# Pricing too high? Or just other ppl not wanting to make money?



## PlowWestern (Oct 31, 2013)

Ok talked to one of my potential customers. Gave him my thoughts on what the 3/4 acre parking lot should be done at. I told him $60. He replies that the last guy was doing it for $30. Am I just wayyyy to high on this or is the other guy just wayyyyyyyy to low? Also the other guy isn't around to do it and his lot was only plowed 3 times last year. I really don't think anyone else is gonna take it on for less than 60 this late in the year but maybe i'm wrong.


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## 1olddogtwo (Aug 6, 2007)

Both to low.


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## PlowWestern (Oct 31, 2013)

Basically I've been told try to get a $1 a minute I figured 60 I was gonna be over a $1 a minute but would give me room if I ran into trouble there's no way that guy could make money at $30 kinda turns me off on doing the lot for anything less than 60


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## djagusch (Oct 15, 2007)

Tell the guy "well maybe that's why the last guy isn't plowing anymore". Tell him you want to be around to service the properties years to come but won't be around at that pricing. He will either understand or find the next guy who will be out of biz in a yr.


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## R&R Yard Design (Dec 6, 2004)

$1 a min. Wow that's what we are at for mowing. Plowing is $2 a min nothing less. We do a acre lot and get 320 for it.


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## PlowWestern (Oct 31, 2013)

lol that's funny and i'm worried about being too high.. People complain about pricing in this area on everything but they don't realize that it could be worse and way more expensive. My philosophy is basically to sit on it and if he calls me he calls me if not oh well not like I need this to feed my family. I'm small the snowplowing is just me it's not like I have employees. I'm not gonna tear my truck up and work for next to nothing


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## grandview (Oct 9, 2005)

This must be in Erie Pa.


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## PlowWestern (Oct 31, 2013)

grandview;1662374 said:


> This must be in Erie Pa.


Pretty close how'd you guess??? Lol


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## Wilnip (Oct 4, 2011)

Your pricing is on line for our area, western pa . We can't get $150/ hr like CT or NJ. People forget that you have different prices in different markets.


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## tuney443 (Jun 25, 2006)

Wilnip;1662381 said:


> Your pricing is on line for our area, western pa . We can't get $150/ hr like CT or NJ. People forget that you have different prices in different markets.


I certainly didn't forget but Pa. is NOT some 3rd world nation.Doing a 3/4 acre parking lot for between $30-$60 is just spinning your wheels [no pun intended].


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## Sawboy (Dec 18, 2005)

tuney443;1662393 said:


> I certainly didn't forget but Pa. is NOT some 3rd world nation.Doing a 3/4 acre parking lot for between $30-$60 is just spinning your wheels [no pun intended].


I wouldn't get out of bed for that


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## Wilnip (Oct 4, 2011)

$60 for 45 min worth of work is $90/hr, incase your calculator isnt working. Loader with push boxes get less around here. 
And he didn't say he was doing it for $30.


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## Wayne Volz (Mar 1, 2002)

Take the guess work out of it completely. Calculate your company's cost per hour + markup + value of what you are doing. With all due respect put some value in the service that we all offer.

Snow & ice management bidding package www.profitsareus.com


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## Buswell Forest (Jan 11, 2013)

3/4 of an acre for $60?

What does a 30' driveway cost? $4?


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## grandview (Oct 9, 2005)

tuney443;1662393 said:


> I certainly didn't forget but Pa. is NOT some 3rd world nation.Doing a 3/4 acre parking lot for between $30-$60 is just spinning your wheels [no pun intended].


Well we may just have to start a thread about that.


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## PlowWestern (Oct 31, 2013)

wow guys didn't mean to stir up a bunch of trouble over that! lol the area i'm in you got two guys that pretty much control the majority of the things in the area. no workers comp insurance and puts anyone who will work for peanuts in there trucks easy to keep costs down that way


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## Buswell Forest (Jan 11, 2013)

PlowWestern;1662458 said:


> wow guys didn't mean to stir up a bunch of trouble over that! lol the area i'm in you got two guys that pretty much control the majority of the things in the area. no workers comp insurance and puts anyone who will work for peanuts in there trucks easy to keep costs down that way


I do a 3/4 acre+ lot, paved, some jacking around to get the nooks and crannies, @ $150 each time I drop the blade. up to 4" of snow takes me about 35 minutes, more snow takes 45 minutes to an hour depending.

