# General Bidding



## Drewcifer (Feb 7, 2015)

Plowing $$
Salting $$

hey guys im new here but not to the business of winter work. i have been working with my current boss now for about 6 to 7 years but i kinda wanna branch off on my own a bit. I have a 2000 Ford Excursion with a 8 foot arctic plow on it and am looking for a small spreader for the back. 

My question is whats a good average rate to work with when bidding on a job i don't wanna be cheep but i don't want my service to be unreachable either. so just general information would be useful to me for plowing and salting,

thanks for any help or input you give. 
By the way i live in Ontario Canada xysport
and my boss is tight lipped about his rates


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## Wayne Volz (Mar 1, 2002)

*Help bidding*

I see many post about bidding jobs. Here's your solution.
Have you ever asked yourself what you should charge for a job? All businesses need a solid foundation. Your bidding is the foundation of your company. If you want to gain the confidence to know why you charge what you charge for any service that you offer and never second guess yourself again, check out our bidding package on our web site.
I gives you a simple, accurate, and professional method to determine your company's cost per hour of operation based on your equipment, use-rates and overhead. Not an industry standard. The only thing good about an industry standard is a good laugh. Trying to run your company based on anything other than your company's cost is a sure bet to lose profit and to eventually put yourself out of business. How do I say this with such conviction, because we almost did it. I will share with you the changes that we made in 1987 that turned our company from a zero to a hero!
This package also includes how to take your cost per hour of operation and put it into an effective bidding methodology for anything as simple as a residential lawn to bidding a large corporate account. You will gain the confidence necessary to submit a fair and profitable proposal to secure the contract. It also explains why a service agreement is good for both you and your clients both residential or commercial. The information shared in this package can actually catapult your business to the next level regardless if you are a one-truck operation or a multi-crew company. These four manuals and CD include our 35 years of experience and knowledge as a commercial contractor. Put it to work for you.
Thanks again for the opportunity. http://profitsareus.com/…/bidding-estimating-contracts-pac…/


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## Drewcifer (Feb 7, 2015)

well not to be rude but this was incredibly un-helpfull. all you tried to do was sell me a product....


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## beanz27 (Dec 22, 2012)

Depends on area, seems the farther north the lower the rate. More snow=lower hourly rate generally. That being said I'm in ND and typical rate is $65-75 hour depending on blade size and a v plow or not.


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## Herm Witte (Jan 27, 2009)

Drewcifer;1952180 said:


> well not to be rude but this was incredibly un-helpfull. all you tried to do was sell me a product....


Although you did not like Mr. Volzs reply he explained a basic to you that you need to listen to. That basic is that you need to arrive at your cost of doing business to arrive at billing rates, not someone else's numbers. By the way those numbers vary greatly throughout Canada and the US. Spend a little time with an accountant or purchase a product to help you start up. You have a bit of time to get it right before next season.


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## Wayne Volz (Mar 1, 2002)

*Thanks for helping*

Mr. Witte - Thanks for helping explain how I was honestly trying to help the young man. The documented failure rates for our industry is a sure sign of why you can't simply ask someone else what to charge. With all due respect to everyone on here, here's why you should know your own numbers. I realize many of you guys understand but this is for those that don't.

It really is this simple on why you should use your own equipment, use-rates and overhead to determine pricing. Regardless of the equipment you use such as Western, Boss, Blizzard, Meyer, etc. all of those manufacturers know what it cost them to build a plow. Can we agree on that? If so, then why shouldn't you as a contractor know what it cost "YOU" to offer your service. The right answer is you should. Regardless of what anyone else charges, you are responsible for determining your own break-even point and then add mark-up based on what your market will bear and your desired profit margin. I don't have a big picture of Boss calling up Meyer and asking what they should charge for their plow.


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## peteo1 (Jul 4, 2011)

Regardless of what anyone else charges, you are responsible for determining your own break-even point and then add mark-up based on what your market will bear and your desired profit margin. I don't have a big picture of Boss calling up Meyer and asking what they should charge for their plow.[/QUOTE]

This should be required reading before ever posting on this site. "How do I price this" threads are just ridiculous


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## Drewcifer (Feb 7, 2015)

alright i can understand this  so then my question becomes how do i search for what my market can bear ??
also whats the blizzard clause ?? ( found it on the site )
I figured out PITA and i like it 

i have plowed for 6 or 7 years now but no clue on stuff like this. im literly blind in all this....

from what i can find my city average in 76.5 inchs (194 cm) per year with 4 storms of 4 inchs (10 cm) in a day
all the info is based on stats from 1981-2010

thanks guys i may be a pain but ill learn yet  tymusic


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## Herm Witte (Jan 27, 2009)

Drewcifer;1952802 said:


> alright i can understand this  so then my question becomes how do i search for what my market can bear ??


