Snow Plowing Forum banner
1 - 20 of 25 Posts

·
Registered
Joined
·
2 Posts
Discussion Starter · #1 ·
Good Morning all fellow snow plowers, I am contacting you all this morning on the community portal to state one simple fact & ask for your help & assistance regarding the cost increases we will incur this upcoming winter season. Fuel has increased (as of today) 55% from last winter & all materials are much higher than we are usually used to. I received a bid from a large corporation this morning (I won't say who), but they are trying to get us to commit to last year's pricing. This is NOT right; we have to stick together & make sure we at least get our cost increases covered in our 2022-2023 bids. If we start accepting these bids at these low amounts, or at last year's pricing, we are going to be screwed. Basically, I am asking for us all to come together & make sure we implement an increase across the board on all of our bids to ensure we cover our costs & don't go bankrupt by mid-season. Does anyone agree? What are your thoughts? How do we get the word out to the new & very young companies? Please assist & chime in. I'd really like to hear what you all have to say about this.
 

·
Premium Member
Joined
·
14,755 Posts
Customers can ask for whatever they want. If they want to ask for you to drop your price 25% from last year, that's their prerogative. Just like it's your prerogative to decide whether or not you laugh at them for it.

Edit: Oh, and technically colluding with competitors to raise prices is called price fixing and illegal. But don't worry, I know that snitches get stitches.
 

·
Registered
Joined
·
14,404 Posts
What's our union number again?
 

·
Registered
Joined
·
2 Posts
Discussion Starter · #4 ·
Yes, I understand. I am just trying to spread the word, that if we accept same pricing as last year, we will lose our shirts & it's not a good trend to start. It only takes a couple contractors to accept this & then the rest of us either have to follow, or decline the bid. And some of these bids are customers we've been working with for years, so it's upsetting & frustrating.

Also, I think I didn't word some of my original post correctly, I'm not fixating or asking for everyone, or anyone to increase at a certain percentage for price gouging, or telling anyone to increase period, I'm just trying to spread the word, please at least cover your costs. This year I've seen the largest increases in 2 different industries that I've been managing & own for 15 years, these increases are big hits & they need to be passed down to the end user, the contractor shouldn't take the hit. How can you stay in business if you absorb these types of increased costs? From my research so far, it sounds like ice melt & salt suppliers are increasing their products around 25%, labor has increased (depending on the company & state, my state is high becuase they raised min. wage so high) & diesel fuel as of now has increased 55% at least in western mass where it stands today from last winter season. I am just asking contractors to be careful & consider the cost increases we're seeing across the board. Awareness & warning contractors that if they don't account for these costs, they can put themselves in a very bad situation. I don't know how many jobs we've had to take over because the contractor under bid the project & had to walk off the site once they realize they don't have enough funds to finish the project. I just don't want to see the same thing happen for plowing this season.
 

·
Registered
Joined
·
2,984 Posts
Customers can ask for whatever they want. If they want to ask for you to drop your price 25% from last year, that's their prerogative. Just like it's your prerogative to decide whether or not you laugh at them for it.

Edit: Oh, and technically colluding with competitors to raise prices is called price fixing and illegal. But don't worry, I know that snitches get stitches.
huh; learn something new every day..... and I thought that was called being in a union!
 

·
Registered
Joined
·
4,461 Posts
Fuel has increased (as of today) 55% from last winter & all materials are much higher than we are usually used to. I received a bid from a large corporation this morning (I won't say who), but they are trying to get us to commit to last year's pricing. This is not right.
Your math is a bit fuzzy. As of today fuel is up one dollar…Not 55% higher from last winter. Deicer costs are not much higher than what we are used to. Maybe you haven’t been doing this too long? Depending on what year in the past you want to refer to, those costs have been either lower, higher, triple, quadruple and/or through the roof if you can even find it.

Your prospective client can ask for whatever they want. So can you. Sucks to want. Know your numbers and stay competitive, or you can guess at it and think you know what you’re doing. You’re in your own pond. You can collude (or rather discuss pricing) through your own network. You can’t really scale that though.
 

·
Premium Member
Joined
·
14,755 Posts
Basically, I am asking for us all to come together & make sure we implement an increase across the board on all of our bids to ensure we cover our costs & don't go bankrupt by mid-season. Does anyone agree? What are your thoughts? How do we get the word out to the new & very young companies? Please assist & chime in. I'd really like to hear what you all have to say about this.
The issue is that no company goes out and deliberately tries to work at a loss (unless they are a startup burning through investor seed money but that probably doesn't apply here) - the problem is business owners who don't know how/can't be bothered to figure out their costs and base their pricing by creating threads on internet forums asking "How much do I charge for this?" (hypothetically)

They then hope that at $X/hr, /job, /inch, /whatever they are then profitable in the end. Fingers crossed.

