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Prices in Minnesota

Discussion in 'Commercial Snow Removal' started by Robbie Rooster, Aug 12, 2005.

  1. Robbie Rooster

    Robbie Rooster Member
    Messages: 33

    Hey Minnesota guys. With the increase in gas prices lately. I want to see where everyone is with their pricing in our area. I know prices will still vary depending on where we are in the state, but let's face it, we can't compete with the guys out east. $125 an hr?, not here in MN. I'm in south central MN down closer to Mankato. Last year I was bidding my accounts figuring $60 an hr. I know some guys in the twin cities that were also $60 an hr. I'm all for making more money. Do you think $60 is too low in our area, or can we start to raise our prices a bit. I don't mean to be nosy, I know it's our business and we can charge what we want, but if the market is higher, I'll raise my prices. If the majority is charging $75 - $100 an hr and I'm at $60, am I a low baller? Bottom line, I want to raise my price and am looking for your input and experience in our area. Will our Minnesota resident's go for it?
  2. LwnmwrMan22

    LwnmwrMan22 PlowSite Fanatic
    Messages: 28,362

    I'm about 30 miles north of St. Paul, Forest Lake area.

    I try to run between $75 and $100 / hour.

    However, I'm on contracted rates, so I bill monthly, based on 18 snowfalls / year.

    Last year, with only plowing 7 total times, with none from November thru January, only plowing in February and March, i ended up at $293 / hour.

    Anyways, I've got some buddies in the cities that plow at $45-50 / hour as subs.

    Here in Forest Lake, you can get subs from $30-50 / hour, depending on how much work you want them to do, what accounts, etc.

    If you're getting $60 / hour, you're on what I would consider the low end, but overall you're right in the ballpark.
  3. OneBadDodge06

    OneBadDodge06 Senior Member
    from Iowa
    Messages: 770

    I think most guys consider low ballers as the ones that charge $5 to do a driveway and will way way under bid someone to get a job. Almost like they're paying the customer to clear their lot.
  4. Wesley's Lawn

    Wesley's Lawn Senior Member
    Messages: 394

    Im with LwnmwrMan22, Try to stay between 75-100 an hour for a truck. When i use subs i pay between 45- 60 an hour depending on their experience and how much and what they are doing.
  5. qualitylawncare

    qualitylawncare Senior Member
    Messages: 501

    $155+ per hour for plowing only..

    All of my commercial contracts also need salting and sidewalk clearing.. Have a few accounts I'm pushing over $600 an hour + materials, because I'm reliable and leave no snow trails on the lot when I'm done..
  6. Up North

    Up North Senior Member
    Messages: 921

    I'd be one happy camper if I could get rates close to that up here in Bemidji. Every Tom, Dick, & Harry has a plow up here and you can always find someone to plow your driveway for $25 or less. Yeah, they do a crappy job but that's what they're used to getting. I had most all my customers telling me last year that they never had their lot plowed before getting to work, and residential customers where impressed that they were plowed out before leaving home. I'm going to bump my rates a good bit this season, I'll end up with less customers I'm sure but I'll have a better profit margin.

  7. caz41

    caz41 Member
    Messages: 86

    I'm in the same boat as Up North. There is a ton of people here with plows, and all of them will plow anything for next to nothing. Even when you try to tell some of the business owners that they probably don't have commercial insurance and that if they hit something it will be covered under their regular vehicle insurance, they seem to not care as much and just see that they are getting a service for a cheaper rate. It's pretty tough to get more than $60/hr here just because some idiot will do it for $25. If the gas prices keep going up we all will have to raise our rates to stay in business, but the tricky part is not putting them up too high to scare away the majority of your business.
  8. Robbie Rooster

    Robbie Rooster Member
    Messages: 33

    Thanks all for the feedback. I agree. I don't want to be scaring off customers, but when you think about it, they can see that gas prices are up and any business that uses gas would need to increase their prices. Gas price today is $2.69. I think I will try raising my prices from 60 to 70. Maybe even 75. If they don't like it they can find someone else to do it cheap who doesn't't have to pay insurance and all the other crap we do. But they'll get what they pay for.