Looking to start a plow business! need Help with pricing

DylanVickers88

Junior Member
Hey there, im completely green when it comes to pricing... ! I need some helpful pointers and tips on pricing condos and residential properties. I'll be a one man show for the first year or two until my company hopefully develops and needs more staff. Any information or input will help guys! Im also from brantford Ontario
 

iceyman

PlowSite Fanatic
Location
e town nj
I know you have to start somewhere but maybe subbing this year and learning the ins and outs will probably be beneficial in the future
 
OP
D

DylanVickers88

Junior Member
I agree guys but it’s so difficult to say no ... I have 6 properties already lined up ..very small in size ...people looking to help
Me out basically and get me started ... 1 small condo ( 2000/month)4 monthly residential places(350-600/month each) and 2 homehardwares( which is I’m assuming he’ll give me a decent rate and not take advantage ) the person who owns the homehardwares is the one putting pressure on me to start my own thing ... either he’ll give me the work or someone else ... when I say I have no idea as to pricing that’s not completely true .. I have a generally idea and I’m pretty quick to learn ..I feel I should be able to maintain and handle these 6 properties all on my own ?? What do you think ?
Thank you very much for all you input , good or bad
 
In Ontario Liability insurance is expensive. They don't really look at how many employees you have, they look at the kind of properties you're servicing and revenues. When it comes to commercial here it gets pricey. There's no way he gets insured for under 500$ per month unless he does strictly driveways.
 

EWSplow

PlowSite Fanatic
Location
Milwaukee
In Ontario Liability insurance is expensive. They don't really look at how many employees you have, they look at the kind of properties you're servicing and revenues. When it comes to commercial here it gets pricey. There's no way he gets insured for under 500$ per month unless he does strictly driveways.
Its not based on sales?
 
Only to a point. It's a factor for sure. I'm sure it's a lot like yours. Far more risk plowing a retirement home for 5000$ for the season than plowing 30 driveways for 15000$ for the season. But it's not like there is some magic fomula where you pay a % of your sales and that's it.
 

EWSplow

PlowSite Fanatic
Location
Milwaukee
They also won't insure you if you only do snow. They want snow to be 30% of your yearly revenues or less.
I'm guessing there are companies that would insure if snow is 100% of your business. Yours may not.
I'm in a similar situation, snow is only 10% of my business. If it was 100%, I could find a company to insure, but not my current provider.
 
It's tough. I am currently going through a renewal. We get no a lot because my ratio is too high (40%), or because we don't do enough revenue. They don't want the medium sized contractor here it seems for snow.
 

EWSplow

PlowSite Fanatic
Location
Milwaukee
We don't have enough information to guess the OP'S insurance costs.
Does he have a liability policy for another business and the snow is additional revenue?
That is my case.
I still can't imagine $12,000 in liability for a one man business.
 
I hope it's cheaper for him. I recently got 1 yes, from a company my broker said they only use if there is no other options. 42000$ for the year. I have about 5-600k in revenue. I currently pay 13k with 1 bullshit lawsuit from 2018 that my insurance has said they'll fight in court.
 

iceyman

PlowSite Fanatic
Location
e town nj
I agree guys but it’s so difficult to say no ... I have 6 properties already lined up ..very small in size ...people looking to help
Me out basically and get me started ... 1 small condo ( 2000/month)4 monthly residential places(350-600/month each) and 2 homehardwares( which is I’m assuming he’ll give me a decent rate and not take advantage ) the person who owns the homehardwares is the one putting pressure on me to start my own thing ... either he’ll give me the work or someone else ... when I say I have no idea as to pricing that’s not completely true .. I have a generally idea and I’m pretty quick to learn ..I feel I should be able to maintain and handle these 6 properties all on my own ?? What do you think ?
Thank you very much for all you input , good or bad
Your assuming he will give you a good rAte? What if what he thinks is a good rate you think is dogcrap?
 
OP
D

DylanVickers88

Junior Member
Love the feed back ! I’m well aware of the liabilities insurance and the amount it will cost ... I’m assuming anything under 1000 month is good. But unlikely // also my main business will be landscaping ....condos here won’t give me a contract unless I do both .... I don’t expect to make a fortune off this but I do hope to atleast pay the bills during winter months and gain lots of experience and knowledge .... do you guys believe I can manage these properties on my own ? Can I get more ? Or just leave it with what I have until I get things rolling ?
 
2 ways to get around high insurance. 1. stick to driveways. 2. Don't offer any deicing services. Both of those options won't help you with what you're wanting to do.

Before anyone can answer if you can take more or not, we need to know how big they are, how far apart, and what you have for equipment.
 

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