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Salt Contract

Discussion in 'Ice Management' started by Theshoemaker, Mar 18, 2009.

  1. Theshoemaker

    Theshoemaker Senior Member
    Messages: 210

    Hello, i'm wandering how one might go by including the salting price into a plowing contract. I know that to come up with seasonal contract price you take your price to push x by how many events you think might happen but is this the same for salt?? I know this one lot i'm looking at would take 1 ton (heavy) every time it gets salted but do i times my price for salting by the same number for push-es???:dizzy: I'm kinda new to the salting so any help would be great.

  2. Ipushsnow

    Ipushsnow Senior Member
    Messages: 314

    Shoemaker, you will salt FAR more than you plow. Just think of all the little 1/2" dustings, freezing rain events, melt and re-freeze cycles, etc. My advice would be to talk to someone from your area and see what they say is the average. If you can't find anyone I would say, just throwing out a number... 150% of plowing events. So if you plan on plowing 20 times plan on salting 30.

    Another thing you might consider is not having all your contracts be seasonal. I do 70% per push and 30% seasonal. That way with a good winter I can make good money off the per push, but in a bad winter I got money coming in from the seasonals.

    As far as pricing for salt, there are a lot of ways. Cost x3 is pretty standard, but with salt so high right now customers are starting to lose their minds. Plus, if salt ever goes back down to $35-40 bucks a ton you are losing out on a lot of money. I do it a little different: profit+cost. Decide what you want to make per ton, and just add the cost of salt to that. So if you want to make $200 per ton and you are paying $70 per ton then charge your customers $270 per ton. Remember you are not really making $200 per ton though because of all the other costs involved in running a salting operation.

    Good luck!