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cost of operation

Discussion in 'Commercial Snow Removal' started by npswi, Apr 16, 2003.

  1. npswi

    npswi Junior Member
    Messages: 16

    I live in Northern Wi. My local township still plows snow on a yearly contract basis. Ususally they charge about $120.00 per year for a 600' long driveway w/ turnaround. Averaging about 10 pushes a year.

    At our town annual meeting last week they spoke about getting out of plowing. Yes, I know I can also force them out by bringing up a no compete w/ business angle. Anyway, I have told them that they are not even breaking even on costs if considering all the factors. This led to a motion to look into what it cost them to operate equipment. i.e Cat End-Loader, 3 Dump trucks, and a Chevy 3/4 ton w/ Boss straight plow.

    My question is on how to figure these costs. Does anyone know of a resource where equipment cost of operation is broken down? Of course, I would them have to add wages, insurance, and so on.

    Your help would be great......
  2. GeoffD

    GeoffD PlowSite.com Veteran
    Messages: 2,266

    Here is a quick run down on cost: At least in Maine

    3 Single Axel Dump trucks
    With plow, wing, required dot lighting, sander of some sourt.

    1 truck cost about 100,000 set up

    So 300,000 before volume discounts

    Cat loader, depending on the size between 100 and 150K

    3/4 ton pick up truck 30K

    Sand/ salt sorage building a shop area at least 500K closer to 1 million to do it right.


    4 guys full time

    1. Foreman or Director 40 37K before ot paid at 16 dollars an hour

    3 Equipment operators say 13 dollars each 28K each before OT 82K for all 3

    Overtime account figure 20K for 4 guys.

    Shop equipment: 50K

    Fuel say 15,000 gallons a year.

    Utilities ???

    Insurance and retirement, depends on what you guys want to off, most states have programs for towns.

    So very rough and very basic:

    1,649,000 to 2 million a year.

    Your town would need a bond

  3. GeoffD

    GeoffD PlowSite.com Veteran
    Messages: 2,266


    read that all wrong. Thought you guys were hiring out someone, to do your road plowing.

    Kinda hard to figure out operating cost with out know you market.