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what has happened to the Market? Pricing on Snow removal Drastically Dropping!!

Discussion in 'Business Fundamentals' started by Mean4x4, Nov 2, 2007.

  1. Mean4x4

    Mean4x4 Senior Member
    from Livonia
    Messages: 100

    We are pricing & bidding properties all over and after seeing our competetors bids, I might as well work at Burger King & make more money during winter. Is anyone else experiencing this? Example a seasonal all inclusive contract for a retail shopping center ( 2 yrs ago 20,000.00 ) this year ( 11,000.00 ). I can't believe what has happened, at least here in Michigan. The only thing that is saving us is our Multi year contracts which are locked in until 2009. I hope we get a horrific winter to change this back.

    MIDTOWNPC PlowSite Veteran
    Messages: 4,554

    We lost one that last year was $9 grand and they told us they got it all inclusive with salt and sand for 7 so we said we would not match it and if the business is available in the future please let us know. I then left the meeting and hope it snows so much.

    This company has now parked 2 junk trucks on the site, that the plows on them are worth more then the trucks and I bet the insurance is non existant when it comes to liability.

    Just be ready, and when they call, dont bite them in the butt as much as you would like, just go plow. When they call they will alreayd know they are in trouble, you dont need to rub it in. We all want to but I find its done me best not to
    Last edited by a moderator: Nov 3, 2007
  3. Ole Tower

    Ole Tower Senior Member
    from MAINE
    Messages: 210

    Whats Happened to the Snow REMOVAL MARKET?

    I DONO? about CANADA? but here in the States w/ the Economey Up & DOWN & more Dealer lots are loaded w/ NEW--USED & ABUSED 4X4s & One in just about every DRIVEWAY locally any way! & w/ the Price of FUEL--Insurance & all the other Cost necessary in the now Plowing business & even the Big COs Feeling the Crunch--as every Ones competing w/ One other! its going to get a Lot Worse before it gets Better as Common Scense! Dictates that!--as I read the Snow sites & Hear all the BICKERING ESPECIALLY On being Under BID by LOW BALLERS? & I assume? most Plowers locally are Good at Plowing --but--NOT as Good in the Pricing Dept--as they should BE & with more & MORE COMPUTITION in the Plowing BUSINESS as stated above--More 4X4s w/ Plows--High BUCK plowing is a thing of the PAST!--as the Investment--Equipment--Fuel & Insurance continues to CLIMB & the Simple Fact that Fuel Cost alone & NOT just GAS & DIESEL--but--Home heating OIL--has Now risen to eliminate every thing on Ones Budget but the Very Necessities!--here locally the Cost of Filling UP Ones EMPTY Home Heating OilTank {275 gallons} Adds up to $825.00 & here locally I hear a lot of Plowers COMPLAINING! & Their RIGHT!!--but--What? can they DO? about That?--I Dono? Do YOU? as $$$ gets Tighter it Effects Every Body!--& the Bad thing IS! in referance to Plowing Is! Once the Price does Go Down --by Who Ever??--its Harder to Get It UP Again--so Its a Catch 21 Situation--& Were All Stuck w/ IT!--How Long will this Low Baller Prices Last?--thats the Big Question?? --OleTower--
  4. topdj

    topdj Senior Member
    Messages: 396

    we got guys around here that drop off a couple beat trucks at big lots and they dont even have plates on them, they have 2 trucks insured that have to go on the street to get to other accounts, so 4 truck only 2 insured we saw them filling them with gas cans LOL
  5. bribrius

    bribrius PlowSite.com Addict
    Messages: 1,609

    so why is that funny. i dont find that funny. not only are they running the business more efficiently and making it harder to compete for everyone. they will be making more money even if they are charging less. you realize how much they just cut off overhead by dropping junk trunks in that lot? and if the truck breaks they junk the truck and drop another junk truck to replace it. how do you know the trucks arent insured? i guess i just dont find that funny.
  6. topdj

    topdj Senior Member
    Messages: 396

    maybe they are but they are on privet parking lot and theres no Plates on them
    hell I doubt the tailights even work, they have nice single strobes on top,
    the lot they are on is empty after 5pm so there is really no one to get into a accident with
  7. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,993

    I'll bet the trucks are insured. The liability of not having them insured would be to great, like using unlicensed drivers.