So this question leads me to believe you just want to charge what others charge (or just under) to get you in the game. That information will not guarantee profitability for you. Knowing your cost of doing business, knowing average area snowfall, knowing average frequencies of service, and knowing production rates all will play a significant part in coming up with your cost of doing business. Once you arrive at your cost and what you need to charge (not what someone else charges) you will be able to make an informed decision on whether or not to continue moving forward. Please do your homework.


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## allagashpm (Sep 29, 2012)

Figure out your over head. Figure out replacement costs for equipment. Figure how long it takes to do a job. Figure out what you need to cover the above plus a profit


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## navyman (Dec 1, 2013)

Here is what I always say... charge what the contractors charge and you won't diminish the industry profitability, don't underbid them much and you will probably still get the job...or worse.... do it for half and work 80 + hours a week to make what you could make in forty...this is what has happened to the Mow industry. Everyone who lost their factory job is now mowing and charging half what a professional contractor can do it for and as a result we contractors are mowing for the same hourly rate we were 20 years ago. This is my 28th year, and I am about done, the green industry has turned into a mom and pops business. and likely the snow industry also, wait a minute the snow industry has always been the beer money "GIG" lol!


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## Drewcifer (Feb 7, 2015)

navyman;1953234 said:


> Here is what I always say... charge what the contractors charge and you won't diminish the industry profitability, don't underbid them much and you will probably still get the job...or worse.... do it for half and work 80 + hours a week to make what you could make in forty...this is what has happened to the Mow industry. Everyone who lost their factory job is now mowing and charging half what a professional contractor can do it for and as a result we contractors are mowing for the same hourly rate we were 20 years ago. This is my 28th year, and I am about done, the green industry has turned into a mom and pops business. and likely the snow industry also, wait a minute the snow industry has always been the beer money "GIG" lol!


ummmm beer


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## Drewcifer (Feb 7, 2015)

i know to figure out my overhead and how long to do a job and amounts of snow per year ive learned that here in the last week or so but all this info wont tell me if my market area can handle my price and if it cant then what cut my price and work for peanuts ???

some how i need to find some going rates for/in my area so i can include it into all my research correct ??


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## Herm Witte (Jan 27, 2009)

If your market can't handle your price, don't get in the game. I am surprised that after six or seven years of plowing you are clueless to pricing. Are you profitable as a sub? If so why change, if not why are you subbing. Being a sub is also a business.


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## navyman (Dec 1, 2013)

unless you are in China I don't see how you can keep above water for less than $85 p/hr. as a business. However ,if you have no overhead i.e. insurance, State and Federal taxes, shop and all associated expenses, fig. your gas, replacement costs of equip. (what will it cost to replace or fix your truck and associated equipment...? can you buy a beater for $4000 or less? at any given time? in case your current truck pukes. most repairs are typically $4000 and less. So can you make enough each time to replace equipment or just buy beer? Your truck will do $40 per hour worth of work your talent is worth what ever you think it is worth. I wouldn't take anything less than $25 p /hr for my expertise and I get much more (I have 28 yrs exp.) If you are experienced you should charge at least $65 p/ hr. And I wouldn't do any drive for less than $25 that's a minimum even if it only takes 10 minutes. So there , do you have something to go by now? Good luck, I was once where you are now but had no social media to help me.


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## Drewcifer (Feb 7, 2015)

Herm White

yes i have been plowing for a landscape company for 6-7 years however my boss never lets us in on his prices or how he even bids his work. i have heard from customers hes a bit expensive but he and his workers are good so they eat the cost for good work but i my self have never bid anything cause i had no clue what to bid and had no equipment anyways i do now. all i have learned in the past week or so has been from this form page. i have also never done any sub work but id be open to it after my regular work was complete. thanks for the advice and help though i have got some pointers from you to 

navyman

did some one say beer ??
thank you this is some general information im looking for. i have been doing some digging around my area to try and find some local prices to see maybe what an high low average could be to see the market trend for this area. so far not much luck but im gonna dig around some more tomorrow to see what i can find. in the mean time these are some numbers to consider and see where im at and im sure i should convert those numbers to canadian dollars....not that theres much of a difference now LOL

must find local markets some where i would think 

thanks again guys


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## Mike N (Dec 21, 2008)

navyman;1953234 said:


> Here is what I always say... charge what the contractors charge and you won't diminish the industry profitability, don't underbid them much and you will probably still get the job...or worse.... do it for half and work 80 + hours a week to make what you could make in forty...this is what has happened to the Mow industry. Everyone who lost their factory job is now mowing and charging half what a professional contractor can do it for and as a result we contractors are mowing for the same hourly rate we were 20 years ago. This is my 28th year, and I am about done, the green industry has turned into a mom and pops business. and likely the snow industry also, wait a minute the snow industry has always been the beer money "GIG" lol!


Where is the "like" button for this post?


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## navyman (Dec 1, 2013)

mike n;1953436 said:


> where is the "like" button for this post?


you pushed it! Lol!


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## Drewcifer (Feb 7, 2015)

http://www.snowvac.com/

now this is awesome !!!!!


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