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Yep - I need some advice too!

Discussion in 'Bidding & Estimating' started by tbrownell, Oct 21, 2008.

  1. tbrownell

    tbrownell Member
    Messages: 81

    Ok guys, I am sitting here wondering what formula I should be using to price a lot I was given. Now I grew up around a farm and have been plowing for years but this lot is the only "for hire" lot I've done so I'm going to sound like a newbie to some of you guys.

    The price they want is per push and are requiring insurance.
    Is there a place to find avg number of snowfalls(events) in my area?
    I think this lot will take me about an hour to complete.

    any suggestions? I've got a few numbers rattling around in my head and I just want to make sure I'm not too far off.

    Thanks
     
  2. tom_mccauley

    tom_mccauley Senior Member
    Messages: 465

  3. hydro_37

    hydro_37 PlowSite Veteran
    from iowa
    Messages: 3,790

    You should have an insurance policy not matter what to plow snow. Spendy...yes
    Alot better then losing everything in a lawsuit.
     
  4. tbrownell

    tbrownell Member
    Messages: 81

    I have always had commercial ins. on my trucks so Im covered there. I was more wondering if anyone had a cool formula that could tell me what i need to make per plow so i can make some $$ off it and not be eating refried beans in the spring time. what ballpark are people getting for a truck/hr around west mich?

    I roughly figured this formula up and i was wondering how far off i am.

    I have a 2003 f250 5.4 gasser with a 9.2 boss v on it. the truck has a 28gal tank and i figure that i will use around an 8th of a tank per push on this lot. i want to figure it at $4 a gal for fuel so that 8th tank is going to cost me roughly $14. now if i remember right i pushed 28 times last year so i want to add a little buffer to that and call it 30. so now i multiply my 30 times by the $14 its going to cost me in fuel and i come out with $420 in fuel cost. now my insurance for my trucks is $1304 for the winter 6 months and i want to cover that too so i add my $1304 of insurance and my $420 in fuel costs and get $2608. now if i get less then 30 events i still want to be covered so i divide the $2608 by lets say 20 events and that come out to $131 per event.

    does that sound right? are my numbers way off? any advice would be kindly taken

    thanks again
     
  5. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,549

    yes I'm sure you do.
    but take a look at the policy.
    but i bet it does not say snow plowing or snow removal on it.
    It needs to be listed or your not covered.

    Maybe John can help you figure out your pricing structure?
    John is a whiz with the numbers..

    http://snow.grounds-mag.com/ar/grounds_maintenance_pricing_right/index.htm
     
  6. tbrownell

    tbrownell Member
    Messages: 81

    the insurance type i have is "winter season - landscaping/snow removal" and it is spelled right out on the contract.
     
    Last edited: Oct 22, 2008
  7. platinumpimps

    platinumpimps Member
    Messages: 43

    Now you need to figure in what you want to make! For your time, and wear on your vehicle. Price per lb. of salt, and what about walk-ways? Drive time to and from the job. You are half way there, try to figure in these factors too. You'll be glad ya did.

    "A good reputation is based on being the best, not the cheapest."
     
    Last edited: Oct 22, 2008