Thoughts On My Commercial Hourly Rates

PSDT444E

Junior Member
Hi guys I'm a new member to this site. I would like to know what your thoughts are on my hourly rates for one of commercial customers also any suggestions or recommendations that you might have. I'm from Minnesota I have 1 commercial account I mainly service seasonal residential customers within a 6 mile radius of my house. I picked up a 5.5 acre yard with a parking lot and about 300' of private drive that is located outside of the 5.5 acre yard. I charge them $150 per hour they have a lot of material/hazards within the yard and it usually takes me about 4 hours to push 1"-3". How does my pricing compare to the current pricing within the industry? I have not pushed anything over 3" this year and when I do should my pricing go up per hour or should I leave it at $150? Thank guys
 
Did you bid the job at $150.00 per hr for 4 hrs or did your client just agree to pay you $150.00 per hr no matter how long it takes you? To answer your question $150.00 per hr is great money in my neck of the woods.

You could find a sub around here for $70. $75. per hour.
 
OP
P

PSDT444E

Junior Member
4 hrs. for 1-3” of snow? What’s going to happen when you get 1-2’ of snow @ 2-3”/hr.?
I will make a clearing for their private drive and parking lot at a minimum charge of $150 during those snowfalls which are pretty rare here in Minnesota. As for their 5.5 acre yard that can be done at anytime since they are a fencing wholesaler and don't get any business during the winter months.
 
OP
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PSDT444E

Junior Member
Did you bid the job at $150.00 per hr for 4 hrs or did your client just agree to pay you $150.00 per hr no matter how long it takes you? To answer your question $150.00 per hr is great money in my neck of the woods.

You could find a sub around here for $70. $75. per hour.
Fred
My client has agreed for my company to come in at $150 per hour whether I'm plowing in my truck or stacking snow with the Bobcat. He was screwed over by the contractor that was suppose to do his lot last year and never showed up when there was 6" of snow on the ground. So I came in late last season to help him out with his snow removal needs. I'm an owner operator and do not pay anybody unless I really have too.
 

MSsnowplowing

PlowSite.com Addict
Location
Eastern CT
Hi guys I'm a new member to this site. I would like to know what your thoughts are on my hourly rates for one of commercial customers also any suggestions or recommendations that you might have. I'm from Minnesota I have 1 commercial account I mainly service seasonal residential customers within a 6 mile radius of my house. I picked up a 5.5 acre yard with a parking lot and about 300' of private drive that is located outside of the 5.5 acre yard. I charge them $150 per hour they have a lot of material/hazards within the yard and it usually takes me about 4 hours to push 1"-3". How does my pricing compare to the current pricing within the industry? I have not pushed anything over 3" this year and when I do should my pricing go up per hour or should I leave it at $150? Thank guys
You should base your rate on snow fall totals or a seasonal rate because as you get to know the place your time will decrease for plowing.

There are no standards for snow plowing, each state and within each state pricing is different.

In my neck of the woods, a 1/2 acre lot for a 3 inch storm that takes a half hour to plow I can get say $100

Same state say in the capitol, same lot they can get say $200

Same place say in New Jersey they can get $300.

Another state they may get $75.

So f your getting $150 an hour and the client is happy to pay that and your making a profit, then stick with it.

If your overprice for your area, then your best bet is to look at your operating costs to get a base price for charging and then bump it up to make a profit.

And as OldDog said, your hourly rate remains the same no matter if you push 3 inches or 10 inches of snow.

Everything is based on hourly but as you grow more proficient in plowing the area your time will decrease and then you make less money but if you charge the client based on inches or seasonal then you will still make the same amount of money.

Example, I had a 2 acre lot, the first year it took me 2.5 hours to plow the first few storms -(3 inches)
When I learned it I got that time down to 2 hours.
Then when I bought a V plow I got that time down to 1.5 hours
If I was charging by the hour, I would have lost 1 hours pay.

Have a great season.
 

ratherbfishin

Senior Member
Location
northeaster
I will make a clearing for their private drive and parking lot at a minimum charge of $150 during those snowfalls which are pretty rare here in Minnesota. As for their 5.5 acre yard that can be done at anytime since they are a fencing wholesaler and don't get any business during the winter months.
I’m not familiar with Minnesota weather, so that being said, around here we can get a foot or 2 dumping. 5.5 ac. with a foot or 2...well your gonna need a bit more than a p/u truck!
 

Snowsled

Junior Member
Example, I had a 2 acre lot, the first year it took me 2.5 hours to plow the first few storms -(3 inches)
When I learned it I got that time down to 2 hours.
Then when I bought a V plow I got that time down to 1.5 hours
If I was charging by the hour, I would have lost 1 hours pay.

Have a great season.
Hopefully you didn't lose any pay because your efficiency went up and you were on the next job sooner.
 

leigh

PlowSite Veteran
Location
CT
Sounds like a winner to me. At this point its not like your in a hurry to get to next lot, it's your only one! Plus you get to clear it after all your resis. My hourly rate that I base my pricing on is higher, but that's a regional thing that has no bearing on your area.
 

tpendagast

Senior Member
Location
Anchorage AK
I dunno...if someone is going to pay $150 an hour Id call that a huge win.
Treat them like gold.
Someone like me would come over and take that away for $90/hr.... I wouldnt spread it around how much you charge, gotta keep secrets away from snipers.
 

Chris Rigsby

Member
Location
Cambridge, MN
Hi guys I'm a new member to this site. I would like to know what your thoughts are on my hourly rates for one of commercial customers also any suggestions or recommendations that you might have. I'm from Minnesota I have 1 commercial account I mainly service seasonal residential customers within a 6 mile radius of my house. I picked up a 5.5 acre yard with a parking lot and about 300' of private drive that is located outside of the 5.5 acre yard. I charge them $150 per hour they have a lot of material/hazards within the yard and it usually takes me about 4 hours to push 1"-3". How does my pricing compare to the current pricing within the industry? I have not pushed anything over 3" this year and when I do should my pricing go up per hour or should I leave it at $150? Thank guys
Your from MINNESOTA too? What Town?
 
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