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Gross needed for another route?

Discussion in 'Business Fundamentals' started by Jguck25, Sep 25, 2014.

  1. Jguck25

    Jguck25 Senior Member
    Messages: 594

    What does everything think the gross needed for a second plow route is? I may be adding a third truck to a route that has enough work to justify putting a truck on it, and I know I will make money on it, but I was curious about everyone elses opinions from people who have been there and done that before.

    I wont get too specific but it will be three small commercial lots right around 6k a piece seasonal, one salt per storm included (storm is anything plowable) anything less than an inch gets billed separately for salt, and then one private road in a gated community. the road would be about 90 per plow, and salt at the end of the storm for another 75.

    Problem is, I live in a rural area and I have to travel to where the work is in the summer. There are only 3k people in my town. So I have all my work in my hometown, and then a town 20 minutes to the west, and then a town 20 minutes to my east. Reason I do this is because my town does not have the people to support the amount of work I need, so in the summer I mow one day in my hometown, one day east, and one day west. the other three working days of the week I do landscaping jobs.

    Right now I have two routes for plowing, One in my hometown, and one in the town to the west. I just started the landsacping to the east this year, and that is where the plowing is coming from.

    I already have the truck, just need to buy another salter and find an employee to drive the truck. (my biggest worry).

    So basically, what do you guys need to see for a gross from one truck and plow driver to justify the expansion?
  2. Jguck25

    Jguck25 Senior Member
    Messages: 594

    Wow I'm surprised.. is roughly 18-19.5k gross enough to send another truck/driver annually for a plow route
  3. John_DeereGreen

    John_DeereGreen 2000 Club Member
    Messages: 2,908

    Who cares about the gross, if you're bidding it correctly.

    The real question is service time. Can you effectivly service the accounts with your current equipment? If yes, then you don't need any more. If no, then you need something that can service them.

    If you know how long it takes to complete the service, and you know your costs and margins, then you can answer if you need another one or not.
  4. TCLA

    TCLA 2000 Club Member
    Messages: 2,707

    We have a winner. Capacity it is. Like he says, if bid correctly the dollars will follow.
  5. Antlerart06

    Antlerart06 PlowSite Veteran
    Messages: 3,437

    Me I care less what I gross What counts is the net period I'm adding 6th rig to my route am I taking on more work nope I want faster turn around and shorten the Route time