What do you think about My Pricing.

Discussion in '<a href=http://www.plowsite.com target=_blank ?>Sn' started by machine, Nov 4, 2000.

  1. machine

    machine LawnSite Member
    from OH
    Posts: 101

    In Cincinnati, Ohio I have a minium price for Residential drives, it is $50 to plow and 8.50 per 25lbs of salt. The drive is done before 8:00am and before 6:00p.m. So that is twice a day for a good storm. Total cost to that one customer for that days work is $124.02 for less than 30 minutes work. I did raise my prices 25% this season, because the steep increase in fuel & oil and the weak wrinter we had last year.

    I am getting my price for prompt and reliable service, Although I know that there are contractors out there charging much less.I hope I am not getting too expensive. We are not in Michigan and only get 3 snowfalls a year if we are lucky.
     
  2. iowastorm

    iowastorm LawnSite Senior Member
    from Iowa
    Posts: 370

    I don't see anything wrong with your prices. You'll know if you're okay if you get customers and they pay your price. If you're offering salt as an extra, then your customers wanting to save a few bucks have the option. Does that include sidewalks too?
     
  3. machine

    machine LawnSite Member
    from OH
    Posts: 101

    iowastorm,
    I do not do any walkways or steps for the Residential custormers, because I would have to charge them as much or higher to do handwork. Many custormers have asked me to do there walkways, which I am very relutant to give them a bid. Although we have large commerical clients and service thier walkways at any extra service charge they are willing to pay. The question here is how do you guys charge Residentail clients for handwork, when time spent shoveling should be time plowing. If I charge $50 for 15 minutes of work(plowing) and it takes me a hour to shovel someones walkway at 5:00a.m., I can't charge $35 to do it. I would have to charge $200, even if they paid that amount I would still be unhappy and cussin up a storm, because I am in hurry to get all my custromers plowed out on time and don't like to get out of that warm cab.
     
  4. iowastorm

    iowastorm LawnSite Senior Member
    from Iowa
    Posts: 370

    Machine,

    We only do a few residential drives and do them for $40, including the walks (no salt). If you can get the $50 w/out walks, I say more power to you. This year, any walks we do, we'll have a seperate crew(s) for that, but are tying to cut down on that by spraying. Hope it works, because walks are a pain.
     
  5. Greenman2ooo

    Greenman2ooo Banned
    Posts: 176

    I think if you do enough residential work, it justifies hiring a shoveler/snowblower to ride along. Also, you could send him on the route in a seperate vehicle so you aren't held up by him. Even if you have only 10 or 15 residential accounts, wait until the end of the route, pick up your shoveler/snowblower employee and knock 'em out. Pay him well. He makes you more money and frees your truck up to earn more as well. More importantly, you provide a service that someone else may be willing to include "for free" as the sales pitch would likely go.

    That's how my pitch would turn once I found out last years contractor didn't do the walks. Some of your competitors may think like me, even if you don't.

    If I was getting $50 for what I envision you are (small drive that 4-6 cars would fit on), I would hire someone to do walks. If not, someone is bound to come and clean up behind you. If it takes the shoveler 6 minutes to do each one, that would cost you $15 for 10 of them at $15/hr.

    Even if we add another 3 minutes for drive time to all 10 theoretical accounts, that is still only $22.50 in wages for 1.5 hours of shoveling/snowblower work. Charge $1 for every anticipated minute your shoveler will be on those small accounts and you won't go wrong. Who isn't willing to pay $5 more to have their walk done? Most sidewalks at these small accounts can be done in 5 minutes or less.

    Your shoveler won't make you rich, but he may give you more security with your accounts, which is a high priority for my business. I'd rather spend 5 minutes keeping a customer than gambling on how long it will take to replace him/her.

    Just food for thought.
     
  6. diggerman

    diggerman LawnSite Senior Member
    from Iowa
    Posts: 702

    I would add to what has been said but all the responses so far have just been so wonderful I don't know what else that I would say,it is taking me so much longer to read these posts these days since I find myself taking so many notes,thank you, thank you, thank you.
     
  7. iowastorm

    iowastorm LawnSite Senior Member
    from Iowa
    Posts: 370

    Digs; it wouldn't hurt for you to spend a little more time on your prayer rug too.
     
  8. diggerman

    diggerman LawnSite Senior Member
    from Iowa
    Posts: 702

    Gee Storm do you really think that'll work,I sure hope so, maybe they'll even like me better,that would be sooo nice.There needs to be a forum here that has the words to all the great happy songs like,"Don't worry be happy" and "Ebony and Ivory"," Cume by yah", and so on.We could all pick a time to sing them and it would be like we were in the same room holding hand and singing,well I guess we can only dream.
     
  9. thelawnguy

    thelawnguy LawnSite Silver Member
    Posts: 2,412

    I generally read every post here; apparently something went sailing waaaayyy overhead...
     
  10. Greenman2ooo

    Greenman2ooo Banned
    Posts: 176

    Lawnguy-

    Digger has somehow gotten ahold of my top 20 favorite songlist.
     

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