# Starting my own Company



## 04fivefour (Jan 14, 2013)

My wife and I would like to start our own snow removal company. Our family has many different businesses so the legal side would be taken care of pretty well. I really just need to know the ins and out of the business its self.

1. How do you determine pricing? Do you call a few local companies and see what the going rate is? Is there a difference in commercial and residential pricing? Do you charge by the hour or area? What constitutes an emergency rate?

2. How do you get new clients? Do you send fliers or just stop in to places and leave a card? 

3. At what point do you start plowing? Here in Ohio it usually snows for hours at a time. Should you wait until it stops or plow multiple times?


I am going to have a bunch more question I just can't remember them all right now. 


Thanks in advance!


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## grandview (Oct 9, 2005)

question #4, I have/have not plowed before.


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## dieselss (Jan 3, 2008)

So your gunna have plows and tks. Or are you basically gunna be a paper company?


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## goel (Nov 23, 2010)

Go work for someone else and learn the ropes. 

Just saying I want to start a company is a great way to fail.


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## TKLAWN (Jan 20, 2008)

Yeah, go sub or work for a local reputable company for Atleast one season and learn as much as you can then decide from there if you still what to go ahead with it. Plowing can be difficult on yourself and your family.


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## maxwellp (Feb 16, 2013)

1. How do you determine pricing? *.5-3 , 3.1-6 , 6.1-9 , over 9 inches per hr. That would be a local market thing, it is all over the place, I get $90 hr, But average 2x that on bid prices*

Do you call a few local companies and see what the going rate is? *You could, I do not. I am told I am high. So I know I am good *

Is there a difference in commercial and residential pricing? *Yes, here I get 2-3 times more for Residential , but you have to get out and do hand work.*

Do you charge by the hour or area? *Area / unless over 9 inches*

What constitutes an emergency rate? *I don't have one I am full , they are SOL*

2. How do you get new clients? *WEB Site linked with Google, sign by the road*

Do you send fliers or just stop in to places and leave a card? *No, tried flyers 1% return rate, I let them come to me*

3. At what point do you start plowing? *Depends on how much it will snow, time of day, kind of snow, how long it snows ..............I just let 5" pile up last night but it was Sunday and very light snow. if it was wet snow I would have been out at 2"*

Here in Ohio it usually snows for hours at a time. Should you wait until it stops or plow multiple times?*depends on what you sold for service*


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## NBI Lawn (Oct 15, 2007)

While I understand starting involves many questions and can me difficult I'm not sure you're asking the proper questions. You say you or family owned many businesses...obtaining customers, determining prices, advertising, etc, is basically the same formula for any business. They may be your best bet for those questions. 

Every area has much different prices so unless you find someone on here from the area you plan to service your pricing will not most likely not be competitive. On a side note, i have never heard of an "emergency rate".

Like others have said you are MUCH better off working for someone before diving into your own business. I assure you it's not as glamorous as it seems


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## Sawboy (Dec 18, 2005)

Grandviews #4 question is a great question, and I feel that subbing for someone a couple years is the best learning there is.


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## South Seneca (Oct 22, 2010)

When to plow really depends on what the customer needs too. I have many retired folks who don't care if the snow accumulates overnight. They just want to be able to get out in the morning. I don't plow them until just before daylight unless we are really getting hammered with snow. Then I open them up during the night and go back in the morning and clean up where the road plows plugged the end of the driveway and put the finishing touches on the driveway.
During the hours when folks want to get out I plow on a 3" trigger.


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## 04fivefour (Jan 14, 2013)

grandview;1679196 said:


> question #4, I have/have not plowed before.


I have plowed before, I worked at a car dealership and had to remove a lot of snow.


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## 04fivefour (Jan 14, 2013)

dieselss;1679217 said:


> So your gunna have plows and tks. Or are you basically gunna be a paper company?


Not sure what you mean by this.


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## 04fivefour (Jan 14, 2013)

TKLAWN;1679314 said:


> Yeah, go sub or work for a local reputable company for Atleast one season and learn as much as you can then decide from there if you still what to go ahead with it. Plowing can be difficult on yourself and your family.


