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yearly accounts

Discussion in 'Commercial Snow Removal' started by 06D-MAX, Feb 1, 2007.

  1. 06D-MAX

    06D-MAX Junior Member
    Messages: 2

    I am thinking about starting to do yearly charging instead of per hour and per time. any tips on keeping price low enough to keep customers but high enough to make a profit??
     
  2. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    That's called a Seasonal Account. Basically, you'll be using averages and trying for multiple year contracts. Figure the cost for an average push for any account and the average number of pushes per winter. I usually knock off one or two as an incentive. Then get your money in advance. If not the whole winter, then 1/2 up front and half by, say, Feb 1st. One problem some run into with seasonals is that the customer will want service if there is actually less than the agreed on amount. Like the one I've got set up with a 3" trigger. The guy has called wanting it plowed at less than 3". Just another thing to plan for.
     
  3. LwnmwrMan22

    LwnmwrMan22 PlowSite Fanatic
    Messages: 27,980

    I run my plowing on a monthly fee.

    I base mine off of 18 plowings per year.

    I figure how much I want to make on that lot each time I plow, usually around an hour, usually around $100.

    I then multiply that number by 18, so it's $1800 for the year.

    I'm talking small bank parking lots, strip malls with 2-3 tenants, stuff that normally takes about an hour to shovel the sidewalk and plow.

    I don't get paid 1/2 up front, all of mine are bundled together with the lawn maintenance agreement, so it's 12 equal payments, monthly.

    My biggest tip, is to sell them that you're providing insurance that their lot will be clean before they open / leave for work. They don't always use their car / business / house insurance, but when they do, it's nice that they have it.

    Also, most of mine are at a 1.5" trigger, with a line in the agreement that says anything less than 1.5", or called to salt, is an extra charge.

    This comes into play when you get back to back to back to back days with flurries -> trace of snow that adds up, but not enough to get to the trigger, and the client calls.

    I charge an extra $100 / hour to clean up an event like that.

    However, this year I've done a couple of them, and not charged the client, since I've only been out a total of 4 times so far, and even a couple of those were only about 1" at the most.

    So far we're sitting at a total of 8" at my house for the year......