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Detailed Formula for Per Ln Foot and Per Sq Ft Cost?

Discussion in 'Bidding & Estimating' started by AlertSnow, Dec 17, 2010.

  1. AlertSnow

    AlertSnow Member
    Messages: 87

    Hey Guys,

    I am trying to understand a way to calculate my pricing. Through research I have decided that I need to charge with the particular jobs I am doing a per linear foot or per sq foot.

    I was wondering if you business savvy guys can help me understand how to generate a formula.


    - 2011 F-250 Diesel - Monthly Payment
    - Commercial Insurance
    - Plow Insurance
    - I purchased a boss VXT this year so I would like to put that money back in my pocket obviously
    - Maintenance
    - Man hours

    Is there anything else I am missing for expenses?

    Thanks guys. Looking forward to you're input
  2. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    Your missing replacement costs, office expenses, phone, lawyer fees (to review contracts). I am assuming your not salting since nothing is listed for that. You need to figure your time in for chasing jobs, signing contracts, and everything associated with that. Don't forget the big one, Fuel. If you stake your lots, you need to add in for stakes. The list gets really long, and quite disturbing if you really think about it. Thats why when you see those cost caculaters they tell you, you need to make 150 dollars an hour just to break even.
  3. dayexco

    dayexco Senior Member
    Messages: 312

    man, i can't understand why people put plows on new trucks? lots of money? i drive my 2009...i plow with my 93 that sits 8 months a year, it doesn't care if it's got a few dings, rust spots, etc...but Rc2505 has it right, you just need to set up an exel spreadsheet to figure your costs...pretty simple really.
  4. bristolturf

    bristolturf Senior Member
    Messages: 435

    you need to first add up all your "plowing expenses" for that period. For us we add all expenses from December through March. For the sake of being simple lets say it costs me 8k to run my business for those 4 months. Once your expenses are added up, you need to figure out how many hours your working too. Say your average storm your our working 10 hours, and you have figure 14 storms per year. Thats 140 hours of billable time. You divide 8,000 by 140 and you get 57. That means for everyhour your working you need to charge $57. Then you add in your profit margin typically anywhere from 20% up to 75% so meaning you should charge 68-100/hour.

    Then if you want to start chaging per sqft you need to develop production ratios which realistically would take you about a season. That will give you time to get good times for various amounts of snow that have fallen and get an accurate number. Lets say for a 1-4inch storm its taking you 1 hour to plow 35000 sqft. you cost would then be .16 per 100 sqft or .0016/sqft.