Bagged salt revenue

Discussion in 'Business Fundamentals' started by 94gt331, Jan 10, 2020.

  1. 94gt331

    94gt331 Senior Member
    from usa
    Messages: 317

    Just curious how you guys charge per bagged salt.
    I started charging a application rate plus a few dollars more per bag that what i paid for it. Profit for salting with bags seem to be better now that i went this route.
    Example for my last salt trip, i used 62 bags for my salt run.
    I billed out $1410 so that average at $22 per bag.
    I pay $4.75 per bag so my cost was $311 for salt.

    Billed out $1410
    Salt and fuel 360

    I had 4 hours doing this run.
    We are in central pa.
    Are these prices in line with you guys.
    To low? To high? Thoughts thank you
     
    Kinport likes this.
  2. NBRam1500

    NBRam1500 Senior Member
    Messages: 125

    Seems a bit high , but if your customers don't complain good for you.

    Based on the info you provided , we would be in the $1000-$1100 range.
    And at that our prices are high for salt application.

    Go buy bulk salt. Get some good containers to store it in. We pay $72 a Ton for Bulk salt
     
  3. OP
    OP
    94gt331

    94gt331 Senior Member
    from usa
    Messages: 317

    oops i made a mistake i had 2 plows in there, that took my salt run to $1265÷62 bags average $20 per bag
     
  4. NBRam1500

    NBRam1500 Senior Member
    Messages: 125

    We fill hopper with 5 Gallon buckets to keep track of how much we use on each site.

    Just started using bulk salt from local mine. Can go load up the dump trailer for less than $100 , park it in the garage.

    Proffitt margins much better
     
    512high likes this.
  5. NBRam1500

    NBRam1500 Senior Member
    Messages: 125

    Are you buying 10kg bags?
     
  6. NBRam1500

    NBRam1500 Senior Member
    Messages: 125

    10kg bags here 3.99
    907 kg in ton

    90 bags would run us. $360
    Plus opening and discarding bags
    Bulk salt alot better
     
  7. OP
    OP
    94gt331

    94gt331 Senior Member
    from usa
    Messages: 317

    Yea bulk is the best way to go im sure.
    Im happy with the bags, its more, but very easy for us.
     
  8. Kinport

    Kinport Junior Member
    Messages: 22

    I wish I was getting $20 a bag. We use bagged salt in our broadcast spreaders- I’m only getting about $14 per bag (40lb bag @ $4 a bag, straight rock salt). It’s still profitable, but I sure wouldn’t mind $20 a bag.

    Do you get any complaints from customers about your price? Or, do you have customers who closely monitor you and only allow you to put salt down when they ok it?
     
  9. OP
    OP
    94gt331

    94gt331 Senior Member
    from usa
    Messages: 317

    Our customers rarely complain, we dont over salt and we salt everytime there is a coating of snow to keep our sites safe and clear.

    Like i said i use to charge per bag, but how i charge now is each site i charge a application rate plus 9 per bag
    Example my locations are smaller sites other than a few large sites.
    This would be a normal smaller site
    Application rate $25 thats what i charge for each service plus
    $9 per bag of salt
    So a 3 bag lot would be $52 per salt.

    I billed out 1265 for 18 sites, so it varies for each site.
     
  10. m_ice

    m_ice PlowSite.com Addict
    Messages: 1,917

    From the sounds of it these are small lots that you can probably get away with a minimum salt charge. Personally I wouldn't salt a lot for $52. Can you squeeze $75 out of these really small lots?
     
    leigh likes this.
  11. leigh

    leigh PlowSite Veteran
    from CT
    Messages: 3,705

    X2
    I never mention amount of salt being used, it varies by storm. Just have a set price, sharing the bags used info is just more complicated .You put down heavy one storm ,next storm may be a lite one, it balances out without all the math ! Gotta find a source of bulk. Even if you can pick up a yard at a time and put it in bags or buckets yourself.I did that when I was starting out. Kept a yard on the patio with a tarp over it.
     
  12. OP
    OP
    94gt331

    94gt331 Senior Member
    from usa
    Messages: 317

    I thought about charging a bit more. I have a hard time charging that much for a 3 bag salt, figured though alot of other guys would
     
  13. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 10,323

    I agree, MMM minimums make money.
    I manage a property where one of the things that’s the hardest thing to do out here,is find someone to fill their water softener with salt.
    I put a skid in the basement and deliver once a year. On my rounds if it needs salt 30 second job. Time and material+20% on the delivery.
     
    94gt331 and 512high like this.
  14. Treeboy

    Treeboy Junior Member
    Messages: 4

    Its hard to make money with out a minimum. Even if you have acounts right next door to each other thats got to b a win for you. Your overall numbers are about what i would charge and your always going to make money. I dont know how many of these accounts are below what you would set as a minimum of 75$ but if you run the numbers you might b leaving 150-200 per event. And that really adds up.
     
    94gt331 likes this.