# Bulk salt mark up %



## Funkytrailjunky (Dec 28, 2019)

Looking to get some feedback regarding bulk mark-up percentages. I want to make sure I am staying competitive with other guys in the game.....and or not pricing myself out. 2,3 400%??

I am honestly near the 3-400% rate. (if your curious)

I understand we all operate our businesses a bit differently (overhead / cost /eq./ location etc. etc.) but I would just like some feedback on what you guys are marking up your balk salt per ton applied. 

This dead horse has probably been beating well before, but all posts I have found are either outdated or "how do I run my business" type ****. 

Thanks guys!


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## m_ice (Aug 12, 2012)

What is your cost of doing business and what do you want your profit to be? That will answer what it should be.


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## Funkytrailjunky (Dec 28, 2019)

I appreciate your reply, but this does not answer my question.....

As mentioned, I understand everyone has differing operating expenses as well as profit expectations/margin. I am not looking to pass judgement, only compare as a frame of reference. 

Ballpark percentage was all I was curious about. I would love to see where I fit as a small business owner in the scheme of owner operator to large fleet operations. 

I understand one's hesitancy to discuss pricing on an open forum. If this is the case, please disregard my post. I am not looking to offend or step on any toes.


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## m_ice (Aug 12, 2012)

I understand what you're asking as it's been asked a million times on here. Everything is regional and I personally don't care what my competitors are charging.


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## Mark Oomkes (Dec 10, 2000)

I would say you're in the correct ballpark.

Others would say you're lowballing. Wish I was them.


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## Funkytrailjunky (Dec 28, 2019)

m_ice said:


> I understand what you're asking as it's been asked a million times on here. Everything is regional and I personally don't care what my competitors are charging.


I can respect that.


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## Ajlawn1 (Aug 20, 2009)

Mark Oomkes said:


> I would say you're in the correct ballpark.
> 
> Others would say you're lowballing. Wish I was them.


Low balling at 3-400%! Wow, I need to be in your market...


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## Mark Oomkes (Dec 10, 2000)

Ajlawn1 said:


> Low balling at 3-400%! Wow, I need to be in your market...


If I had your salt money I'd throw mine away.


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## m_ice (Aug 12, 2012)

Funkytrailjunky said:


> I can respect that.


How many events do you get?


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## Funkytrailjunky (Dec 28, 2019)

m_ice said:


> How many events do you get?


About a dozen (plowable events)......give or take in a season. We average roughly 25 inches of snow per season, but over the last five years we have seen a couple seasons with almost double that number.


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## BossPlow2010 (Sep 29, 2010)

Mark Oomkes said:


> I would say you're in the correct ballpark.
> 
> Others would say you're lowballing. Wish I was them.


Until you knew who "them" was…


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## Kman2298 (Dec 24, 2015)

I buy mainly bulk salt and charge most people per application and some customers "per bag" TBH most customers have no idea how much salt you threw . I try to bill out 1000 dollars a yard for salt. ( I pay 140 a yard)...... Usually though it comes out to something like 500-750 but Im working on getting the pricing up.


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## SnowHampshire (Nov 8, 2020)

Mark Oomkes said:


> I would say you're in the correct ballpark.
> 
> Others would say you're lowballing. Wish I was them.


400% still low for some guys? Resi and commercial?


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## SnowHampshire (Nov 8, 2020)

Kman2298 said:


> I buy mainly bulk salt and charge most people per application and some customers "per bag" TBH most customers have no idea how much salt you threw . I try to bill out 1000 dollars a yard for salt. ( I pay 140 a yard)...... Usually though it comes out to something like 500-750 but Im working on getting the pricing up.


Driveways, commercial or both? Do you have a spreader or do you spread by hand?


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## Kman2298 (Dec 24, 2015)

SnowHampshire said:


> Driveways, commercial or both? Do you have a spreader or do you spread by hand?


Only Commercials. I mainly do small commercial lots( think 1500-4000 sq ft) I have a tailgate salter that uses bulk salt . For most of my customers I charge "by the bag" Usually I just estimate how much salt I use but I charge 25-40 a bag depending on the customer. Figure one ton of salt costs me 150 . So every 50 pounds of salt costs me roughly 4 dollars in bulk. 
So if I drop 200 lb of salt on a property. I am charging for 4 bags which would be 100-160 depending on the customer and my internal cost would be less than 20 bucks.

I do have some customers where I charge per application and some seasonals where I am factoring salt into the overall price. I find the best approach is to buy salt in bulk and charge as if your using bags.


