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New to the Business

Discussion in 'Business Fundamentals' started by gordonb, Mar 2, 2004.

  1. gordonb

    gordonb Junior Member
    from st paul
    Messages: 2

    I was wonder how much do you guys get for a seasonal residental contract. The reason that I am ask is that I am put together a business plan for lawn care and snow plowing and so it would be helpful if someone could help me out with some figures.

  2. Mick

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

    Gordon, I assume you are new to plowing snow. That's really kind of like asking how much you would charge to mow a lawn. It depends on so many things...

    First, I'd suggest you figure out how much you'd charge for plowing a particular space with say a 6" snowfall. Then figure out how many "events" you'll have on average. You could try to find that through something like NOAA site. So say this space would take an hour on average, you get an average of 15 events per year and you decide on $100/hr. You offer a seasonal contract for $1500. You might give a discount for some reason, like having a guaranteed income or you really want this account.
  3. capital

    capital Senior Member
    Messages: 127

    Gordon, on the seasonal contracts we base them on how many snow events we get in a typical year. Most of your local contractors in your area will have that for you. In Des Moines it is based on 8. About half my clients chose to prepay and the rest take a contract based on snow fall amount for each snow event. This year the snow fall amount contracts came out to 12 billings while the annual contracts only paid their original bill based on 8. Last year was just the oposite. IE the per event billed clients only paid for 6 events while the seasonal paid more. So what you look for is a mix that works to cover you based on alot of snow or a minimum of snow .