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plowing price policies

crew

LawnSite Member
Location
St. Paul,MN.
Anybody wish to reveal their pricing policy?I plow over two inches and double the rate over six and double again at twelve. Is this typical? Is there another way? Thanks for any comments.
 

Lazer

LawnSite Bronze Member
We price it by the season.<p>Your fixed costs:<br>You buy a $35k truck which needs to be paid for regardless of snow. You pay insurance, shop rent, advertising & administrative costs, which are fixed. You pay for monthly phone/cellular & pager service. Your municipal licenses are paid. You put on new snow tires each year. You need to place marker stakes whether it snows or not.<p>Most importantly, YOU need to get paid on a regular basis.<p>What fluctuates w/ snow? The amount of fuel? Cutter-edge wear? Those things are minor in the big picture.<p>My customers pay for me to be available and ready to plow when needed. It's like the fire department, you pay for men/machines/resources to be ready to go.<p>I understand different parts of the country work differently, but when 80% of your costs are fixed, why charge per time?
 
OP
C

crew

LawnSite Member
Location
St. Paul,MN.
Your approach makes sense on one level but here in the midwest the snowfalls can vary alot.Call me foolish but it's kind of a nice when those big snowfalls create some big $$.
 
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