    Most of the area contractors with big lots store their snow removal eq on site. Trucks and loaders and skid steers.

    The one issue in this area would be complaints. Unregistered vehicles must be in a building. They can force you to remove unregistered vehicles from your backyard, driveway, anywhere they can be seen. So if you call and complain about unregistered vehicles perhaps they would have to modify their system.

    That's because you're a pro trying to make a living. You're paying taxes, commercial insurance, business license, not just plowing family drives for sport.
  8. topdj

    topdj Senior Member
    Messages: 396

    Im sure he has a blanket policy for at least the first 2 trucks
    he would never get the contract otheriwise as all business require you to prove coverage
    limits that they require.
  9. Ole Tower

    Ole Tower Senior Member
    from MAINE
    Messages: 210

    Whats happened to the Market?

    Well for ONE thing! theres for too Many 4X4s w/Plows out there! & I see a lot of Big Contractors Leaving Loaders & Graders that are Un-Registed in Malls & Shopping Centers & You can CALL the LAW all you want? as its Private Land & only the Owner of that Land can get Who evers Vehicles*Hauled OFF & as I have Stated Before! Customers Don*t Care! what? You Plow With! as they Want It Plowed & Cleaned & Don*t Really Care? How You Do It? just as Long as You Get It DONE!! & as Stated --Using Ole Beaters? to Do the JOB & if? One Dose Break Down? just Re-Place it w/ Another Ole Beater! Who ever? is Smarter than MOST! as He has NO! real Over-Head! & Hes Got the Contract! & He has All Night to Do the JOB & heres a Question? for YA!--would YOU Leave Your Trucks there over Night? NO! I don*t think So? as I wouldn*t--& We all Know! w/ NO real Over-Head Hes going to Make Some MONEY!! & I assume? Your RIGHT? He Don*t really Need any INSURANCE--as their CLOSED when Hes Plowing so Whats there for Him to HIT? in an EMPTY LOT-- & in TRUTH He will EXPAND & theres Nothing YOU nor I can DO about IT! & to ME Hes a pretty Good Salesman --as He must have Talked to the Owners & convinced them HE Could & Would SAVE them MONEY & thats the Real Name of this Plowing GAME--SAVING your CUSTOMERS MONEY!-- so Hes IN & Were Out!--& It won*t Stop there! so We had Better get USED to IT! ME I DONO?-- HORRAY for the Low Ballers? {I GUESS?} --OleTower--
  10. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 9,883

    :rolleyes:I bet he carries more than 2mill in INS.
    The lot being empty has nothing to do with INS.

    I Don't know what rock you crawled out from under but contractors have left trucks ,loaders, graders and skids in lots all season for decades.

    Why would they have to be registered?
    who registers or licenses a pay-loader or skid?

    In one sentence you going off on all of the "new shiny trucks" them you say there plowing with rust buckets?

    The sky is not falling! It's the same as it ever was... Devo... lol same as it ever was
  11. Wicked500R

    Wicked500R Senior Member
    Messages: 394

    I was runnin' a Case 580 hoe at a Home Depot a few years ago....The wind blew one of the overhead doors off the tracks. The store manager thought I ran into the door and that I did it..No way I hit this door....The store manager and the security police officer who is a township cop come outside...The cop asks me for my license, registration and insurance...I tell him sorry pal, I have no registration and insurance. This machine was hauled here with a truck and trailer and anything would be covered under the business insurance...There was nothing he could do...After a huge argument and review of the security cameras...The regional manager said there was no way I hit that door! Moral of the story is that you don't need to be registered and such to plow on "private property"....
    Last edited by a moderator: Nov 17, 2007
  12. LawnProLandscapes

    LawnProLandscapes PlowSite.com Addict
    Messages: 1,129

    alls you need in nys is an agriculural triangle to run a loader/tractor/skidsteer down a road. a truck/car/van is a different story, im not sure about private lots here though.. but im also sure many businesses here would not fly very well with having "junk" sitting in there lot.