# How much to charge for my first big commercial account



## Thatplowguy (Sep 23, 2016)

Hello, 
I have been plowing mostly residential accounts, and a few small commercial accounts here in Northern New England for almost 5 years now. I have the opportunity to bid on my first big commercial account and need help on how much to charge and what to expect. It is a storage unit facility that has 9 buildings ranging from about 130' to 200' long with plenty of places to put snow, and only one retaining wall to worry about. I will have all of the equipment for the job, just now sure how much to charge. Trigger is 3" and plowed every 2" after. Not sure if this is enough info, but do appreciate the help in advance. Thanks!


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## Philbilly2 (Aug 25, 2007)

You should start us with a cost... we are not going to do the bidding for you.


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## dieselss (Jan 3, 2008)

29.99.......


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## Thatplowguy (Sep 23, 2016)

Philbilly2 said:


> You should start us with a cost... we are not going to do the bidding for you.


A cost as far as, what it will cost me to do it? I'm going to apologize in advance, because in sure I sound like a noob, I've just never had to bid on an account this big before. 
Thanks!


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## John_DeereGreen (Jan 2, 2011)

What's it cost you to run your truck/whatever you're plowing it with?

Storage unit facilities suck the big one to plow without either a v plow or skid and push box


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## Philbilly2 (Aug 25, 2007)

OK. Give us an idea of what type of equipment you have to start with.

As stated above, storage units are a b*tch for lack of better words with the correct equipment. They are typically fenced in and you only have so many places to stack a whole season of snow. I know you say that there are tons of spots, but as you are new to these, you will find very quickly that when you are doing more than a drive, the snow amounts in a hurry and you rapidly run out of room.

Without a box or a v plow, you will be chasing your ****** trail for hours as you cannot windrow in between buildings.


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## Randall Ave (Oct 29, 2014)

dieselss said:


> 29.99.......


Plus a six pack of Bud!


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## Randall Ave (Oct 29, 2014)

Sorry for the other one, put up a picture of the place. What equipment do ya have? Do you have commercial insurance yet?


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## MSsnowplowing (Nov 1, 2012)

Thatplowguy said:


> Hello,
> I have been plowing mostly residential accounts, and a few small commercial accounts here in Northern New England for almost 5 years now. I have the opportunity to bid on my first big commercial account and need help on how much to charge and what to expect. It is a storage unit facility that has 9 buildings ranging from about 130' to 200' long with plenty of places to put snow, and only one retaining wall to worry about. I will have all of the equipment for the job, just now sure how much to charge. Trigger is 3" and plowed every 2" after. Not sure if this is enough info, but do appreciate the help in advance. Thanks!


compare the commercials you do now with that one.

How much bigger is it?

How much time does it take you to do said Com. Lot's and figure out the time it will take you to do the bigger one and factor in a longer time due due to the alleyways, unless you are using a v plow or skid with a snow box.

example:
your two com. lots take you 1 hour each and you charge 100 for the first 3 inches and 75 thereafter every 2"

This place will take you 2 hours so you charge 200 for the first 3 and 150 thereafter every 2"


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## Thatplowguy (Sep 23, 2016)

First off, Thankyou for all of the responses already!
Okay so, it won't let me upload a pic from my phone of the storage it. What should I include for what it cost me to run my equipment? I added in the employees and gas for the trucks. I will be using a 1 Tom with dump body, and a 3/4 ton both with 8 1/2' and 9' v plows, and a Toyota Tundra with a 7 1/2' straight blade. It costs me $55 an hour to run my trucks. Also there are no fences except at the entrance. Everything else is woods that have been cut back 20-30 feet back from the road. There are only 3 spots I can't push snow. I will try to upload a pic from my computer when I get home. Also I do have commercial insurance


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## MSsnowplowing (Nov 1, 2012)

Thatplowguy said:


> First off, Thankyou for all of the responses already!
> Okay so, it won't let me upload a pic from my phone of the storage it. What should I include for what it cost me to run my equipment? I added in the employees and gas for the trucks. I will be using a 1 Tom with dump body, and a 3/4 ton both with 8 1/2' and 9' v plows, and a Toyota Tundra with a 7 1/2' straight blade. It costs me $55 an hour to run my trucks. Also there are no fences except at the entrance. Everything else is woods that have been cut back 20-30 feet back from the road. There are only 3 spots I can't push snow. I will try to upload a pic from my computer when I get home. Also I do have commercial insurance


post the location and we can google it.
I for one would like to see a storage place that requires that much equipment.
I did a 7 building storage place with the same runs and only used my 1 ton with a vblade.


