Hi, new member and new business owner here. I will apologize now for a lengthy post, but I have been reading for hours and hours on numerous days on this site and others. I try to get as much information as I can before posting questions that have already been answered numerous times. As it turns out in this business the answers are significantly different from place to place due to an unimaginable number of variables. I could really use some advice and I’ll give as much info on my area as I can to help make things more accurate.
My Climate and Equipment ussmileyflag
I am in the Buffalo, NY area and the weather here is as severe as just about anywhere.. The snowfall varies from 80”/year to 160”/year. This past December 1-3rd 2010 we received 40 inches in 36 hours. This was one of our more significant storms in a short time period, but a foot, 2 feet or more in that time period is pretty normal. We get “lake effect” snow fall and when Lake Erie doesn’t freeze we get hammered. Snowfall predictions are impossible. I’ve talked to people around my area in an attempt to get an idea what to charge. I am trying my best to learn my actual cost per hour to run my business. I only did a few driveways last year and now am bidding on commercial and fire department lots. I am looking at getting a second or possibly a third truck in service for this season, but as it stands right now I have a 2008 Ford F250 SD (20k miles) and a 8.6 Western MVP Plus with Western 2500 tailgate salter.
My Bids
I am focusing on about 6 commercial contracts to start. Residential driveways fetch 300-400 minimum here which is the only price I have to go on for estimating. So for commercial I’m having trouble bidding. I’m really not looking for anyone on here to do my job. I really just don’t want to 1 – get sued and 2 – lose my shirt and/or my pants in this endeavor my first serious year out. Some of the PM/POs have given me an idea of what the last guy charged, but I question if they are giving me a bogus low figure to make me compete. The properties are as follows:
26,000 sqft lot. The lot is a large rectangle with the building right in the middle with businesses/pavement on all sides. Annoyance factors – most of the piling area is in the back of the lot, 2 sidewalks to clear, fire hydrant that should remain accessible and 3 separate entrances to keep open. I need to bid the plowing/salting of the lot and give separate figures for charging the sidewalks and the fire hydrant. Business hours 6am-11pm. This is a seasonal pricing bid.
40,000 sq ft lot for a church. This one has no obstructions at all, is an easy rectangle and just push everything straight ahead basically. Seems low to me, but I think maybe 45 mins to do. I’m not sure how long because I haven’t done anything this size but the lot couldn’t be easier. It’s just a matter of my cost??
36,000 sq ft total (which is 2 properties side by sideowned by same client). Both properties have lot space around 3 sides of the building and a small sidewalk that needs cleared. This one is mandatory clear by 7 or need not apply. Obviously I will need to charge a premium to dedicate service prior to 7 for this one but it closes around 5 or 6.
24,000 sq ft lot with only one small island. Half the lot in front of the building and half the lot in the back. limited piling space in the front. Sidewalk at street to clear and sidewalk in front of building. Open from 8am to 5 or 6pm.
Last one is 25,000 sq ft Fire Department which will need to remain clear 24/7 and have priority during blizzard conditions. There is a front pad spanning 3 garage bays out to the street and has limited piling area there. Rear pad for same bays and connected to a rectangular lot that is all straight plowing and no obstructions. Plenty of pile space in back. Sidewalks in front and back as well. This one concerns me for the limited piling space in front and I don’t know how to charge for basically being on call or giving them priority 24/7. This is the contract I will most likely get if I price it fairly because I am a police officer in the same town and they all know/trust me.
