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Increase in Contracts for 2008-2009 Season

Discussion in 'Bidding & Estimating' started by Marbleman, Aug 6, 2008.

  1. Marbleman

    Marbleman Senior Member
    Messages: 149

    I am wondering how much you see contracts increasing for the upcoming season.

    The cost of salt has risen 45%. The cost of fuel is up. The cost of living is up.

    What percentage do you see yourself raising your fees for commercial work? 5% 10% 20% 30%????
  2. RLM

    RLM PlowSite.com Addict
    Messages: 1,270

    Probably none, I'll eat it this season, see what the market does. My salt bin is full (filled in March, before shorage) anyway, so will see how far that goes, still have 4 pallets of ice melt also. It'll help dampen the increases. I don't think most contractors stay up to date, they'll bid as usual, & scam there way out of it as usual. look how many contractors on here, or other websites, etc. then compare to number in US & Canada. I think it will take a full bidding cycle for it to be realized in the bids/pricing, if you raise to soon, your out of luck, you priced yourself out of the market.
  3. plowman4life

    plowman4life Senior Member
    Messages: 557

    we rasied rates 35% on commercial. 15% on residential.

    everything is crazy still. thank god fuel is coming down. im finally driving my dmax on a regular basis again nowthat diesel is 4.75 a gallon. idk about you guys in other states (or countries) but regular is $3.89 a gallon here.
  4. Sno4U

    Sno4U Senior Member
    Messages: 480

    as of 8-6-08 Diesel is about $4.45 Gas at the same as U though. We're in S.E. WI.:waving:
  5. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,394

    We are really close to these numbers. I hate to do it but I cant work just to break even. But there is always some idiot out there who works for peanuts.
  6. hikeradk

    hikeradk Senior Member
    Messages: 109


    I finished mine last week and was in the ballpark with these rate increase.
  7. Marbleman

    Marbleman Senior Member
    Messages: 149


    Anymore thoughts on increases??????
  8. MB3

    MB3 Senior Member
    Messages: 123

    Just had that though today when sending out contracts. Many landscapers around here had a tough year, with that being said, if you raise your price up, and they lowball to make up the oney they did not make this summer, I am out of a contract. I am rasing mine by $5 per hour, and that is it, I too have a storage shed fill of salt and icemelt, and another 2 pallets in the garage, after last year, I stocked up, knowing it would pass $ bucks a bag, and will wait until next year to see where the price falls. I would like to make the money, don't get me wrong, but I want to make money, and you can not do that sitting at home with no contracts because you raised your tab too high.

    Just my 2 cents, about all I have....:jester:
  9. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    10-15% raise.I don't want to raise them to much because my route is nice and tight and it will cost me more to replace one then what I would make on the increases in price.