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## SnowHampshire (Nov 8, 2020)

Kman2298 said:


> Only Commercials. I mainly do small commercial lots( think 1500-4000 sq ft) I have a tailgate salter that uses bulk salt . For most of my customers I charge "by the bag" Usually I just estimate how much salt I use but I charge 25-40 a bag depending on the customer. Figure one ton of salt costs me 150 . So every 50 pounds of salt costs me roughly 4 dollars in bulk.
> So if I drop 200 lb of salt on a property. I am charging for 4 bags which would be 100-160 depending on the customer and my internal cost would be less than 20 bucks.
> 
> I do have some customers where I charge per application and some seasonals where I am factoring salt into the overall price. I find the best approach is to buy salt in bulk and charge as if your using bags.


Does the tailgate spreader stay on the whole season or do you take it on and off between events?

I'm right along there with pricing $20/bag for a couple neighborhood customers...$25/bag for the rest. SHOULD be charging $30/bag but if I tried that I'd have zero customers wanting salt.


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## Kman2298 (Dec 24, 2015)

SnowHampshire said:


> Does the tailgate spreader stay on the whole season or do you take it on and off between events?


 Im lazy I keep it on from November-March . I also fill the bed of my truck with a one ton bag filled halfway with rock salt.

I wont take on a commercial contract unless I have the salting included ( at my discretion). Most commercials want your insurance to cover slip and falls so if Im servicing a site and Im covering the slip and fall insurance I want to be able to salt at my discretion and not wait for a property manager to call me.

I had a Buffalo Wild Wings complain to me this year cause I charged them for a lot of saltings in January. I explained to them politely that If they want me to service their property, I will salt when I see fit or they can waive my responsibility for insurance, and if they have a problem with that they could find another contractor.


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## Treeboy (Nov 8, 2017)

I only do schools and churches its a lot of walks prob mile plus. And its complicated lots of back tracking parking lots are small 100+ steps. I charge $1,600. Total to salt i buy in bulk but charge by the lot and sections of walks. I use about 700lbs max sometimes 500lbs treated w IBG. They want it cleared with the bare minimum amount so that saves me a lot of salt. And while i do save salt its endless directions for the guys and can get exhausting and takes hours with the rtv and a push salter. If i was doing just a parking lot i would do $250 ton or $150 minimum.


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## SnowHampshire (Nov 8, 2020)

Kman2298 said:


> Only Commercials. I mainly do small commercial lots( think 1500-4000 sq ft) I have a tailgate salter that uses bulk salt . For most of my customers I charge "by the bag" Usually I just estimate how much salt I use but I charge 25-40 a bag depending on the customer. Figure one ton of salt costs me 150 . So every 50 pounds of salt costs me roughly 4 dollars in bulk.
> So if I drop 200 lb of salt on a property. I am charging for 4 bags which would be 100-160 depending on the customer and my internal cost would be less than 20 bucks.
> 
> I do have some customers where I charge per application and some seasonals where I am factoring salt into the overall price. I find the best approach is to buy salt in bulk and charge as if your using bags.


I agree. I wish I could charge a bit more for salt but I'm lucky to even have anyone that will pay for it at all. I base my cost on what a 50lb bag costs at home depot or wherever...$10 bucks 1 bag minimum.


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## Kman2298 (Dec 24, 2015)

SnowHampshire said:


> I agree. I wish I could charge a bit more for salt but I'm lucky to even have anyone that will pay for it at all. I base my cost on what a 50lb bag costs at home depot or wherever...$10 bucks 1 bag minimum.


I have a couple customers who are really cheap and renegotiated salting prices with me. One beat me down from 250/per application to 150. What he doesn't realize is that now I use half the amount of salt I would normally use on his property and I end up having to salt twice so he isnt saving any money doing that!


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## Kvston (Nov 30, 2019)

That’s our theory. Some people try to be “smart” and worm you down-I don’t take those sites anymore. Others hear “we do what’s best for you” and are happy to pay.

Example: We took on a small HOA this year who has 9/10 mile road to plow and treat. They said they wanted the right service. Been some questions this year trying to learn, and som cheapness on their part. So I’ll switch them to a seasonal, prepaid, next year or I won’t bring them back.

Second example. I have several residentials who say: “you are the expert. DO what you do the way you want.” They will stay and not complain about salting rates.

Who would you rather work for?

The markup is what it is. There is not a surplus of labor, equipment, skills. Charge accordingly because you are a professional.


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