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Season contract amounts ??????

Discussion in 'Commercial Snow Removal' started by ppandr, Sep 30, 2009.

  1. ppandr

    ppandr Senior Member
    Messages: 619

    We have a several commercial locations here in NJ. We were asked to quote a seasonal number for a local Marriot property. We have been billing per event (contracted rates) the past 4 years, but the Marriot corp wanted a lump sum for the year. In the past years we have billed 6-8k per year for this location. It takes approx. 3-4 mh to plow for a 4-6" storm and and hour to salt (thats door to door) None of these years has been more than an average year...with an average year billing out close to 8K. I met with the manager last week and we agreed upon $7,500 which he then presented to the ownership group. Without additional discussion he called me and said it was a go....
    I figured we spent around 50-70 hours on an average season. If we have a hard winter maybe we get to 100 hours so instead of $125/hr we are down to $75.
    Overhead, labor and salt costs have remained relatively equal over this time period and all our accounts as well as our shop are within 5 miles of this location.

    Did we sell ourselves short?
    How do others "convert" to seasonal contracts?
  2. ppandr

    ppandr Senior Member
    Messages: 619

    No one???? thanks guys
  3. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Maybe you could of bumped it up a little. When you go seasonal it changes things. Now they will expect to come by everytime a snow flake hits the ground. When they were paying per push they may of thought twice before calling you.
    Last edited: Oct 1, 2009
  4. augerandblade

    augerandblade PlowSite.com Addict
    Messages: 1,054

    When we bid on seasonal contracts we always have a clause in it that stipulates how much snow we are quoting on. If it goes above that amount there is a extra charge per centimetre usally 1 to 3 percent of the contract total before taxes. That way you dont get burned. And 1 millimetre of freezing rain is equal to one centimeter of snow. Sorry for the metric measurements.
  5. ppandr

    ppandr Senior Member
    Messages: 619

    They never call us...even at a dusting we salt as per our contract. Seriously considering pretreating this year although never have previously.

    Considered the overage clause and discussed it with them as well...not successfully though
    Last edited: Oct 1, 2009
  6. snobama

    snobama Member
    Messages: 35

    It's hard not to question a quick awarding of a contract... even if fruit may be in your beer! Make it a multi-year agreement, 3 years is the generally the norm to help average out any abnormal winters. If you can get min/max snowfall cap even better. Without even seeing the property, your revenue history shows you got the job at a fair price.
  7. ppandr

    ppandr Senior Member
    Messages: 619

    .......even if fruit may be in your beer!

    I drink more Blue Moon than water :drinkup:

    I can assure you that I wont die of scurvy