I appreciate the advice, I have plowed before but have never been on the behind the scenes side of it. There is not really a way that I could go join anyone because I manage one business during the day.


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## TKLAWN (Jan 20, 2008)

^^think he means trucks.


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## 04fivefour (Jan 14, 2013)

maxwellp;1679372 said:


> 1. How do you determine pricing? *.5-3 , 3.1-6 , 6.1-9 , over 9 inches per hr. That would be a local market thing, it is all over the place, I get $90 hr, But average 2x that on bid prices*
> 
> Do you call a few local companies and see what the going rate is? *You could, I do not. I am told I am high. So I know I am good *
> 
> ...


Thanks for the input. This is the information I am after.


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## 04fivefour (Jan 14, 2013)

TKLAWN;1679887 said:


> ^^think he means trucks.


What does he mean by "be a paper company"?


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## 04fivefour (Jan 14, 2013)

NBI Lawn;1679462 said:


> While I understand starting involves many questions and can me difficult I'm not sure you're asking the proper questions. You say you or family owned many businesses...obtaining customers, determining prices, advertising, etc, is basically the same formula for any business. They may be your best bet for those questions.
> 
> Every area has much different prices so unless you find someone on here from the area you plan to service your pricing will not most likely not be competitive. On a side note, i have never heard of an "emergency rate".
> 
> Like others have said you are MUCH better off working for someone before diving into your own business. I assure you it's not as glamorous as it seems


Well our businesses are in the accounting and finance world so our client base is a little bit different. But that's what I am trying to find out is how others have got their clients. We have a marketing program that brings in most of our new clients at our other business but you are right about things being the same formula. Just have to find a way to connect with the potential customers.

Starting a new company is always a scary/tough thing to do but I know I can do it. I'm not wanting a large scale operation either. It's just going to be me and my buddy. So i'm only going to have a minimal amount invested.


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## 04fivefour (Jan 14, 2013)

South Seneca;1679640 said:


> When to plow really depends on what the customer needs too. I have many retired folks who don't care if the snow accumulates overnight. They just want to be able to get out in the morning. I don't plow them until just before daylight unless we are really getting hammered with snow. Then I open them up during the night and go back in the morning and clean up where the road plows plugged the end of the driveway and put the finishing touches on the driveway.
> During the hours when folks want to get out I plow on a 3" trigger.


Thanks for the input. I figured it would mostly be what the customer wants type basis.


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## FurFishGame (Jul 21, 2013)

04fivefour;1679890 said:


> What does he mean by "be a paper company"?


 i believe he means, are you doing the plowing your self, and running the buisness end of it, or just running hte buisness end and hireing sub contractors to do the plowing?


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## Dogplow Dodge (Jan 23, 2012)

Paper contractors don't use tools other than their office supplies and their brains. They hang up the tool belt so that others can do the physical activities.


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## poopdeckpappy (Oct 31, 2009)

If you wanna push snow, make a decision early on about how much extra time you have in order to satisfy contracts and keep your customers happy. Limiting yourself to between 5-10 lots per truck, depending on your skill level can keep your customer base willing to sign on with you the next season.While your redoing his contract, his buddy might need a bid also!! Remember that storms come during the day also. It only takes one failure to lose a customer.

If you want to learn about pricing in your area.Look in the phone book and set appointments with plow guys in your area. Go to a lot which would be comparable to what you are wanting to do and get their prices for that lot. Not only will you be able to compete, you will also be able to determine how pricing in your area is done. Some could easily frown upon such a thing, but there's nothing wrong with being smart in business and competitive. I do free estimates year round and consider it a means to an end. If you don't sell jobs you don't work.
When it comes to finding willing customers to sign you have alot of options. A business card handed to a potential client in person speaks volumes. Hit the bricks and the fast food joints in August or September in order to put your name early in the minds of clients. Around here most clients are signed on by the end of October. 
Last but not least, tell your clients that you do competitive pricing and could possibly meet or beat the prior years contract pricing. If they give you their numbers for last season, ask to look at a copy of the contract. If they are not willing to show you, you must redirect and use your initiative in order to seal a deal. With competitive pricing, top notch service, and good equipment, you will more than likely succeed.


