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Heres a Question for those in the Billing Dept..

Discussion in 'Business Fundamentals' started by Silverstreak, Feb 4, 2016.

  1. Silverstreak

    Silverstreak Senior Member
    Messages: 168

    Alrighty, before i explain how i have always interpreted this and billed this type of site i would like to see what some of you come up with as a total; unfortunately am having problems with my "prime" contractor who says my bills are wrong (normally id ask the person who bid the jobs originally but he left the company and it is the secretary telling me this.. and this is the first time these jobs have been billed for a snow total over 10 & 12" respectively)

    I only need to figure out the price to charge for plowing according to these worksheets for the two jobs below (dont worry about the walks, salt etc)

    Lets say 20.5" of snow fell: give me the price for "plow entire lot" on the big job (job 1) & "plow" on the small job (job 2)


    Last edited: Feb 4, 2016
  2. 1olddogtwo

    1olddogtwo PlowSite Fanatic
    Messages: 12,174

    It's early for me, and I need coffee

    I would say it's ur 12 price plus the per inch after 12.

    Those other lines shouldnt be filled in, it confuses the bill.
    Last edited: Feb 4, 2016
  3. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    On the way.

    Hard to read what you have,
  4. Landcare - Mont

    Landcare - Mont Senior Member
    Messages: 351

    Wow, that looks complicated. Glad we're 100 percent seasonal. Good luck with the math and the discussions with your customers.
  5. JimMarshall

    JimMarshall Senior Member
    from NW PA
    Messages: 786

    The way my math works for 20.5 inches of snow I'm seeing $2,760 for job 1 and $5,985 for #2
  6. chevyhauler

    chevyhauler Senior Member
    Messages: 152

    X2 on confusion.
    although I am sitting with a coffee. I would think the highest inch amount plus the "each additional" inch $$.

    my by the storm accounts look like 1/2 of your simpler bill
    Don't know why (I suppose there is a reason) for a separate column for plowing and shoveling. If it's a 7" storm, wouldn't u still be doing both?
    Also, once I go over 12", it is a "Blizzard Clause" The $$ charged is at my discretion depending on the quantity of snow, weight of snow and duration of storm. We don't get of those around here (maybe one every couple of years) so its really easy to say, we got 15" of snow...so I added the 12" and the 3".
  7. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 5,782

    I woke up with a headache and just about every commuter had their high beams on during my lot checks, so I am going back to bed...$6635, $3096 but if I were the customer I would argue too cause headache.
  8. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 13,256

    I'm not even going to attempt to determine the actual charge, but personally I'd tell you to shove it if you tried billing me like that.

    Second, the bottom of the second pic says it will be plowed continually every 2-3". So why in God's green earth do you have any pricing over and above 2-3"?

    First pic....does that mean it is $350\inch, so 20" would be $7,000? Or does it mean $350 plus some magical per inch price that doesn't seem to be listed?

    Second pic....what does 12"+ (per inch) mean?

    Last question: Does it really take you 33% longer to plow an additional 2" of snow?
    Last edited: Feb 4, 2016
  9. Freshwater

    Freshwater PlowSite.com Addict
    Messages: 1,207

    Bid at round numbers man, good grief!!!! I add it up in a couple hours. Final numbers will depend on how it was plowed. Did all the snow fall and got plowed once? Or did it get plowed continuously at 3"?
  10. ponyboy

    ponyboy PlowSite.com Addict
    Messages: 1,104

    Should be getting billed for max inched 10and one was 12
    Then add up the extra inches u said 20.5 so the difference times the per inch price add that to the 12 inch price will do math later but that how've done it
  11. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 5,782

    So many different ways to do this calculation with different answers...
    The cheapest of which would be $6110,$3096
  12. oarwhat

    oarwhat Senior Member
    Messages: 166

    I don't bill that way but it's not complicated. #1 $2435 + 10 x $350 = $5935
    #2 $ 1496 + 8 x $158 = $2760

    DID I WIN???
    Last edited: Feb 4, 2016
  13. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 13,256

