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Seasonal contract with discounts for less snow?

Discussion in 'Bidding & Estimating' started by Premierplowing, Feb 7, 2013.

  1. Premierplowing

    Premierplowing Member
    Messages: 40

    I have an opportunity to bid on a condo complex that currently is under a seasonal contract for a 50" season. With S/E Wisconsin having less than stellar past two seasons, the current contractor is clearly making out on the better end of the deal.
    I have a relative that is a member of the board for the HOA and my question is, Have any of you bid a seasonal contract for X amount of snow for the season with a discount for less accumulation? What would the discount percentage be and what would the best way to structure the proposal.
    My first thought is to give them several options
    A)Time and Material per event
    B)Seasonal with a 30"/season snowfall, with X amount for each inch exceeding 30"
    C)50" seasonal snowfall, with a discount for season with less than contracted amounts.

    Any ideas would be appreciated.
  2. goel

    goel PlowSite.com Addict
    Messages: 1,079

    Do you get a discount on your insurance if you decide not to drive?
  3. Antlerart06

    Antlerart06 PlowSite Veteran
    Messages: 3,437

    If you wanting steal the job
    I put a 50'' Cap and tell them you will charge them for 30'' But once hit the 30'' mark The rest of 20'' will be billed So if you never get past 30'' you will be saving HOA some money You probly steal alot jobs that way
  4. blowerman

    blowerman PlowSite.com Addict
    Messages: 1,275

    Everyone has an opportunity to bid on a "condo complex," for that matter, they can bid the one you are talking about.
    How about, know your costs, profit etc, etc, then present the proposal as you feel it should be.
    Just because it states up to 50 inches, the low snow total doesn't really matters. There have actually been alot of small snows that we've services. (yes, I'm in the Milwaukee area)
    In the end it's usually a wash.
  5. djagusch

    djagusch 2000 Club Member
    from mn
    Messages: 2,107

    Will you have it so they pay more if you get 70"s? This year mn is 10" below normal. Have a chance to make that 10" up this weekend. Take the last 2 seasons before this one we had a 24" and 80" season , which averaged for a normal season over the 2 years.
  6. blowerman

    blowerman PlowSite.com Addict
    Messages: 1,275

    Just an FYI
    This topic has been dissected all ways.
    We are happy to post and help on this thread, but honestly a basic search will answer all your questions.
  7. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

  8. Premierplowing

    Premierplowing Member
    Messages: 40

    I must be blind....I've spent and hour searching and cant find one post referring to a discounted seasonal contract for less snow....
  9. Northeastsnow

    Northeastsnow Junior Member
    Messages: 26

    I agree with everyone else here, You dont get a discount if you eat half your breakfast at diner, If they want a seasonal price they are buying an insurance policy basically... You are saying that you will service their lot for X amount of money reguardless of snowfall amount.

    Most of our seasonal contacts are a 3 year min, this way everyone breaks even eventually. LOL
  10. Deut2210a

    Deut2210a Member
    Messages: 39

    our solution

    We sell annual (365 day) not seasonal contracts and it works well for us. It helps distribute the income over the year, allows us to sel lcontracts all year long and if we have a year with little snow we offer a discount to continue the contract for the next 365 days. Kind of like a moving average works in the stock market.