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## rbljack (Dec 9, 2013)

I am following this one also. I have a full time job from 4pm till early am 4 times a week. I stared doing lawns during the day and have turned that into a business already. Now its winter and I thought I was done for the season, and got a call from a management company asking if I would be able to spread salt. One thing leads to another and now Im doing all this research to see if I can do this plow and spreading of icemelt/sand/salt during the winter and be profitable. Note my location too....because its NOT exactly in the snow belt..LOL.

There are so many variables to how people do the business it seems. Because I have a full time job, using the two inch (or any other trigger) may be a problem because I cant leave one job to do another. Id have to price based on simply plowing when I can. The good news is id be available from early am until early afternoon each day, so there IS some time to do commercial lots before the businesses open and the parking lots fill up. Im also hoping that might allow me to get the salt down early in the day after plowing so the sun can melt down the remaining snow or ice. Not sure if my theories will work out, but that's my initial thinking. Ill be continuing to follow this post and as many others as I can find related to the topics. 

Thanks to all of you who provide reasonable answers to our "newb" questions. Ill be following this one as well because I have some similar questions...and am taking in as MUCH info as possible. Side note, as I sit here, I just heard the east coast is getting pounded by snow. Congrats to all of you who are hopefully tearing it up right now!


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## poopdeckpappy (Oct 31, 2009)

Hey rbljack. If you started your own thread, befitting to your specifics. You could get your answers sooner rather than after it's snowing. If I were you though, i'd google avg. yearly snowfall for your location, then make a judgement after doing some math ie., overhead versus income. Good luck.


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## goel (Nov 23, 2010)

04fivefour;1679880 said:


> I have plowed before, I worked at a car dealership and had to remove a lot of snow.


Terminology is huge. We do snow Plowing under contract. Snow removal or relocation is always done by request at additional expense.


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## 04fivefour (Jan 14, 2013)

poopdeckpappy;1680705 said:


> If you wanna push snow, make a decision early on about how much extra time you have in order to satisfy contracts and keep your customers happy. Limiting yourself to between 5-10 lots per truck, depending on your skill level can keep your customer base willing to sign on with you the next season.While your redoing his contract, his buddy might need a bid also!! Remember that storms come during the day also. It only takes one failure to lose a customer.
> 
> If you want to learn about pricing in your area.Look in the phone book and set appointments with plow guys in your area. Go to a lot which would be comparable to what you are wanting to do and get their prices for that lot. Not only will you be able to compete, you will also be able to determine how pricing in your area is done. Some could easily frown upon such a thing, but there's nothing wrong with being smart in business and competitive. I do free estimates year round and consider it a means to an end. If you don't sell jobs you don't work.
> When it comes to finding willing customers to sign you have alot of options. A business card handed to a potential client in person speaks volumes. Hit the bricks and the fast food joints in August or September in order to put your name early in the minds of clients. Around here most clients are signed on by the end of October.
> Last but not least, tell your clients that you do competitive pricing and could possibly meet or beat the prior years contract pricing. If they give you their numbers for last season, ask to look at a copy of the contract. If they are not willing to show you, you must redirect and use your initiative in order to seal a deal. With competitive pricing, top notch service, and good equipment, you will more than likely succeed.


This is the stuff I like to hear, I have always been in the service industry so keeping my clients happy is my top priority constantly. I got pretty lucky as well because my previous neighbor (we just Moved) does plowing too. I was talking to him just picking his brain and he has contracts that are too far away for him but they are close to me that he is going to give me and kind of work together. The ones that I find in his neck of the woods i'll pass off to him and vise versa. I don't plan on running a huge operation and I had already planned on only trying land a few clients so that I can keep up and fully service them. I don't want to have too many and have to stress out or do a bad job and lose them.

I really do appreciate everyone's help.


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## 04fivefour (Jan 14, 2013)

goel;1680748 said:


> Terminology is huge. We do snow Plowing under contract. Snow removal or relocation is always done by request at additional expense.


My apologies, We just plowed it to the back not actually removing it from the site.


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## goel (Nov 23, 2010)

04fivefour;1680978 said:


> My apologies, We just plowed it to the back not actually removing it from the site.


No apologies needed. Your here to learn and wording on contracts is important.


