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seasonal contract

Discussion in 'Commercial Snow Removal' started by me!, Oct 2, 2009.

  1. me!

    me! Member
    Messages: 31

    I have a property under contract for this winter, they would like to renegotiate the terms from hourly to a seasonal price.

    9 acers wide open with plenty of room to pile snow.
    No salt at this time
    2 inch trigger
    our average yearly snow fall is 38 inches
    in the past 10 year the highest number of pushes in a season was 12 but the average per season push is 6-8.

    I have not decided on the exact equipment yet, but i'm leaning towards 2-3 trucks and a front end loader. I can put more trucks on it if needed.

    what would you charge?
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I assume you had this lot before?
  3. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 13,237

    I assume you have records of how long it has taken you in the past?
  4. me!

    me! Member
    Messages: 31

    The property has increased in size from 2 acers to 9 so my records do not apply anymore.
  5. bsuds

    bsuds Senior Member
    Messages: 192

    Figure out the the total cost in the past. Break that price down to the acer and add the price for the additional 2 acres.Bump up the price alittle bit to accomidate for the fact that they are going to expect even better service, since they are paying for it by the month. This should put you in the ballpark.wesport
  6. 2COR517

    2COR517 PlowSite Fanatic
    Messages: 7,115

    So the lot is almost five times bigger than last year?
  7. me!

    me! Member
    Messages: 31

    Yes the plowed area is almost 5 times bigger.

    The way i'm looking at this is just because we are plowing 5 times more area does not mean we will only take 5 times longer. For starters we have not needed a front end loader in the past, but with the increased area we will now. We will also be pushing it farther, so it will take longer there.

    We are a large enough company to handle the property, but not large enough company to eat it if it a bad winter. In addition, we do some larger properties, but the wide openness is new to me on this one.

    The last thing i want is to be one of the people who bid 10 k a year on something that should be 50,
  8. me!

    me! Member
    Messages: 31

    Ok, here is what i have come up with.

    the plowed area is 8 acers.

    2 plow trucks @ 6 hour each @ $85 and hour=$1020
    1 front end loader @ 6 hours @ $140= $840
    total per push would be figured at $1860

    with an average of 8 pushable events, 4 of which would require 2 pushes makes 12 pushes in an average year. Bump up for cya and and extra push or 2 for depths right under the trigger.

    Yearly price would be $1860 X 16 pushes =$29760 per season on the snow.

    Now salting is a possiblity, but only 3 acers if it.

    3 acers at 1000# per acer would be 1.5 ton per app.
    figure 30 apps per season at 300 per ton (450 per app) = $1350 per season

    Total cost per season $43260

    The average snow fall around here is 2-4 inches.
    in ten years we have not had more then 8. We get about 2 bad storms a year @ 6 inches.

    Do my numbers seem high or low and why.

  9. 2COR517

    2COR517 PlowSite Fanatic
    Messages: 7,115

    18 machine hours to plow 8 acres seems high to me. Many guys use an acre an hour as a rule of thumb. Loader w/pusher would be even faster.
  10. Bajak

    Bajak Senior Member
    Messages: 999

    I think your hours are a bit high ( 2.25 equipment hrs/acre ). I would think it would be quite doable with only 1hr to 1.5hrs max. per acre. Your dollar figures I will only say that I think they are with in reason but realize I live nowhere near you and am in an entirely different market. My seasonal figures are based upon 60 pushable events and my hourly rates may or may not be significantly different than yours.
    I cannot see why 8 acres cannot be done with only 2 pieces of equipment (truck & loader) in six hours maximum. Even if you had a record snow fall of 16 inches your loader should be able to walk right through it. The salting figures I would assume you have experience with already or have been in touch with someone already as I know they vary widely from place to place also.
    Hopefully someone in your area can help you out with your situation. A bit of advice though, it is not necessarily smart to post your hourly rates or quotations on an open public forum. Remember we are here to help but some of us are your competition. :rolleyes: I wish I knew what the guy down the road from me bid. :rolleyes:
  11. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 13,237

    I'd probably be considered a lowballer, but I could underbid that in a heartbeat at higher hourly rates.

    As stated, your production times are off. Depending on how open the lot is, this should be about 4 hours time max if using a loader with a decent operator.

    On a 2-4" snowfall I could plow it with a truck in maybe 6 hours depending on the layout. But then, I'm not using an inefficient V-plow. :D