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more on rates

Discussion in 'Business Fundamentals' started by jim620, Dec 18, 2003.

  1. jim620

    jim620 Junior Member
    from NE PA
    Messages: 3

    Hi i'm new here and I have been reading about rates here and was wondering if i'm not charging enough. The guy that used to do the lot where my wife has a store was doing a lousy job. Someone got his own guy to do it for the same price. I had just brought a plow truck to do my drive and some friends so I figured why pay him i'll do it myself (on our building) which is seperate from the rest of the complex. This year I get the whole acct.. Now it takes me about 4hrs to do a 6 inch snow. The other guy charged $225 for the lot per push, so thats what I get. I think that's cheap, what do you fellow plowers think? Everyone says I am doing a great job, can I just increase now? What I see here is about $100 - $150/hr avg. Any opinions would be appreciated. They also want the walks done now and I have no idea on that. I have a 3/4 ton GMC 4x4 PU 7.5' meyers PA.
  2. JMR

    JMR Senior Member
    Messages: 567

    It sounds to me like your awful cheap. I would think something in the 400 - 500 range would be more appropriate. We get $30.00 per hour for walks. All prices will vary with geographic regions, due to overhead and supply & demand. Be professional, get what the market will bear and what the job is worth. A satisfied customer will pay more for good service.
  3. plowman777

    plowman777 Senior Member
    Messages: 227

    your not even covering the wear on your truck
  4. BIG M

    BIG M Member
    Messages: 51

    $225 divided by $ hrs= $56.25 an hour.
    Minus gas,
    Wear & Tear,
    Your Labor.
    I'm Thinking your a bit low here.
  5. jim620

    jim620 Junior Member
    from NE PA
    Messages: 3

    I think I am going to tell them all where to go. Now I am getting complaints because I charged an extra $10/ store 9 stores when we had all that ice on top of the snow (last storm) it took me 2hrs extra. They want it at $225 per push and that's it. What do you guys do 5" snow then freezing rain 1/4 - 1/2 of ice on top?

    I think I am going to tell them that's it you want $25 plow x 9 stores that's what you'll get, when the snow stops and rain starts plow and leave the ice. Just for my own I called a guy that advertises in the paper and said I was a store owner there and he said " oh I will do it for $200 sidewalks included" can imagine the crap job he would do - sidewalks included.
  6. plowman777

    plowman777 Senior Member
    Messages: 227

    your just in the wrong area. my customers throw money at me when the conditions are worse, i do charge them more and i will still get $10.00 tips on top of it.
  7. SWC

    SWC Senior Member
    from VA
    Messages: 134

    I think the reason they're not going for the higher price is the fact that you already gave them a lower price.

    It's hard to get more money from a job you've already bid.

    Try the higher price on a new customer and the results should be better in my opinion.
  8. sodking

    sodking Member
    Messages: 45

    Do you have a signed contract? If yes...stick to your word. If not, then stipulate the conditions and the prices for differring conditions. Write it up in a contract and get them to sign it.
  9. jim620

    jim620 Junior Member
    from NE PA
    Messages: 3

    I do have a contract with the landlord and he asked me to bill the tenants directly. In the contract I put in extra charge for ice on top of snow, like I said the last storm was about 5" of snow then it rained for about 5hrs after wards freezing upon contact. I was being a nice guy and figured I would wait for all precipitation to stop. Like I said I should have plowed after the 5" snow then went back and charged for ice cleanup. I guess it's like they say nice guys finish last. From now on I am going in and just pushing as fast as I can and get out, I used to go over and get it nice and clean they loved the job I did but don't want to pay more, people s**k! I think i'll talk to owner and let him know that I will bill him and he can collect from them then, that's the way it used to be. Thanks guys I am off to FLA for vacation now (gave my truck to a friend to cover for me in case it snows while i'm away) hope the snow holds off till I return. Everyone have a safe and happy holiday and again thanks for the advice. JIM :dizzy: :help: :gunsfiring:
  10. Ground Master

    Ground Master Junior Member
    Messages: 22

    so on top of your low price, you have to divide the bill out equally among 9 tenants? wow!!!!! It must be a pain collecting your money. Just finish out the year and rebid for the next year with what you have learned.
  11. ih82plow

    ih82plow Senior Member
    Messages: 109

    From now on I am going in and just pushing as fast as I can and get out, I used to go over and get it nice and clean

    I think your making a mistake with that.Honor your comitment and nextime make sure your priced to provide the proper service.

    Low prices for poor service puts you out of buiness.
  12. Michael F

    Michael F Senior Member
    Messages: 203

    Not to disagee with everyone here BUT look at his plow. He's probably making good money for what he's got.
    My first piece of advise is to add a set of Pro wings, that will add almost two feet to your plow, & cut your time at least 25%.
    Your complaining about the frozen crust on top the snow, a full trip plow is going to have problems with this, thus taking more time. This is why trip edge plows are more popular in areas that receive heavy wet snows, they arent as effected.
    Discussing pricing on this or any board becomes a touchy issue, we all need to be fully aware of. Many of you(members) are in NJ or NYC area, pricing/hr is higher there... and snowfall rates are less. Fewer total billable hours spent for season, & cost are more also. I fell into the same mindset he is in this past year, (I thought I should get $ 110+/hr), turns out the market average in this area is around $ 80.00/hr. But we have 20+ events/yr. on average. To make a long story short, we bid a Sh*t load new work, got virtually none of it. Resigned all our old work & got around 25-40% growth(we could of had 1000%+ growth, with no problem). Just trying to remind every one of this issue.
  13. gpin

    gpin Senior Member
    Messages: 390

    If all a client discusses is price and that is all he cares about, let him go. If you maintain good equipment and do a quality job, there are clients out there who value your service. Do the best work possible and control your own destiny.