    Had my coffee........Jamaica Blue Mountain..............and I still can't figure it oot.
  14. JimMarshall

    JimMarshall Senior Member
    from NW PA
    Messages: 786

    Mark, there are a few NSPs that price this way, it's by the storm, which is defined (by them) as continual snowfall with less than 2 hours stoppage. If the snow lasts more than 24 hours, the storm total states over at hour 24....if you get 3 inches, the snow stops for an hour and 50 minutes then you get 2 more inches, you would bill the 4-6. If the snow had stopped for 2 hours 1 minute, you would bill the 2-4 and the 0-2 figure both.

    The one NSP that I am willing to work for prices some of its sites like this - you bill the per inch charge for each inch in excess of the highest tier. So for the big lot you would bill 8.01-10 for $2435 plus 350/inch for the 10 inches in excess of that tier (one could argue 11 but personally I would bill 10) so you would have $2435+$3500= $5,935 (math in my head was wrong the first time)

    The second site, the way I read that now that I look at it again, if you get 12+ you bill by the inch, not just the excess, so 20 inches X $158 = 3,160
  15. Freshwater

    Freshwater PlowSite.com Addict
    Messages: 1,207

    Ok, guys have already done the math, or can do it with more info. After looking closer we really need to know how it was plowed. If plowed every 3or4 inches was it salted each time? Full or partial app? We're sidewalks done each time? Plowed all at once 1 time? Really need more info to give you an exact billing number.
    The tiered pricing is fine, though I'd bury the walks price into the lot price for one nice set of whole round numbers. I'd also do away with the partial pricing, if I go give you service your getting serviced and billed.
  16. JimMarshall

    JimMarshall Senior Member
    from NW PA
    Messages: 786

    With pricing like this it doesn't matter how many times it was serviced.
  17. Freshwater

    Freshwater PlowSite.com Addict
    Messages: 1,207

    It's does Jim. Here's the break down.
    I did numbers for all services in contract, I calculated at 20".
    Per push I went by 5 plows at 4".
    Lot 1, salted with each service, 4 partial 1 full salt, and dock salted each time plowed. $9225....... price with 1 salt at end $7185.......
    Price per event, plowed and salted in any order but billed based on what fell.

    Lot 2, per push same 20" and 5 plows.
    Salt each time $5490.....
    Salt once at end $3870.......

    Per event plowed and salted in any order, billed based on what fell. $4046.
  18. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 9,883


    a 2-3" trigger, you should never be plowing 5" 0r 20"
    as you would be plowing every time there is 2-3".

    This per push not incremental.

    you charge X to clear the lot once 2-3" has acclimated.

    who cares what some NSP wants.

    Does the op have a signed contract with the #'s on it or are we
    writing the contract as we go?
  19. Freshwater

    Freshwater PlowSite.com Addict
    Messages: 1,207

    Last superbowl Sunday we got 16.5 inches. I had 4 business closed on sun that stayed closed on Mon (called me sun). I plowed all 4 Mon night 16+ inches all at once. Wish I could have plowed my whole route once, with the winds plowing multiple times was worthless. To me plowing over and over is to keep business open and accessible. There's a place for the higher tier pricing in the contract.

    Tiers should be every 4-6 inches, not every 2 inches.
    Last edited: Feb 4, 2016
  20. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 9,883

    so riddle me this.

    at 2-3" trigger you charge x.
    You charged how mulch to push the 16" all at once?
    Which took you x times longer that if you plowed it 4-5 times at 3".
    remember they were closed so you didn't have to do your best , just remove the bulk.
    time management. equipment management.

    second part of the riddle,
    Why would the business want any amount over 3" on the lot when the doors are open? You would never be pushing anything over 3" as long as they are open.

    so the incremental could only come in to effect when they are closed and then your going to wait for 16" , 36" or whatever to be on the ground before you clear the lot , this is hard on equipment. and and it takes mulch longer do do.

    the whole tier thing is great for cold calls wanting service after a storm.
    Last edited: Feb 4, 2016