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## Randall Ave (Oct 29, 2014)

Send the picture to your computer. Then post it. You may have to resize it.


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## SFCarmyvet (Sep 12, 2016)

Thatplowguy said:


> A cost as far as, what it will cost me to do it? I'm going to apologize in advance, because in sure I sound like a noob, I've just never had to bid on an account this big before.
> Thanks!


I am having trouble figuring out bidding as well. I think I have figured out that it cost me 33 dollars an hour to just run my equipment. Then I think you have to look in your area and figure out what your area is charging. Then you have to look at how much salt you will need, where you will get it, how much it will cost you. How long will it take you, I have read storage units can be time consuming and pose complications. Then you have to figure out what you want to charge as an hourly rate. LOL, I am still missing a lot of pieces. So I am still researching to make sure I do not low ball my fellow plow guys in my area and keep the market up. Plus I would like to make sure I do not throw a bunch of bids that are too high out there. I figure this will be my year to learn.


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## Randall Ave (Oct 29, 2014)

If you think it only costs 33 an hour to run your equipment. You have no employees I take it.


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## 98Chevy2500 (Nov 27, 2005)

Randall Ave said:


> If you think it only costs 33 an hour to run your equipment. You have no employees I take it.


Or equipment repairs yet!


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## ktfbgb (Jan 31, 2016)

I'm no where near you but in my area subs are charging $75 an hour for a HD truck with a 8.5 foot V blade and at least $100 an hour for same set up if they run their own accounts. That does not include if you have a salter in the bed of your truck. 
$65 an hour for a blower
$45 per man hour for hand shovelers


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## SFCarmyvet (Sep 12, 2016)

98Chevy2500 said:


> Or equipment repairs yet!


Owner operator brand new truck and plow


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## SFCarmyvet (Sep 12, 2016)

SFCarmyvet said:


> Owner operator brand new truck and plow


I could have figured the cost to operate wrong.


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## ktfbgb (Jan 31, 2016)

SFCarmyvet said:


> I could have figured the cost to operate wrong.


Well it's new so you you have to figure in the payment for the truck, the payment for the plow if you have payments, if not then at least depreciation, commercial auto insurance which is usually a lot more than personal auto, normal maintenance like oil changes for the truck and the plow, fuel, general liability insurance, registration. Then you have operating cost. Then figure out paying yourself, overhead costs to run the business like advertising, phone, internet, electricity, etc. and then finally figure out profit margin on top of all that. That's the hourly price you need to charge.


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## SFCarmyvet (Sep 12, 2016)

ktfbgb said:


> Well it's new so you you have to figure in the payment for the truck, the payment for the plow if you have payments, if not then at least depreciation, commercial auto insurance which is usually a lot more than personal auto, normal maintenance like oil changes for the truck and the plow, fuel, general liability insurance, registration. Then you have operating cost. Then figure out paying yourself, overhead costs to run the business like advertising, phone, internet, electricity, etc. and then finally figure out profit margin on top of all that. That's the hourly price you need to charge.


I will thoroughly figure that number today. I used some app that I found where I plugged all that information in and it shot a number back out at me.


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## FredG (Oct 15, 2012)

I


SFCarmyvet said:


> I will thoroughly figure that number today. I used some app that I found where I plugged all that information in and it shot a number back out at me.


I would try to base the truck and plow for $75.00 Per hr. $33.00 would be alright for your pocket. I have no idea if that will put you in a competitive range in your area.


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## SnoFarmer (Oct 15, 2004)

@33hr, what you paying the guy to operate your equipment?

And hopefully your not bidding it by the hr.


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## SFCarmyvet (Sep 12, 2016)

FredG said:


> I
> 
> I would try to base the truck and plow for $75.00 Per hr. $33.00 would be alright for your pocket. I have no idea if that will put you in a competitive range in your area.


No I would never charge that. That was a number I came up with using an app of how much it cost just to run my truck out of my pocket with no profit.


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## SFCarmyvet (Sep 12, 2016)

SnoFarmer said:


> @33hr, what you paying the guy to operate your equipment?
> 
> And hopefully your not bidding it by the hr.


