Hourly Rate

Discussion in 'Bidding & Estimating' started by JP Tank, Sep 9, 2019.

  1. OP
    OP
    JP Tank

    JP Tank Junior Member
    Messages: 27

    Oh ok nice so that will be something I have ask the owner is if there is a required amount of time we have to be there. We have other jobs but this will be a priority job. We have a 1 inch trigger. So I'm guessing that we start at 1" and every time there is another inch accumulated even in the same storm, we would have to start again.?.? With that big of a lot, we would really be plowing from the time it is at 1 inch until snow is done because it may be 1" deep again by the time we finish the first push.
     
    Drock78 likes this.
  2. OP
    OP
    JP Tank

    JP Tank Junior Member
    Messages: 27

    Yes I was going to send out mailers to residentials in a few weeks depending on how much commercial I get. I think Residential could be more profitable but more of a headache for logistics.
     
  3. FourDiamond

    FourDiamond Senior Member
    Messages: 172

    Our gross gross revenue from these two locations are 100,000+ per season, so you can plow your $25.00 driveways all winter.
     
  4. cjames808

    cjames808 Senior Member
    Messages: 396

    Every year a there is handful of the exact same threads, wants everyone’s pricing and costs and charges etc. This is a public forum and my business feeds many members of my family. Customers, competitors and possible no good nicks have access here. Google picks up threads on Plowsite.

    I did give you very helpful accurate pricing from my area Metro Milwaukee. And guess what my prices went up this year. Salt is permanently more and insurance guys musta got into the meths cause our rates literally go up up up.
     
  5. cjames808

    cjames808 Senior Member
    Messages: 396

    This is going off into the rhubarbs.
     
  6. OP
    OP
    JP Tank

    JP Tank Junior Member
    Messages: 27

    Yes you did, you gave one of the most helpful answers so far!
    And I understand this is sensitive business for everyone. It's our livelihood.
     
  7. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 9,532

    Not my point, i dont do $25 drives either.
     
  8. Hydromaster

    Hydromaster PlowSite.com Addict
    Messages: 1,321






    The average rate of return on direct mail campaigns is generally 2 percent, according to JWM Business Services; in a campaign involving 100 pieces of mail, two to four people can be
    expected to respond.

    Are you going to deal with residential drives or commercial properties?
    I thought you were involved in commercial properties.
    you want to contact the commercial properties personally .
    Jmo.

    I’ve never had a commercial property want my numbers on what my operating costs are for my equipment per hour.

    How many acres can you clear per hour with said machine unless you have operated it and you’re proficient how would you know what this number is ?

    And then one day if you drive a little faster and you plow the lot and half the time won’t they wonder about the difference in the rate you’re charging to perform the same work?


    What about your salt cost? what’s your cost per ton applyed per hr?

    That’s why you have to figure out what your numbers are .
    you could bid but what the average company in your area is charging and you could still lose money .
    thats why nobody is giving you their numbers .

    You need sit down with a sharp pencil and figure it out for yourself, if this is going to be a profitable endever or not.

    Ps

    Do you have experienced operators lined up?
     
    Last edited: Sep 11, 2019
  9. OP
    OP
    JP Tank

    JP Tank Junior Member
    Messages: 27

    I'm at 7% response rate right now on direct mails for commercial properties.
    Why can't I do both commercials and residentials?
    No one has asked me what my operating costs are... The guy wants the rate I'm charging for each piece.

    I am still trying to find a good supplier for salt.
     
  10. Hydromaster

    Hydromaster PlowSite.com Addict
    Messages: 1,321


    You can plow Commercial or residential what ever you want .
    7% is extremely high, good for you.
    How many of them did you actually get to sign your contract ?


    Are you plowing these drives by the minute, hour, per-push or seasonal?
    What is your minimum rate ?

    As others have said and I will say again ,
    I never bid a job by the hour
    I bid by the job For commercial amd my residential is seasonal



    We could have 4 loaders all equipped the same .
    With four different operators in the cab.
    Send them all to plow the same lot with the same 3 inches of snow each of them will do it in a different time.

    Or insurance costs your employer cost your Workmen’s Comp. all of your cost of doing business are going to be different from mine.


    we could give you our numbers and you could either be high , low and lose money or you could be in the middle .
    that’s why it’s best to always figure out your own costs.
    were not ragging on you were just being honest.


    Yes ,there are industry standards but they vary.

    I would never share what’s going on behind the curtain with my business to another business owner because he will share your information with the other contractors
     
  11. OP
    OP
    JP Tank

    JP Tank Junior Member
    Messages: 27

    I'm still bidding, so I don't know my conversion rate of those who have responded to the direct mailer yet. I will say that it wasn't really a direct mailer, it was a letter that I typed up and mailed to them. A more personalized letter than a post card.

    The drives I am going to try for $45 per push and then tier up depending on accumulation.
    Not sure if I should include shoveling with that or not.
     
  12. Hydromaster

    Hydromaster PlowSite.com Addict
    Messages: 1,321

    What happens when you try to get them on a per push plan is they won’t want you to come unless there’s X amount of snow ,below this # they will take care of it themselves or they will only call you when there’s a big storm.

    Try selling them on a seasonal contract which is like having snow insurance .

    Unlimited plowing from November to April with the storm clause And of coarse salt is extra.

    The sidewalk from the house to the garage is extra and so would the city sidewalk.
    do your best to avoid getting out of the truck think about hireing one or two guys that do nothing but sidewalks for you

    Figure out what the average snowfall and the average snow events per year .
    To get your numbers.

    And then if it doesn’t snow and your profit margin will increase.

    but that’s just how I do residentials .

    Good luck
     
  13. OP
    OP
    JP Tank

    JP Tank Junior Member
    Messages: 27

    355,993sf Divided by 32,000 per hour = 11.125 for one truck to do the whole job... Divided by 4 trucks = 2.79 hours

    I realize that 32,000 sf per hour per truck is slow
     
  14. OP
    OP
    JP Tank

    JP Tank Junior Member
    Messages: 27

    Awesome! Thank you