I am completely legit with paying taxes, insured, etc. Insurance will cost me about 2800 a year. All properties are within 5 minutes of my business address. Labor cost to start will be 15 per hour for employees. Salt will cost approx 65/ton. I was trying to guess id save about 10/hr toward maintenance of equipment for future break downs. I don’t know how to figure fuel cost… you plow slow speed but pushing heavy weight. Any advice on estimating fuel when using $4/gal price? which is what price is near here. I’m going by a figure of 28 snow events per season requiring plowing at minimum 3” and up per event. I apologize again for such a lengthy post, but I realize It’s impossible for any accurate advice without the details. I promise I wont be so long in future posts
My Climate and Equipment ussmileyflag
I am in the Buffalo, NY area and the weather here is as severe as just about anywhere.. The snowfall varies from 80”/year to 160”/year. This past December 1-3rd 2010 we received 40 inches in 36 hours. This was one of our more significant storms in a short time period, but a foot, 2 feet or more in that time period is pretty normal. We get “lake effect” snow fall and when Lake Erie doesn’t freeze we get hammered. Snowfall predictions are impossible. I’ve talked to people around my area in an attempt to get an idea what to charge. I am trying my best to learn my actual cost per hour to run my business. I only did a few driveways last year and now am bidding on commercial and fire department lots. I am looking at getting a second or possibly a third truck in service for this season, but as it stands right now I have a 2008 Ford F250 SD (20k miles) and a 8.6 Western MVP Plus with Western 2500 tailgate salter.
My Bids
I am focusing on about 6 commercial contracts to start. Residential driveways fetch 300-400 minimum here which is the only price I have to go on for estimating. So for commercial I’m having trouble bidding. I’m really not looking for anyone on here to do my job. I really just don’t want to 1 – get sued and 2 – lose my shirt and/or my pants in this endeavor my first serious year out. Some of the PM/POs have given me an idea of what the last guy charged, but I question if they are giving me a bogus low figure to make me compete. The properties are as follows:
26,000 sqft lot. The lot is a large rectangle with the building right in the middle with businesses/pavement on all sides. Annoyance factors – most of the piling area is in the back of the lot, 2 sidewalks to clear, fire hydrant that should remain accessible and 3 separate entrances to keep open. I need to bid the plowing/salting of the lot and give separate figures for charging the sidewalks and the fire hydrant. Business hours 6am-11pm. This is a seasonal pricing bid.
40,000 sq ft lot for a church. This one has no obstructions at all, is an easy rectangle and just push everything straight ahead basically. Seems low to me, but I think maybe 45 mins to do. I’m not sure how long because I haven’t done anything this size but the lot couldn’t be easier. It’s just a matter of my cost??
36,000 sq ft total (which is 2 properties side by sideowned by same client). Both properties have lot space around 3 sides of the building and a small sidewalk that needs cleared. This one is mandatory clear by 7 or need not apply. Obviously I will need to charge a premium to dedicate service prior to 7 for this one but it closes around 5 or 6.
24,000 sq ft lot with only one small island. Half the lot in front of the building and half the lot in the back. limited piling space in the front. Sidewalk at street to clear and sidewalk in front of building. Open from 8am to 5 or 6pm.
Last one is 25,000 sq ft Fire Department which will need to remain clear 24/7 and have priority during blizzard conditions. There is a front pad spanning 3 garage bays out to the street and has limited piling area there. Rear pad for same bays and connected to a rectangular lot that is all straight plowing and no obstructions. Plenty of pile space in back. Sidewalks in front and back as well. This one concerns me for the limited piling space in front and I don’t know how to charge for basically being on call or giving them priority 24/7. This is the contract I will most likely get if I price it fairly because I am a police officer in the same town and they all know/trust me.
I am completely legit with paying taxes, insured, etc. Insurance will cost me about 2800 a year. All properties are within 5 minutes of my business address. Labor cost to start will be 15 per hour for employees. Salt will cost approx 65/ton. I was trying to guess id save about 10/hr toward maintenance of equipment for future break downs. I don’t know how to figure fuel cost… you plow slow speed but pushing heavy weight. Any advice on estimating fuel when using $4/gal price? which is what price is near here. I’m going by a figure of 28 snow events per season requiring plowing at minimum 3” and up per event. I apologize again for such a lengthy post, but I realize It’s impossible for any accurate advice without the details. I promise I wont be so long in future posts