# Price Calculations



## redman6565

Im new to this, so im asking for help. but how do you calculate seasonal prices when some customers want 4 times a week, 5 times a week, once a week, etc. im having trouble figuring out a solid formula to quote prices.


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## cretebaby

they only want to be plowed 4 times a week what about the other 3 days a week

JK i know this is the sweeper forum


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## redman6565

im gonna plow with my sweeper truck :salute:

ill put salt bring in the water tank holder


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## cretebaby

redman6565;630256 said:


> im gonna plow with my sweeper truck :salute:
> 
> ill put salt bring in the water tank holder


i would put a plow on the sweeper truck you have a plow on everything else with a motor


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## hickslawns

Do you know where you need your hourly rate to be in order to be profitable or is this what you are trying to figure out? If you are already sweeping, then seasonal shouldn't be too hard. If they want 4 times per week, then 4 x 52 weeks x price per visit. Little more info I guess or a little more sleep on my part and I will re-read later.


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## redman6565

cretebaby;630318 said:


> i would put a plow on the sweeper truck you have a plow on everything else with a motor


touche my friend, touche. i take pride in the versatility of all my machinery. someday ill figure out how to plow with my big 619 scraper and my large excavators wesport


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## redman6565

hickslawns;630465 said:


> Do you know where you need your hourly rate to be in order to be profitable or is this what you are trying to figure out? If you are already sweeping, then seasonal shouldn't be too hard. If they want 4 times per week, then 4 x 52 weeks x price per visit. Little more info I guess or a little more sleep on my part and I will re-read later.


i think i want to be at around 85.00 per hour. now these lots are only a couple miles away from my shop. but with seasonal calculations, i always thought that they would be cheaper than straight up hourly rates...


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## hickslawns

Good luck! I know pricing is variable per region, but I just lost 2 large ones this week to someone. Guy bids for $60 per sweep on accounts that take 2-3hrs.


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## redman6565

wow! thats brutal


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## cretebaby

tha lowballers are worse than in plowing


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## redman6565

and thats sad because there are about a quarter of us sweepers to guys that plow.


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## plowtime1

What the CAM cost of the property? you will always have your lowballers outhere;just keep following up customers to the actual level of service they're getting from this lowballer. It's a shame people will actually leave loyalty for a buck. we dont bother going after litter accounts,not worth the aggravation because anyone legally or not, can park the machine basically in their garage and thus reducing the overhead compared to a normal run business JMO


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## hickslawns

Redman- Brutal is a nice way of putting it. We are talking about an account 35-40 min sw of me. This guy is located another 40 min north of me. He did snag another account from me which would be on the route to the farther store. This would help a little with the travel time, but he is still bidding these accounts around $20/hr without travel time. I don't see how I could do the route without any employees and cover costs at $20/hr let alone figure in something to cover my wages and profit. I don't foresee it lasting. Something will give. Either he will up the cost within a month or so, or his quality will be non-existent, or both. I know times are tough, but I can be a bagger at the grocery store for minimum wage and make more than this guy. In my area it seems the market will bear $40-50 per hour. I like to be in the $50-60 range which will cover my costs and keep us at 10-15% profit margin depending upon what fuel costs are. I don't think this is out of line, but what do I know? I suppose some markets might bear $85/hr but you will know your area better than any of us. Good luck.


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## plowtime1

Phil,
I deal with a company southeast of me (RI) who travels more than 1 HOUR to sweep lots as low as $25.00 for 100,000sqft. lots. Your absolutely right about profit margins, I would need to be around $ 90hr. based on my employee payroll.


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## hickslawns

Plowtime- How do they even stay in business? Have they been around awhile? I mean, I guess I am just hoping the guy snags as many of these as he can, and it takes a month or 2 before he realizes he is broke. It would open up the door to my accounts again, and then some of his as well. I know as of a couple years ago he couldn't swing a couple grand for a used plow. Gee I wonder why? I am surprised he is still around. He just picked up 4 accounts in the area (that I know of) within about a month time frame, so it might be more than he can bite off in this short of span. Fuel jumps back up, tranny goes, hit a deer, any other major change in his market and he just bit it. I still don't know how you can even cover costs let alone make anything.


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## plowtime1

I agree,
we've never really chased that market due to our machines being a-4000 and heavier mechanicals; this in part is operational costs and why we wouldn't consider it. You may want to consider checking out his quality, (a little PI work) and document what actually happening. It all comes down to either cheap labor or owner operator with no overhead. This guy that comes from RI, his vehicles look like @#IT, personally I wouldn't have my name on them. Volume does work though because every added detail outside the scope of work means extra dollars for him. Think about it, if the store manager has a cheaper price but occassionally needs something extra, they will go to him regardless of cost. The reason perhaps is they think the former service provider will tell them to go you no where. By this guys history not being able to by a plow, your absolutely right, just a matter of time; I would keep up the communications with your former clients though.Do you have a level service package as to what they prefer to have done?
I have a few methods in pricing that I put together to land this portion of maintenance for larger corporate accounts when and if we decide night time babbysitting is actually worth it(lol) Your a smart business man and sees whats about to come ahead for this dope. PM me if your interested more.
take care, best of luck


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## redman6565

ya, drive around and take pictures of garbage that's left behind or garbage in the mulch beds, cigarette butts laying all voer the place, then you can justify your rates. thats what i do. then the managers can get a visual.