No no no, lol that was a number I came up with for the cost it will cost me just to operate my truck without any profit. Just to turn the baby on a push some snow. I will be paying that much to do it.


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## Mark Oomkes (Dec 10, 2000)

Why doesn't anybody answer this guy? It's so simple a caveman to do it.

OP, charge whatever it takes to cover overhead, labor and your desired profit. 

How difficult was that?


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## Mark Oomkes (Dec 10, 2000)

ktfbgb said:


> I'm no where near you but in my area subs are charging $75 an hour for a HD truck with a 8.5 foot V blade and at least $100 an hour for same set up if they run their own accounts. That does not include if you have a salter in the bed of your truck.
> $65 an hour for a blower
> $45 per man hour for hand shovelers


Never happening aroond me.


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## LapeerLandscape (Dec 29, 2012)

Mark Oomkes said:


> Why doesn't anybody answer this guy? It's so simple a caveman to do it.
> 
> OP, charge whatever it takes to cover overhead, labor and your desired profit.
> 
> How difficult was that?


I would tell him but I dont have an app for that. Just not enough common sense these days.


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## SFCarmyvet (Sep 12, 2016)

LapeerLandscape said:


> I would tell him but I dont have an app for that. Just not enough common sense these days.


I do not think you guys understand what i was saying. It was 33 dollars just to turn my truck on. That is what it cost me in my pocket to use the thing to push any snow. That was with no profit, zero profit.


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## SFCarmyvet (Sep 12, 2016)

LapeerLandscape said:


> I would tell him but I dont have an app for that. Just not enough common sense these days.


Which makes sense to me if it cost me around 40 bucks just to use my truck how would I make any money subbing for 70 bucks an hour give or take if it cost me more than that just to run my truck?


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## SFCarmyvet (Sep 12, 2016)

From my ample amount of research what I have learned is everyone has there own way of figuring out their bottom line. There operational costs and profit margins. What works for one guy may not work for the next. Some use hourly rates to figure it out and some use do it a completely different way as in total cost and total amount needed to hit a profit. I do not think you should attack my common sense for that. I would not attack yours for not understanding what I was saying.


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## ktfbgb (Jan 31, 2016)

SFCarmyvet said:


> Which makes sense to me if it cost me around 40 bucks just to use my truck how would I make any money subbing for 70 bucks an hour give or take if it cost me more than that just to run my truck?


Here's the other thing that's going to hurt you for covering your truck cost. It escalates your number compared to mine because my truck is used for my company all year long. It's my company truck for my construction business. So spreading out my operating cost over the entire year makes it much lower to operate per hour compared to you only operating it for snow storms. It's making me money all year every day of the work week so since you are doing this as a second income with your personal truck it makes the numbers skewed. Same with GL insurance and commercial auto. You have to take those out just to plow a few times a year where as I spread it out all year as I have a GL and commercial auto policy for my business with additional snow removal and slip and fall coverage added to what I already have to have anyway so again my insurance costs are way lower than yours. It's a catch 22. Your going to have to figure out how much it actually costs to run the truck for the season to see if you can in fact make any money at all. If you are true to yourself and actually look at the numbers objectively you may find that you can't make any money and it may cost you money to plow.


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## SFCarmyvet (Sep 12, 2016)

ktfbgb said:


> Here's the other thing that's going to hurt you for covering your truck cost. It escalates your number compared to mine because my truck is used for my company all year long. It's my company truck for my construction business. So spreading out my operating cost over the entire year makes it much lower to operate per hour compared to you only operating it for snow storms. It's making me money all year every day of the work week so since you are doing this as a second income with your personal truck it makes the numbers skewed. Same with GL insurance and commercial auto. You have to take those out just to plow a few times a year where as I spread it out all year as I have a GL and commercial auto policy for my business with additional snow removal and slip and fall coverage added to what I already have to have anyway so again my insurance costs are way lower than yours. It's a catch 22. Your going to have to figure out how much it actually costs to run the truck for the season to see if you can in fact make any money at all. If you are true to yourself and actually look at the numbers objectively you may find that you can't make any money and it may cost you money to plow.


I am using the truck for business profit all year long as well. So my numbers only calculated the truck payments in those four snow months.


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## ktfbgb (Jan 31, 2016)

SFCarmyvet said:


> I am using the truck for business profit all year long as well. So my numbers only calculated the truck payments in those four snow months.


Ah ok. Must have been thinking of the other guy on the tread Thumbs Up


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