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## grandview (Oct 9, 2005)

Biggest difference between you plowing out a dealership and your customers is time. You can monkey around on the car lot,but when someone is paying to plow and be on time and quick, that is a whole different thing.


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## plowguy43 (Jan 2, 2008)

Be ready for the customer who agreed to a 3" trigger to be calling you the day it snows an inch and they are slipping all over the place. Then the other customer who's calling you an hour after you made you first pass during a large storm saying they need you to come back right now because they can't make it into the driveway because of the additional accumulation and town plow truck snow bank.


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## 04fivefour (Jan 14, 2013)

plowguy43;1681076 said:


> Be ready for the customer who agreed to a 3" trigger to be calling you the day it snows an inch and they are slipping all over the place. Then the other customer who's calling you an hour after you made you first pass during a large storm saying they need you to come back right now because they can't make it into the driveway because of the additional accumulation and town plow truck snow bank.


That's the service industry for you. No matter what you do or what business you are in, there will always be people like that. I'm well versed with dealing with these problems.


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## plowguy43 (Jan 2, 2008)

Right, and its no big deal if this is your only business your running on a daily basis. Its when you have other responsibilities to tend to - like a full time job - that makes it difficult. You can't have a customer base depending on your services calling you with these issues, and have the excuse that you are at work and will get to them when you get off your shift.

I tried this myself and made it work for about 3 years - but my job was very leanient and 90% on the road with a supervisor who was based a state away. Even then, it was still a pain and difficult to service customers efficiently.


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## 04fivefour (Jan 14, 2013)

plowguy43;1690189 said:


> Right, and its no big deal if this is your only business your running on a daily basis. Its when you have other responsibilities to tend to - like a full time job - that makes it difficult. You can't have a customer base depending on your services calling you with these issues, and have the excuse that you are at work and will get to them when you get off your shift.
> 
> I tried this myself and made it work for about 3 years - but my job was very leanient and 90% on the road with a supervisor who was based a state away. Even then, it was still a pain and difficult to service customers efficiently.


Yeah I get what your saying. I work full time but its on a kind of "work until its finished basis" Our office hours are 9 to 5 but most of the time im staying later or coming in early so i don't have real stringent hours. Also my boss is my wife so she is understanding about the snow. She is the one who wanted me to do it in the first place.


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## MSsnowplowing (Nov 1, 2012)

plowguy43;1681076 said:


> Be ready for the customer who agreed to a 3" trigger to be calling you the day it snows an inch and they are slipping all over the place. Then the other customer who's calling you an hour after you made you first pass during a large storm saying they need you to come back right now because they can't make it into the driveway because of the additional accumulation and town plow truck snow bank.


Now that hit home. 
Signed a new client this year, we plow at the 3" mark.
I get a call from the VP, "where are you"?
I will be there at the storm end, there is only 1" on the ground and our contract states I plow at 3 inches.
"But last year the other company plowed every 1 inch"
Well I can do that also, but you do understand the contract will have to be rewritten and the price will be much higher.
"How much higher"
Add another $5,000 to the price for plowing every 1 inch.
"Why so high"
Because a one inch trigger means I have to put a truck on site for the entire duration of the storm, so the price reflects this, I can do it, but it costs a lot more.
Silence, then okay thanks, see you at storm end.


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## kg26 (Feb 5, 2013)

Okay, your going to be a rookie so watch this video and learn the ropes. You'll get a good laugh.


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## Mega cab (Aug 21, 2012)

By having a full time job during the day will limit the type of accounts you will be able to manage. Also there is a big difference in plowing car lots then other places. We plow five car lots with 10 major brands but they know they are not #1 on our list. Like Grand view said car lots are slow during a snow storm then say medical shopping condos. 
What about salting are you going to offer this service? The winter is already here you are running out of time almost for this season to pick up work! As other have suggested it might be best to sub for someone for one or two winters. Maybe pick up some of your own driveways to plow on your own. And yes as already mentioned can be very stressful on family if they do not truly understand the hours needed to generate enough money!


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## rbljack (Dec 9, 2013)

kg26;1691028 said:


> Okay, your going to be a rookie so watch this video and learn the ropes. You'll get a good laugh.


funny stuff right there!:laughing:


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