# Need help pricing please



## EarthshapesLLC (Aug 7, 2018)

Hey everyone, 
I'm new to the forum but have been following it for quite sometime. I've been snow plowing for around 5 years now mostly doing residential and very small commercial parking lots. I'm looking to build upon my business and take on some larger accounts. 

With that said I'm looking for a few seasoned guys for some advice. I have an opportunity on a really nice parking lot literally down the street from my business operations. The parking lot is roughly 5000sq/ft. My contract will consist of snow plowing, shoveling out the entrance door and two side doors. Salting/sanding will be a separate as it may not always be required per request of client. 

Can anyone help a brother out- I dont want to over bid or of course under bid.....what price tag would you guys put on it??? I have a number in my head but I want to see if it will match with you guys. I'd preferably like to charge either per push or lump sum but ANY suggestions will be considered! 

Things to take in mind:It can be done with my F250 w/ 8' fisher and a laborer in i guess 35min with 2" accumulation. Also, snow will remain onsite and there is minimal obstacles. 

Thanks in advance for the help, your advice is valued!


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## leolkfrm (Mar 11, 2010)

beware of the liability you face if customer determines ice control


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## Sawboy (Dec 18, 2005)

Add the costs of all your labor, fuel, and set aside for repairs and upgrade. 

With five years experience, you’ll certainly know how long this will take you to plow. 

Take the costs, add them up, tack on the profit you’d like to make in an hour, and you have your rate right there.


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## Mr.Markus (Jan 7, 2010)




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## Randall Ave (Oct 29, 2014)

I have something like that, I'm there 15 minutes, 85.00.


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## agurdo17 (Sep 15, 2011)

Randall Ave said:


> I have something like that, I'm there 15 minutes, 85.00.


Same old deal. Depends on area. I get 40 to plow that. Probably another 10 or 15 to shovel. But I'm in a snowbelt. We plow a lot so cost is not as high per plow.


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## Arrowbrook99 (Oct 22, 2017)

If you are doing commercial accounts and have a business I would form a corporation as apposed to an LLC if you haven’t already. Benifits are nothing is attached to you personally in the event of a law suite. As far as pricing that all depends are the going rate for your area. I’d charge $120 per hour by me.


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## Jacobmb (Dec 3, 2013)

If you pay your shoveler $20/hr and you pay yourself as the driver $40/hr and you service the lot in 30 mins - 40 times throughout 5 month contract your basic labor cost is about $1200 for the season. Add 20hrs of fuel - say $500 and you need $1700 to break even for this operation, so quote anything higher than $340/month (for 5 month contract) to make make any profit.

That being said, I would quote the lot at $440/month (30%markup) for a 5 month contract including plowing at 1" and shoveling as you mentioned and I would charge $160 per tonne of salt - which is billed at the end of each month and due the following. Also, salt application should be determined by the contractor NOT the client, based on YOUR discretion using current ground temperature and ambient air temperature and future weather forecast. If the season is mild you win on the plowing contract price and if its not you can balance out with profit made on salt usage.

At these prices you can afford to plow 14 times per month before going broke if you want to look at it that way.

Don't believe anything I say - I plow residentially and am Canadian.


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## JMHConstruction (Aug 22, 2011)

Jacobmb said:


> If you pay your shoveler $20/hr and you pay yourself as the driver $40/hr and you service the lot in 30 mins - 40 times throughout 5 month contract your basic labor cost is about $1200 for the season. Add 20hrs of fuel - say $500 and you need $1700 to break even for this operation, so quote anything higher than $340/month (for 5 month contract) to make make any profit.
> 
> That being said, I would quote the lot at $440/month (30%markup) for a 5 month contract including plowing at 1" and shoveling as you mentioned and I would charge $160 per tonne of salt - which is billed at the end of each month and due the following. Also, salt application should be determined by the contractor NOT the client, based on YOUR discretion using current ground temperature and ambient air temperature and future weather forecast. If the season is mild you win on the plowing contract price and if its not you can balance out with profit made on salt usage.
> 
> ...


I sure wish my only costs were exactly what I pay an employee an hour, and fuel...


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## Randall Ave (Oct 29, 2014)

agurdo17 said:


> Same old deal. Depends on area. I get 40 to plow that. Probably another 10 or 15 to shovel. But I'm in a snowbelt. We plow a lot so cost is not as high per plow.


I do the lot next to it, takes me maybe 8-10 minutes. So it works. And they are one mile from my shop .


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## Jacobmb (Dec 3, 2013)

JMHConstruction said:


> I sure wish my only costs were exactly what I pay an employee an hour, and fuel...


As per the original post the OP has a route and an established business. I am assuming his current operations covers his business overhead and that he is not just relying on this job alone to break even. This is in addition to his normal operation because it's close to his HQ.

Oh and thanks for your contribution!


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