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Deicing and profitability with a seasonal account

Discussion in 'Business Fundamentals' started by StonewallFarms, Dec 16, 2010.

  1. StonewallFarms

    StonewallFarms Member
    Messages: 73

    Hey guys, i have another question for you, i have looked at a bunch of pro's and cons through all the other threads on here and Im still stumped.

    I have a commercial seasonal contract on a property. Originally I was planning on using a sand/salt mix i get from my local gravel pit, Approx $40/ton delivered. I have used this in the past when i was strictly an on call sanding service, never had any complaints. and the cost of the material was certainly low

    This year now that I have a seasonal contract I'm trying to keep my profit margins as high as possible. I figured after all the hype id check out the pretreated salt. Its running around $120/ton here. While straight salt is running at $70/ton

    I have talked to many guys some old school some new and they all have valid points on what product is the best. But at the end of the day we are all out here to make a profit and we are talking about an $80/ton difference in price here. using either product im still making a profit, but should i aim towards the lower profit margin with the treated, go middle of the road with straight salt, or go cheap and do the mix.

    thanks for your help.. and lets hope New England gets some snow this weekend!