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"Per Trip" or "Seasonal Price" for de-icing?

Discussion in 'Ice Management' started by MJLsLawnCareNmo, Dec 18, 2007.

  1. MJLsLawnCareNmo

    MJLsLawnCareNmo Senior Member
    Messages: 125

    Working on writing up a new contract right now, but came across a little problem. First off let me say that I'm new to this and this is my first year in business.

    What do you guys normally do for De-Icing in regards to charging customers? Do you charge a "per trip" for de-icing or does anyone use "seasonal contract" prices for deicing where you guess you will de-ice (X) times for the year and come up with a price?
  2. jrglandscape

    jrglandscape Member
    Messages: 40

    I do it by the trip it's the only way to cover yourself. If you try to bid it seasonally then you better make sure that you figure a high number,
  3. DJC

    DJC Senior Member
    Messages: 481

    We also do per trip because I don't think they would sign a contract any other way. Plus, why take a gamble if you don't have to:nod:
  4. MJLsLawnCareNmo

    MJLsLawnCareNmo Senior Member
    Messages: 125

    Thanks for the reply. I kinda planned on charging per trip too, but was considering a seasonal price too for the sake of people like commercial properties who just want the weather elements taken care of everytime regardless.
  5. MJLsLawnCareNmo

    MJLsLawnCareNmo Senior Member
    Messages: 125

    Thanks for the reply. I was uneasy about coming up with a number myself.
  6. forestfireguy

    forestfireguy PlowSite.com Addict
    Messages: 1,276

    Go seasonal with a cap, then per application after if they reach the cap, so in a "normal" season they can have their budget set, if you have an "exceptional year" you make more and they are understanding since you will be seen there doing what you were contracted to do, besides, like i said it's contracted that way..
  7. big acres

    big acres Senior Member
    Messages: 653

    forestfireguy is right. When people want an all-inclusive monthly price, we'll do it, but only if there is a cap on salting, hauling, pile moving, etc... You could lose your shirt in a heavy winter.
  8. LwnmwrMan22

    LwnmwrMan22 PlowSite Fanatic
    Messages: 28,362

    Wouldn't the gamble be that you actually have the weather to perform the work??
  9. LwnmwrMan22

    LwnmwrMan22 PlowSite Fanatic
    Messages: 28,362

    Some of my accounts salt is included in the seasonal price.

    Some of my accounts it's $90 / hour, plus the cost of supplies.

    I only run bagged material, since I usually use about 2 pallets / year.

    My buddy that goes through 2 pallets / event, charges by the pound.

    I guess it would be determined on what your clientele is.

    If you're like me, basically have 3 banks or similar properties that want a smaller sq. ft salted each time, you can use a seasonal price, because if youre off a little, you're not going to go bankrupt.

    If you're like my buddy and you're off a little, you could REALLY do some damage to your bottom line.

    However, I'm sure if he went back and looked at his records, that he could come up with an average amount of saltings to perform on a yearly basis as well.
  10. cet

    cet PlowSite Fanatic
    Messages: 7,257

    80% of our work is all in pricing. For this you need a multi year contract. You may have a bad year but you are going to have a good year. The last 2 years for me have been good but this year is bad. We are through 60-70% of last years salt. For multi year contracts you have to be good with money, save some of the extra profit from previous years and just perform the work that needs to be done. Some of my Brokers are at 70% of last year also.
  11. framer1901

    framer1901 Senior Member
    Messages: 852

    Yea what cet said, all but the 60-70% stuff for here at least.

    You have to really understand past years conditions for a seasonal plowing bid let alone salt..... And multi year is the only way for protection..........
  12. Little Jon

    Little Jon Senior Member
    from Buffalo
    Messages: 139

    We charge per ton of salt. The reason we dont charge per trip is cold weather affects how well salt works. Therefore if its 32F we will use less salt than if its 15F. And on some of our properties the difference depending on conditions can be close to 5 tons. We do tell the client however that the average trip will be X tons and therefore cost $X, but trips will very on conditions.
  13. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,194

    Same here, all in is great on the light years and ok on the heavy years. It's nice having regular income coming in.