Snow Removal Pricing; By the Inch vs. By the Pass
11/22/10
Article by: Wayne Volz, Profits Unlimited
Pricing by the inch or by the push, what's the best way to do it? First and foremost I don't think it's a wrong or right choice either way. I think you should ask yourself what works best for you and your company. There are advantages and disadvantages to both. If you are charging by the inch who's measuring the snow and where are they measuring it? When we charged strictly on a per inch basis we sometimes had issues with our clients on how much snow was actually plowed. The plant manager lived several miles away from the facility and he knew he did not have five inches of snow at home. But his invoice for the service at his building said five inches of snow was plowed. When in fact there was five inches of snow on the lot. As you know, snow is like rain, you can have more or less accumulation in a very tight area.
Pricing by the inch or by the push, what's the best way to do it? First and foremost I don't think it's a wrong or right choice either way. I think you should ask yourself what works best for you and your company. There are advantages and disadvantages to both. If you are charging by the inch who's measuring the snow and where are they measuring it? When we charged strictly on a per inch basis we sometimes had issues with our clients on how much snow was actually plowed. The plant manager lived several miles away from the facility and he knew he did not have five inches of snow at home. But his invoice for the service at his building said five inches of snow was plowed. When in fact there was five inches of snow on the lot. As you know, snow is like rain, you can have more or less accumulation in a very tight area.
Per push pricing can be a very profitable way to plow snow based on the trigger points for your clients, the equipment being utilized and the efficiency of your operators. However, if you are going to charge on a per push basis, be sure to have a maximum amount of snow that will be pushed on a per push basis included in your contract. Otherwise, if you have a heavy snow event that comes through over a short period of time you may lose many profit dollars. Also, think about the events during the day that you can only clear entrances and drive lanes. Partial plows may be best billed on a per hour basis with a minimum of one hour. Maybe the best answer for most contractors is a combination of pricing structures to be in play on any given account.
Remember, you can't put a price on safety!
If you would like to increase confidence in your snow & ice management bidding, check out Snow & Ice Management Bidding Package.
Includes:
#1 Snow & Ice Management Manual - this is a comprehensive manual covering all aspects of snow & ice management for both residential and commercial accounts. Also includes application rates for many different deicing materials.
#2 Snow & Ice Management CD full of over 20 templates for contracts, route sheets, hours of operation sheets, Who's first, proposal formats, don't take the risk template for clients, sample invoices, sample marketing forms and much more. All these templates are in Microsoft Word format and are completely customizable to your business.
#3 Snow & Ice Management Quick Estimator CD - calculates per push, per event, hourly or season contracts. Also calculates material application rates for both granular and liquid applications for any deicing material that you may be using. This CD also calculates time and material for application of material, and hand labor as well. This CD runs in Microsoft Excel and is not software. You simply fill in the blanks and you have your estimate.
Articles provided by: Wayne Volz
Profits Unlimited
Profit is not a dirty word!
www.profitsareus.com
800-845-0499
Remember, you can't put a price on safety!
If you would like to increase confidence in your snow & ice management bidding, check out Snow & Ice Management Bidding Package.
Includes:
#1 Snow & Ice Management Manual - this is a comprehensive manual covering all aspects of snow & ice management for both residential and commercial accounts. Also includes application rates for many different deicing materials.
#2 Snow & Ice Management CD full of over 20 templates for contracts, route sheets, hours of operation sheets, Who's first, proposal formats, don't take the risk template for clients, sample invoices, sample marketing forms and much more. All these templates are in Microsoft Word format and are completely customizable to your business.
#3 Snow & Ice Management Quick Estimator CD - calculates per push, per event, hourly or season contracts. Also calculates material application rates for both granular and liquid applications for any deicing material that you may be using. This CD also calculates time and material for application of material, and hand labor as well. This CD runs in Microsoft Excel and is not software. You simply fill in the blanks and you have your estimate.
Articles provided by: Wayne Volz
Profits Unlimited
Profit is not a dirty word!
www.profitsareus.com
800-845-0499
