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am i priced to high?

Discussion in 'Commercial Snow Removal' started by 04ram2500hd, Feb 26, 2010.

  1. 04ram2500hd

    04ram2500hd Junior Member
    from ny
    Messages: 15

    well winter is almost over and now we are geting killed with heavy wet snow. well any ways my dad just picked up a parking lot and needed my help. so he gave the owner the hourly rate of 250hr for 2 trucks and he said ok. well 2 weeks a go we got 4inches and charged 200 for the first storm he said no problem lot looks great well yesterday we got about a foot of heavy wet snow so we pushed every 3 to 4 inches so we didnt kill our trucks. well after the storm was done my dad went in to get paid and the owner said thats the best job anyone did in 10 yrs well after him saying how good of a job ect my dad gives him a price of 350 and said that was to much and wanted us to plow only once and gave us 250 and said he will give us the rest latter thats fine well we went back today to plow because we are geting 10 to 15 inches. and what do you know he has some else plowing the lot and told us to shove it for the other 100 this is why i do driveways no pay no plow sorry for the long post im just pissed i busted my @ss to make sure the lot was 100% for when they opened in the moring and this is what i get well hats off to all of you that do commercial work and deal with this all of the time.
  2. Brant'sLawnCare

    Brant'sLawnCare PlowSite.com Addict
    Messages: 1,756

    Well, sounds like you needed a written contract with the guy. But don't worry, sounds like this guy wasn't willing to pay for a good service. And he isn't worth having as a customer. Oh well, just chalk it up as a lesson learned. We all learn the hard way.

    As far as your prices go, that would never fly in my area. But it may be alright in yours.
  3. 04ram2500hd

    04ram2500hd Junior Member
    from ny
    Messages: 15

    well i should be glad im not a lowballer lol i cant belive that some places get plowed out around here for $ 40 a storm :laughing: i cant see how people are making money when you charge so little? all i know i didnt spend 30k to make $200 a storm well thats just me i guess i will stick to driveways never had a problem with my prices.
  4. FisherVMan

    FisherVMan Senior Member
    Messages: 706

    Yea I think you gotta have this all in writing before it comes up [and its going to] as if he doesnt understand the logic behind you plowing it every 4" while charging by the hour your going to have a problem? By the same token if you had plowed it every 6-8" if its a paved lot and been down 50% on time he may have paid it???? You almost gotta look at these from both sides as it would be easy for all of us to just say to the customer I want $300 hr and I will let you know how long it took when its over,and I have to plow it every two inches or its toooo hard on my truck ..................... then someone with a 1975 half ton with a beat up Myers plow is going to be plowing it the next time you drive by for half of what you were asking??? Its the age old problem of you have nice equipment and are trying to charge what you feel is a profit making arrangement for you and your Dad . However the guy with the 75 truck that is hungry is alwasy going to be lurking in the shadows waiting to dart in the minute you are not looking??? Sorta like a bear turns to lie down from the kill and a little coyote sneeks right in and starts munching???? I cant speak for NYers but around here they seam to want to go with PRICE way ahead of QUALITY .............. is sorta like a WALMART mentality????
    Last edited: Feb 26, 2010
  5. 2COR517

    2COR517 PlowSite Fanatic
    Messages: 7,115

    If he said he would pay you, I would call him everyday asking when you can come by to get payment.
  6. vt properties

    vt properties Senior Member
    from vermont
    Messages: 194

    I have never had that problem with a commercial customer. We got 33"+ of the wettest heaviest snow I have ever had to deal with. I was geting calls all day to plow, and could hardly keep up with my route. I was charging 2x -3x my normal rate. I was called to plow a lot , small say apx 20 parking spaces, that had a solid 2' of wet snow and chest deep drifts. The owner wanted to pay $30.00 . I told him to add a zero, for 2 reasons,I was directed off route, and primarily this lot should have been hit 3x already. Anyways I had residents calling all day with the same thing. Some people just dont get it . All of my regular customers got chareged the agreed upon price of the seasonal contract. I was only charging more for unplowed deep snow , and there was a lot of them.
  7. Laszlo Almasi

    Laszlo Almasi Senior Member
    Messages: 326

    My experiance has taught me that a signed written agreement is required more often than most people realize. I always tell my customers up front what I charge for each required piece of equipment or man on the ground. If they balk it can be addressed up front prior to doing the work.

    It's always easier to walk away from a potential contract before you do any work than it is to argue afterwards. Document your work and if someone comes in and replaces you that does a sloppier job, take photos and document it. If/when you are presented with the possibly of getting back onto the job, use the information you collected to justify your price. I find educating a potential customer will work wonders for you but you must take care not to educate in a manner that person will appreciate and respect. However, if the bottom dollar is all they care about then you just need to head on down the road and concentrate on the next client.

    As for your price...it is not out of line but it all depends on your location. I think for your area it might be too high.
    Last edited: Feb 26, 2010
  8. 04ram2500hd

    04ram2500hd Junior Member
    from ny
    Messages: 15

    well guys thanks for alll the replys i droped this account and im glad we just got over a foot of snow and power been out for 4 days now any ways the owner got some lowballer to do his lot and it looked like crap lol well im happy i just made a crap load of money this storm so in the end i made out you guys can keep the big lots i will stick to drive ways.
  9. hoskm01

    hoskm01 Senior Member
    from AZ
    Messages: 475

    Second'd! Verbal agreements are still legally enforceable contracts (albeit harder to prove). Lien him if he doesn't pay.

    NICHOLS LANDSCA PlowSite Veteran
    Messages: 4,362

    I sure wish I could charge that kind of hourly around here
  11. Snow Picasso

    Snow Picasso Senior Member
    Messages: 250

    That's right ....He said he would pay you! You had a verbal contract with this guy! Slap a lien on his property including expenses and lost money from the revenue from new storms! How would he prove that you did not have an agreement to plow his lot. There is no way anyone would just show up to plow a lot twice with out having some sort of agreement to do so! Can you prove he paid you the first time? If so make his life miserable like he's making yours! or you could get yourself a .22 cal pellet gun for $100 and take out his windows! lol
  12. wideout

    wideout Senior Member
    from iowa
    Messages: 727

    he said that was fine so he should definitely pay up but $250 an hour for two trucks seems way overpriced! But maybe in your area that's the going rate around here they would laugh at us!
  13. hoskm01

    hoskm01 Senior Member
    from AZ
    Messages: 475

    you might be priced TOO high.