If you figure out a way to fix that, I'm sure everyone on here would be all ears.
 

·
Registered
Joined
·
51,646 Posts
I am contacting you all this morning on the community portal
Huh?

I received a bid from a large corporation this morning (I won't say who), but they are trying to get us to commit to last year's pricing.
If you received a bid, wouldn't that make YOU the customer?

I receive bids from vendors. I provide bids to customers.

This is NOT right; we have to stick together & make sure we at least get our cost increases covered in our 2022-2023 bids. If we start accepting these bids at these low amounts, or at last year's pricing, we are going to be screwed. Basically, I am asking for us all to come together & make sure we implement an increase across the board on all of our bids to ensure we cover our costs & don't go bankrupt by mid-season. Does anyone agree? What are your thoughts?
Well, #1 I believe in a free market, so my competition is free to do whatever they want with pricing as am I. And the customer can choose whichever service provider.

But, for me, I do agree.

How do we get the word out to the new & very young companies?
You just did. And while I wish it were different, I would hope that these young companies are managed by someone with a slight sense of bizness sense. Looking at large, well established companies, I know this isn't true. And I know that a lot of small, young companies are owned by operators/technicians that have a desire to own their own bizness.

So again, call it the free market, call it tuition at the school of hard knocks, whatever you want. If they can't figure it out, the free market reigns and they go out of bizness.

It only takes a couple contractors to accept this & then the rest of us either have to follow, or decline the bid. And some of these bids are customers we've been working with for years, so it's upsetting & frustrating.
That's life with the big dawgs.

I'm going to do some assuming here. You received a request from an NSP to accept the same pricing as last year. You are concerned other contractors are either too stupid or have huge egos to feed or both that they will accept that pricing. And you will be "forced" to do the same.

You aren't forced to do anything. We still live in a somewhat free country. Go get your own work instead of relying on some idiot in an office that has never seen snow except for TeeVee and wouldn't know a plow from a blower or a sander from a spreader. Stop relying on others to get your customers. And then be locked into someone else's pricing.

Is my assumption wrong?

I don't know how many jobs we've had to take over because the contractor under bid the project & had to walk off the site once they realize they don't have enough funds to finish the project. I just don't want to see the same thing happen for plowing this season.
Why not?
 

·
Registered
Joined
·
51,646 Posts

·
Registered
Joined
·
3,379 Posts
Your math is a bit fuzzy. As of today fuel is up one dollar…Not 55% higher from last winter. Deicer costs are not much higher than what we are used to. Maybe you haven’t been doing this too long? Depending on what year in the past you want to refer to, those costs have been either lower, higher, triple, quadruple and/or through the roof if you can even find it.

Your prospective client can ask for whatever they want. So can you. Sucks to want. Know your numbers and stay competitive, or you can guess at it and think you know what you’re doing. You’re in your own pond. You can collude (or rather discuss pricing) through your own network. You can’t really scale that though.
depends where you are at, last year diesel and gas hung around $3, was over $5 a month ago and has dropped $.50 so it may not be 55% but is a chunk of money for running plow equipment
 

·
Registered
Joined
·
5,781 Posts
Your math is a bit fuzzy. As of today fuel is up one dollar…Not 55% higher from last winter. Deicer costs are not much higher than what we are used to. Maybe you haven’t been doing this too long? Depending on what year in the past you want to refer to, those costs have been either lower, higher, triple, quadruple and/or through the roof if you can even find it.

Your prospective client can ask for whatever they want. So can you. Sucks to want. Know your numbers and stay competitive, or you can guess at it and think you know what you’re doing. You’re in your own pond. You can collude (or rather discuss pricing) through your own network. You can’t really scale that though.
Fuel is up about $1.62 from the installation of Biden.
Rectangle Slope Human body Font Line
 

·
Registered
Joined
·
4,461 Posts
Does everyone here roll through the corner gas station to fuel their trucks and equipment? Do you not realize how much money you’re leaving on the table? I suppose those who don’t have a real shop with fuel cells (that buy their fuel in quantity) will always be at a disadvantage to those that can scale their operation where it counts.

Same goes for your deicers. If you can’t buy it early and in quantity, and have the ability to store it you will always be at a disadvantage to those who can.
 

·
Registered
Joined
·
113 Posts
Does everyone here roll through the corner gas station to fuel their trucks and equipment? Do you not realize how much money you’re leaving on the table? I suppose those who don’t have a real shop with fuel cells (that buy their fuel in quantity) will always be at a disadvantage to those that can scale their operation where it counts.

Same goes for your deicers. If you can’t buy it early and in quantity, and have the ability to store it you will always be at a disadvantage to those who can.
Unfortunately some of us have to. I guess I should charge more so I can buy fuel cells. Although for a one man operation I think I did pretty well for a light season.
 
1 - 20 of 25 Posts
Top