seasonal average, all the way to a no snow. As I get accounts for the season, I enter in the numbers. It will then create a basic p&l for different hypothetical winter scenarios to make my best attempt at being sure my plans will work for the season and that my ratios are all on.

    There is obviously no way I can say it is perfect, and it won't give exact figures of what will happen since snow is such a dynamic thing and there are hundreds of variables that can effect the profitability by the end of the season, but it at least gives me an idea of what I'm doing while bidding so I can add, remove, or sub our certain contracts in my portfolio to ensure profitability.

    Systems like this are a PITA to always stay on top of and design in the first place, but I've found the information from this and many others I have to be incredibly valuable in the decision making process we all go through.
     
  4. alldayrj

    alldayrj PlowSite.com Addict
    Messages: 1,096

    wow, thanks collin. great advice. I guess I need to get more aggressive on the seasonal contracts and also nail down my expenses and overhead a little tighter
     
  5. OCPW

    OCPW Junior Member
    Messages: 7

    Teach and power wash.
     
  6. Dirty Jersey

    Dirty Jersey Senior Member
    Messages: 155

    I work for the public schools in my town as a HVAC/R tech, Also have my own business to doing the same trade. OCPW I'm right over the bridge in EHT. I have a few buddies that are on the FD over in OC. And cousin teaches over at the HS.
     
    Last edited: Aug 6, 2011
  7. OCPW

    OCPW Junior Member
    Messages: 7

    Small world. I probably know them or atleast know of them. I know several EHT teachers.
     
  8. Dirty Jersey

    Dirty Jersey Senior Member
    Messages: 155

    Cool! Do you plow for yourself or sub off of someone?
     
  9. OCPW

    OCPW Junior Member
    Messages: 7

    I plow for myself, I just started last year and only took on 10 residential accounts. This year I am taking on 20 residential accounts.
     
  10. Dirty Jersey

    Dirty Jersey Senior Member
    Messages: 155

    Sweet! Good luck with them. If you should ever get in a bind feel free to give a shout. Would be more then happy to help you out. I do my own stuff and work for my neighbor whom has one of the largest landscaping business in the area. I might be able to get you some work if its another winter like last season.

    Sorry to get off the Op's topic
     
    Last edited: Aug 6, 2011
  11. OCPW

    OCPW Junior Member
    Messages: 7

    Thanks, I probably know your neighbor also. I have owned and operated the largest power wash business in Ocean City for 11 years.
     
  12. Dirty Jersey

    Dirty Jersey Senior Member
    Messages: 155

    Probably do then LOL! That's great to hear! Good town to be in business in. Except on Sunday's. I have been stopped a few times right of 9th street, cause I had a ladder on my truck.
     
  13. snowplowpro

    snowplowpro Senior Member
    from NJ
    Messages: 901

    I DO SCRAP METAL AND JUNK CARS AND I ALSO DO SOME HANDYMAN WORK AND PAINTING AND WORK FOR SOME FRIENDS WHO MIGHT NEED A HAND OR SOMETHING IM OPEN TO WORK WITH THEM .:drinkup:payup:mechanic:
     
  14. alldayrj

    alldayrj PlowSite.com Addict
    Messages: 1,096

    i do scrap whenever I get the chance but its not that reliable. Its like free money lol
     
  15. TJS

    TJS PlowSite.com Addict
    Messages: 1,346

    I weld and fabricate on the side. I work full time in the Corp. world. When it snows I can "work from home".
    T.J.
     
  16. alldayrj

    alldayrj PlowSite.com Addict
    Messages: 1,096

    I bet the fab and welding calls pour in the deeper the snow gets.
     
  17. snowplowpro

    snowplowpro Senior Member
    from NJ
    Messages: 901

    i hear you i do scrap whenever i could to but sometimes you win or lose
     
  18. LunchBox

    LunchBox Senior Member
    Messages: 293

    I repair heavy equipment, mostly cranes, that keeps me going 12 months a year. My father thinks the snow is money coming in on days we can't get out on jobs in town or get up to the shop, but it's really for fun :confused: