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3 commercial storage lots. Help me estimate please?

Discussion in 'Bidding & Estimating' started by JazyT, Nov 24, 2009.

  1. JazyT

    JazyT Junior Member
    Messages: 29

    I have an offer to sub 3 commercial storage unit lots. Push only, the entire paved areas. Wish a possibility of salting occasionally depending on customer request. Contractor claims it should be an average 8-9 hour push for all 3 lots. They are all within 7 miles of each other in a triangular pattern.
    Problem is he's only offering 450 a push, which breaks it down to 50 an hour.
    Seems to me that for a 3/4 ton truck with essentially an 8.5 blade when you factor in the wings, it's a rather lowball price.
    I'm trying to figure if this is even worth entertaining as I already mentioned the price and he states the price is pretty fair assuming that after a few pushes I get familiar enough with the lots to be able to cut it down a couple of hours.
    Considering fuel, insurance, truck payment and maintenance, incidentals etc, it seems kinda low to me. What do you guys think?
    This is in Illinois, NW burbs of Chicago.

    Here are the links to maps of the sites. Any help in a fair price estimate would be greatly appreciated.



  2. TPC Services

    TPC Services Senior Member
    Messages: 875

    there all the same picture !!!!
  3. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

    you can make more $ subbing for that kind of $. Only U know your costs. By you even asking this ?, I think you know the answer...

    Good luck
  4. JazyT

    JazyT Junior Member
    Messages: 29

  5. TremblaySNOW

    TremblaySNOW Senior Member
    Messages: 358

    8-9hrs I'd say 55-60$ an hr + GST so a 9 hr run would be $540.00 + GST
    But thats just me :salutepayup
  6. Dissociative

    Dissociative 2000 Club Member
    Messages: 2,066


    gas stop time?
  7. Bajak

    Bajak Senior Member
    Messages: 999

    Soon in Ontario we will have to stop 8% more.:laughing:

    It's our Goods and Service Tax.tymusic
  8. Plow King!!

    Plow King!! Junior Member
    Messages: 1

    Meh, $600 a push would be more like it, and you may have (pile) storage concerns, as those places are typically 100% fenced and drive areas are tight to begin with. You get a few decent events, and you may have a problem.
  9. scottL

    scottL PlowSite.com Addict
    Messages: 1,613

    7 hours with wings.
    The question is;
    1) How close to the units do they want it cleared??? Do you need to snow blow away from the units.
    2) What is the plow trigger and how often? If they tink $450 per storm they are nuts.

    Storage units are cheap.
  10. TremblaySNOW

    TremblaySNOW Senior Member
    Messages: 358

    Canadia Tax:laughing:
  11. snocrete

    snocrete Banned
    Messages: 2,862

  12. Wayne Volz

    Wayne Volz Senior Member
    Messages: 694

    Why is the customer setting the price and time to plow?

    Who's running your business? Sounds like they think they are in the snow & ice management business not the rental business. We all run into this, I say maybe the best thing to do is walk away unless you know your costs per hour and you know your time to complete the job. Something to consider is what if you get the job completed in less time? Does that mean next year they tell you the job goes for less. RUN, RUN, Run.

    I bet you can not go to them and tell them what to charge for their storage units or that you want a discount because you are only going to use half the space. Sounds like a crazy analogy, but in reality he is setting your pricing and your profitability. You are the Owner, not him. If you don't take care of your business, who will.

    Calculate your costs per hour of operation and determine your break-even point. Not that you will work for break-even money, but at least you won't under-sell yourself.

    Good luck and have a Happy Thanksgiving.
  13. snocrete

    snocrete Banned
    Messages: 2,862

    I think this guy is working as a sub for the company who holds the contract for snow removal at these 3 places...?...?.....
  14. gkp

    gkp Member
    Messages: 42

    I speak from experience....... I own units just like this and I plow them........ 30 inches and you will not know what to do with all tat snow you have been pushing down those long tight lanes....... u will NEED a SS. I bring one out every 4 or 5 storms....... not to mention all the bitching you will get because you could not get close enough to the unit doors so they all freeze up do to melting and refreezing.... I would only consider them for very good money...
  15. Wayne Volz

    Wayne Volz Senior Member
    Messages: 694

    I think u missed my point

    I am not a sub, never have been. We sell our own work. My whole point was that we all need to price our jobs based on our own company's individual overhead and expenses. In reading the original post the rental place was setting the price and time for the job. I don't know about you guys, but we price our jobs ourselves, not our customers.

    Other than that, we walk away. I don't price my customer's goods and services and we don't work for people that try to price ours.

    That was my point. BTW - We do not work as a sub because we can sell our own work and do not want to leave the profit in the middle for the contractor selling the service. We do hire subs because some guys are content to just do the work without the hassle of selling, billing and collection the money.

    It's not wrong or right, it's what works best for your company.
  16. snocrete

    snocrete Banned
    Messages: 2,862

    What is your point anyway, that you have never had to sub because you are such a genius?......and if you go back and reread the OP's original post, he states "Contractor claims it should be an average 8-9 hour push for all 3 lots."
  17. Wayne Volz

    Wayne Volz Senior Member
    Messages: 694

    What the heck are you talking about?

    Why would you make the comment that I must think I am a genius because I don't "sub?" What does that have to do with anything. I did not in my post, nor would I ever, criticize anyone for subbing or being a sub. I thought my post was pretty clear, a person should do what's best for their company.

    My point was and here's a copy of the "original post". {Contractor claims it should be an average 8-9 hour push for all 3 lots. They are all within 7 miles of each other in a triangular pattern. Problem is he's only offering 450 a push, which breaks it down to 50 an hour.}

    The way I read that post is that the guy wanting to hire a "sub" is telling the potential sub how many hours it will take (8-9) and what he is willing to pay (450.00). My only contention is that why would anyone trust someone's else's hours to complete the job and or why let them set your pricing when they have no idea what type of equipment the sub will be using (thus affecting the actual time to complete the job) and what their costs per hour of operation are.

    If that makes me a genius, so be it! I'll be a genius I guess if that's what it takes to make a smart business decision. Our clients do not set our pricing. We played that game for the first nine years we were in business and lost too much money. It will sink in for everyone at some point just like it did for us. Until then, good luck to everyone and have a profitable year.
  18. snocrete

    snocrete Banned
    Messages: 2,862

    All I was trying to say with my original post to you, was that this guy was being asked to do the work for the "contractor" that has the account, NOT the rental place......and I agree that we set the rates, not the customer, but that is not the situation here.......No big deal, lets move on.
  19. JazyT

    JazyT Junior Member
    Messages: 29

    Guys, thanks for the posts, it seems the general idea is that I should walk (or run) away. But, the actual question I had was, what is a good price for this job? I need to have a better idea of what a decent counter offer is before I approach the contractor
  20. Italiano67

    Italiano67 Senior Member
    Messages: 645

    630 per push. Hourly on events where you just keep them open and then come back to do the final push. Discuss skidsteer option for moving piles etc if snow is in the way. hourly price on that with enough in it to allow renting one for a day to do the job.