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Is this NUTS????

Discussion in 'Commercial Snow Removal' started by ZamboniHDB, Oct 30, 2006.

  1. ZamboniHDB

    ZamboniHDB Senior Member
    Messages: 338

    I had an insider at Menards slide me a contract for a Northwest Suburban location. For you non Midwest members, it's like a Home Depot or Lowe's, but they are only across the Midwest region. With wining bids like these, I'm glad I've never had an interest in any of the stores.

    The contractor is a pretty large operation and a SIMA member.

    Menards Contract excerpt;
    Snow plowing shall commence upon snow accumulations of one inch or more per snow fall from parking lot, loading and storage sites, sidewalks, and outside yard. The contractor MUST use Menards salt and sand to remove ice from sidewalks, loading and storage sites, and the front store entrance and exit, and outside yard and the parking lot. Salt and sand will be applied when authorized by the Menards store General Manager, utilizing the Menards salt and sand.

    Winning Bid Pricing:

    1 Ton/5 Yard Dump Truck $60.00/hr
    10 Yard Dump Truck $70.00/hr
    Skid Steer $75.00/hr
    Loader w/ 10ft Pusher $87.00/hr

    Salt & Sand Spreader
    Labor & Equipment Only $59.50/hr

    What's your input?
  2. ZamboniHDB

    ZamboniHDB Senior Member
    Messages: 338

    Location Photo

  3. NASConst_land

    NASConst_land Member
    Messages: 54

    We have a Menards contract in Northwest Ohio and it is set up the same way. Id assume that you think these prices are low. We are in the same ballpark, not quite that low but close.

    We originally were alot higher, and we had a discussion with the managers. What they expect will make up for the low hourly rates. If it is a day time storm they want 2 trucks there all day threw the storm. If it is done snowing at 5 in the morning they want it cleared by 7 as many trucks as you want.

    We are not a huge company but decent size and we have a few trucks running around. From our point is, you can get away with sticking 2 trucks there for 12 hours and have them tied up that whole time from open to close. So say $70.00 and hour with 24 truck hours.. you are at 1680.00 not to bad.

    We also have worked out a deal that works out for us and them as well. We do a partial payment for In-Store Credit. Some guys would hate this.. but for us its not to bad. After mowing, and fertilizing and stuff we have over 12 grand of instore credit built up. Take enough cash to pay the labor and the rest is instore credit. Well we use it all the time. Just a matter of opinion i guess, its worked out for us seeing as me and the other two owners of the company are building homes, we get alot of our material there, and its money that doesnt get taxed cause it would be a "trade"

    I would say those loader and dump truck prices are a bit low. And as far as the salt goes, ya its a pain in the rear.. but if u have a truck just to do that. Not to bad. We salt the menards here with a 16 foot flat bed they slide 3 pallets of salt on.. we usually only use 2 and they tell us to keep the rest. You just need to have a good relationship with the general managers to make something like this work.
  4. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    Anyone using the bartering system should be aware of the IRS reporting and taxing of this system: http://www.irs.gov/businesses/small/article/0,,id=113437,00.html
  5. NASConst_land

    NASConst_land Member
    Messages: 54

    Menards had told us that since we would have very few transactions 10-11 that we would not be given a 1099, and we had them sign documents saying we would not be given a 1099. So we shall see come tax time.
  6. LLM Ann Arbor

    LLM Ann Arbor Senior Member
    Messages: 876

    I dont think that 12000 in store credit deals gonna get you out of jail....And because they certainly will be claiming it on their taxes, and you are talking about it here, Id suggest you claim it on yours. 1099 or not. I find it hard to believe a big company like that would use contractors and not issue one.

    I dont want to get the pricing/locale gods mad at me so alls I will say is I get as much as a subcontractor with a 7.5 blade and a half ton as the winning bid on that job with a dump and more than likely a 9.5 blade.

    So you know what my my answer is.

    Like I keep saying. We are all gonna be working for free soon witgh those kinda rates.

    Upside is I just got a call for an estimate/bid and they flat out told me that the last guy was very reasonably priced but the service blew.

    So....there is hope.
    Last edited: Oct 30, 2006
  7. Rcgm

    Rcgm Senior Member
    Messages: 613

    I would say good luck with Menards not giving you a 1099.They are a huge company and they will claim it on there taxes. How you gonna win that one in court? Um judge they paid us and said they were not going to send us a 1099.I guess they might not send you one if its under 600 dollars.But expect to get that 1099 before january 31st

  8. NASConst_land

    NASConst_land Member
    Messages: 54

    Not worried about winning anything in court.. if they send us a 1099 then they do and we claim it on our taxes.. No big deal.. we just dont do work for them next season. I was just commenting on what we have talked about with the GM's here in town and what was final agreement, if they break the agreement then theres nothing we can do. A contract may as well be as good as a piece of toliet paper anymore and i know that.

    And those prices are low, What gets me is the $87.00 Dollars per hour with a loader and pusher.
  9. Superior L & L

    Superior L & L PlowSite Veteran
    from MI
    Messages: 3,041

    $140.00 per hour for two trucks, Id take that. Since your getting it for twelve hours all though a storm. Plus you will not be driving across town to the next account and you will have 100% billable time.
    Loader price???????? silly silly silly