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Question about charges.....

Discussion in 'Commercial Snow Removal' started by LwnmwrMan22, Oct 6, 2007.

  1. LwnmwrMan22

    LwnmwrMan22 PlowSite Fanatic
    Messages: 28,362

    I do all my plowing on a flat fee per month, except for 2 locations which bring in roughly $200 / event to cover fuel costs.

    I have no labor costs (yes, I realize I pay myself) but no employees, it's I and my father doing 19 commercial properties.

    We average 55" / year, which translates to an average of 17 events per year, even at a 1" trigger.

    When I bid my properties, I base them off of a price of $125 / hour for a pickup with an 8.2 V.

    I then take that hourly rate (usually about an hour to do a bank lot, gas station, fast food restaurant, small 3-4 tenant strip malls, my niche) and multiply it by 18 (build in an extra snowfall) and then divide by 6 (number of months for the agreement).

    Basically it comes down to a monthly price of $375, or $2250 per year.

    This is just straight plowing, no salt, no moving piles, sidewalks are shoveled at the end of the event (still within that hour time frame), all that is charged out at $100 / man hour plus supplies.

    On here, and talking with other people in my area, it seems that total for the year is quite low. However, most guys in my area are only running $90-115 / hour, and I see guys on here that would LOVE to get to $90.

    Can a couple of you guys give me your opinions on this, pick it apart if you need to, and either affirm my pricing or show me where I've gone wrong, something I've skipped on.

    Lots that take 2 hours would be twice as much obviously, and I DO have some that have salt built in, but they're at a much higher rate as well.

    The example was my basic pricing structure, just so I could get some ideas on what you others thought,
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I basically do the same thing. I figure out how much per plow and multiply it by 25 than divide it by 5 monthly payments.This way the company can budget it without any surprise.
  3. cjasonbr

    cjasonbr Senior Member
    from Mass
    Messages: 635

    What you are doing sounds like a typical seasonal pricing strategy.

    and if you're getting paid $100 an hour for shoveling you're not doing bad at all.