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Price basis on snow and salt

Discussion in 'Introduce Yourself to the Community' started by TNSnowMan2224, Mar 29, 2015.

  1. TNSnowMan2224

    TNSnowMan2224 Junior Member
    Messages: 28

    I'm adding to my Business to go 365, I am following a strict plan.
    Now I can get my normal business to understand the profit vs cost no biggy.
    New business I want to charge 50 per hour
    2 bags salt cost 20for easy math
    I wanna go 15 per bag.
    So 90 an hour total bringing 60 doesn't seem bad if you have multiple places you can be.
    Is that attractive??
  2. bhmjwp

    bhmjwp Senior Member
    from kcmo
    Messages: 309

    x2 your numbers and you might get to profitability! It appears you are in a low snow area, The low volume alone dictates higher prices to offset lower volume. I wish I had 30 events a year to offset my seasonal start up cost. I count on 9, sometimes have 6, and a good year is 15!
  3. TNSnowMan2224

    TNSnowMan2224 Junior Member
    Messages: 28

    Gotcha, I want to be cheap though even at a neutral year to get business and snow a++ Product
    Especially with not many chances to make trait be seen

    Do most guys put spacers on plows or go straight blade to ground
  4. gasjr4wd

    gasjr4wd Senior Member
    Messages: 287

    Tooo cheap!
    You will not make any money being that cheap.
    Your posting is hard to understand...
    If you are getting salt for $10/bag they better be 100lb bags.

    They are called shoes and you will here most guys say no shoes.
    I run them 100% of the time.
    If properly adjusted they do their job. Most guys don't know how to adjust them.
  5. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 9,883

    Its not rocket science:rolleyes:...

    We do know how to adjust the feet....shoes,,,, skids...
    and we still chose not to use them.

    They do have there place as some will use them on gravel drives, my drive is gravel and I still dont use them.

    At $50 an hr how many hrs will you have to work just to pay for your commercial vehicle liability insurance?

    next, dont charge your customers by the hr.

    Don't lowball.....
  6. gasjr4wd

    gasjr4wd Senior Member
    Messages: 287

    Now see, I knew that would get under someone's skin. I was looking for the little stir the pot thingy but didn't see it... If there was a flame suit I'd wear that. Or duck and run...

    But yes, what he said. Never by the hour.
    As SnoFarmer says, way cheap.

    You should figure your business plan and figure your costs before you even turn a key. Just to have the plow on the truck it costs me X, then go from that.
    I charge about $60/hour just for site inspections. And thats for nice/existing customers.
  7. Randall Ave

    Randall Ave PlowSite Veteran
    Messages: 3,593

    In Jersey when I was doing the roads for the town. We came up with a cost per hour around $58.00 per hour.
    And I think we were low. Something tells me Tennesse insurance is cheaper. Your average snow fall is 15 inch per year? You have to charge more than your showing to break even. Remember your supposed to turn a profit, don't be the cheap guy.
  8. cet

    cet PlowSite Fanatic
    Messages: 7,257

    I'm trying to understand your post. You figure you will spread 2 bags of salt per hour of plowing. You will need more the 2 bags to cover what you can plow in an hour.

    If you only get 15" of snow it's going to take years just to pay for the plow.