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Help With Pricing

Discussion in 'Introduce Yourself to the Community' started by ProtimeSkidder, Dec 21, 2010.

  1. ProtimeSkidder

    ProtimeSkidder Junior Member
    Messages: 1

    Im new to the forum but have been plowing snow as a subcontractor for about 6 years with a john deer skidsteer and an f250 with an 8' western. Being a sub has worked out for these past couple years but I have been having problems with the guy that employs me as a sub so I am looking to go off on my own. I understand the art of plowing and how it needs to be done, the area I need some learning in is how to bill the account. If anybody has some usefull advice as to the most affective way to bill an acocunt the advice would be appreciated. I am located in central Minnesota. Thanks guys
  2. bristolturf

    bristolturf Senior Member
    Messages: 435

    well, id recommend trying to get a good balance of accounts, meaning an equal amount of seasonal and per storm customers.

    There are a lot of variables to the billing side of things. As far as seasonal goes, if we can get them to a 2-3 year deal, we wont cap it, that way things even out over the years, however if they only want to go with a 1 year deal, we cap the snow at 48" Now with that, sometimes we will bill them seperately on salt, and sometimes its included in that seasonal total. If its included we just alot them a set amount of lbs before the salt is out.
    For example, we have a 1 acre lot, and try to average 750lbs of salt per acre. We average 12 plowing events per year, plus another 10 salt only events meaning 22 salting events. Meaning that we would use 16500lbs of salt just putting down the salt after the final plowing. That doesnt include presalting or any salting during a storm. So I would bring that number up to 22,000 lbs of salt. So if we get 60" of snow on a 48" contract those last 12" are billed seperately and if we use 25000 lbs of salt, those last 3k lbs are billed seperately.

    Per strom we either do T/M or we will use inch increments 1-3.9; 4-6.9; etc. and then salt is just billed per appx pound applied.