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## plowtime1

Redman-
Unfortunately sometimes it takes this method, we had to work on a project at a local wal-##rt (no-plugs)lol . I happen to watch the so called "professional" sweep,drove the sweeper to where anything was noticeable,corners were left untouched away from the storefront,only litter cans in front of store were replaced, and whether or not it was agreed upon; the litter was placed in their dumpster. Your previous reply is accurate;furthur more... if it's a densly populated area the contractor does half the work because of general population litter control problems and this excuse guaranteed is utilized by these lowballers.


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## redman6565

that is true. its always a fine line but i found over the years it helps aid your bid if you include pictures. anybody can claim "we do a better job" but the guy that takes the time to walk the lots, show consistency in the other contractor's inconsistencies and include that in your bid and i guarantee your chances have increased.


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## plowtime1

100%...perhaps even more!


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## redman6565

so true, so true


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## bank32

To get in on what you guys are saying. My area use to support 75.00hr rate, it just wont happen any more. 40.-50.hr is the going rate if we are lucky. I dont know what is worse the low ballers or the unscrupulous property managers.


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## Snowshow

I agree, this is crap. I just recently lost a WalMart to a company that stated that they had a sweeper. Come to find out that after they signed the contract, they were running around town looking for someone to sweep it for them because they didn't even have a sweeper. I just don't get it. The guy cut my throat by 20% from what I hear and he got the contract without even owning a machine. Now, I have gone and checked on his work and they are definatley getting what they are paying for. Garbage in the islands, along the curb and curb corners, you name it. My stores never look like this. We take pride in our work and it flames me to think about it. 

Where does it end. Does anyone realize that our sweepers cost around 75k a piece. Does the customer realize that we have to pay an employee 10-15 dollars an hour for decent guy in a uniform that looks professional to service their properties. I am missing something. I guess I should just let our equipment run down or better yet higher a bunch of dope smoking idiots who are more concerned about changing raido channels while they sweep then doing a good old American way - old fashioned "good job." Lets just sell this whole idea out to the lowest bidder and get crap. Thats what this county has come down to, THE BOTTOM LINE. If its cheaper, they don't care about quality or consistancy. I am just a frustrated company owner who goes up an beyond to service their clients and to get kicked in the shins by someone who gets the contract without even owning a sweeping unit for far less money is crazy. Just my .02


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## bank32

Snowshow, No they dont care we make the investment, the risk. Then best of all uncle sam is going to step in and say "spread the wealth". Well i guess i will just have to have to laugh at it all i have to much invested to give in. Just keep trying to get my name out there picking up more lots. Also Snowshow we have a company in my area who on there web site show 5 or so sweeper trucks and don't own one. Give customers great service for a fair price is not good enough these days. Every one needs to stick to there number but it won't and prob can't happen.


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## ComSweep

I won't even start my small sweeper (a 348 I) for less than $70.00 an hour. Now the bigger sweepers like my Whirlwind, no less than $100.00 an hour.


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## bank32

Comsweep I run 2 347i. I wish we can get 70.-75. hr around here anymore. Giving good service is not anough any more. 40.-50. hr and owers/property managers look at the proposal with there head twisted.


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## bank32

Also the upkeep on are sweepers. Don't know were to start.


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## redman6565

i hear ya guys, it is bad. and the economy doesn't help, you would think people would be going out of business but instead, it seems, everyone is spending more to get more diversified and to get their hands in markets they dont belong in...


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## ComSweep

I agree with you redman. We offer Sweeping, Plowing, Ice Control & we sell the T-500. We do not want to do anything else. We quit the Painting & Pressure Washing just becuase to many new people are doing it. We don't need the B-S that goes with that. Half of them don't even cary the proper insurance.


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## redman6565

so true so true


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## redman6565

picked up another contract . got enough work to make the truck purchase worthwhile, now i just need to expand just a little bit so i know i'm making good money


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## plowtime1

Congratulations!

Happy New Year to everyone here!


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## W.F.D. Plower

I charge $85-$95 an hour plus travel time. Most people are ok with that, I explain how much the euipment costs, wages, fuel, insurance, ect.


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## bank32

Wish I could charge travel time. It's also hard in my area when US Maint is 10-15 min from me.


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