Just because you will only plow it 3-5 times, don't mean you should do it for nothing. Stick to your price, let him call. If he does, tell him it went up by $20.


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## snowpro44 (Oct 31, 2013)

Hold your ground!!!death too the lowballers!!lol..the bank will own his equipment...


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## nighthawk117 (Nov 29, 2008)

Wilnip;1662381 said:


> Your pricing is on line for our area, western pa . We can't get $150/ hr like CT or NJ. People forget that you have different prices in different markets.


Does that mean that your trucks cost half of what others do, how much a gallon is your fuel, half? Is your insurance rate half of what others pay? I find it comical that many of you guys try to justify your low rates do to a geographical location :laughing: . After doing this for over 20 years I have seen the rates that some charge absolutely ridiculous and a shot in the dark when bidding properties. I will be spending my winter on the slopes this year Thumbs Up


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## Dogplow Dodge (Jan 23, 2012)

nighthawk117;1662677 said:


> Does that mean that your trucks cost half of what others do, how much a gallon is your fuel, half? Is your insurance rate half of what others pay? I find it comical that many of you guys try to justify your low rates do to a geographical location :laughing: . After doing this for over 20 years I have seen the rates that some charge absolutely ridiculous and a shot in the dark when bidding properties.


Been trying to figure this out myself.

With the overhead alone, I can't see working to just work, although it seems to be what is currently the trend. I'd rather do the few jobs that will pay me, and go home and enjoy the winter wonderland with my wife and puppies....


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## RLM (Jan 12, 2006)

nighthawk117;1662677 said:


> Does that mean that your trucks cost half of what others do, how much a gallon is your fuel, half? Is your insurance rate half of what others pay? I find it comical that many of you guys try to justify your low rates do to a geographical location :laughing: . After doing this for over 20 years I have seen the rates that some charge absolutely ridiculous and a shot in the dark when bidding properties. I will be spending my winter on the slopes this year Thumbs Up


You aren't taking into consideration that a guy in NJ or NH will get 20-30 hours to distribute his fixed costs (truck pmts., insurance, etc.) into where the guy in western PA gets 200 hrs to distribute those same fixed costs into.


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## Buswell Forest (Jan 11, 2013)

RLM, I don't follow?


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## peteo1 (Jul 4, 2011)

PlowWestern;1662378 said:


> Pretty close how'd you guess??? Lol


Because we have every jackass in town willing to plow for a six pack and two big macs.


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## Wilnip (Oct 4, 2011)

I do just fine here in my little neck of the woods. I can never understand how people can give pricing advice when they are several states away. And yes, costs are different here. I have to shake my head when I see how much people on the cost are paying for insurance. Guess that's why I never ask for advice in this site anymore.


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## RLM (Jan 12, 2006)

Buswell Forest;1662694 said:


> RLM, I don't follow?


Take your truck payment of say $ 600/month
x12 months total of $ 7200/year if you only plow for 4 trips per year (@ say 4 hrs per trip) that means you only have 16 hours to distribute that $ 7200 across. Meaning the truck alone costs you $ 450/hour. Now take that same $ 7200 distribute it across 35 trips (@4 hrs), In say a market like Erie, Pa that gets 200 + inches a year. That same truck goes to $ $ 51.43/hr ($ 7200/140 hrs).


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## RLM (Jan 12, 2006)

Wilnip;1662697 said:


> I do just fine here in my little neck of the woods. I can never understand how people can give pricing advice when they are several states away. And yes, costs are different here. I have to shake my head when I see how much people on the cost are paying for insurance. Guess that's why I never ask for advice in this site anymore.


That's very smart. Years ago (back when I joined here almost 15 years ago) we took pricing advise, I bid of ton of work & got nothing, it wasn't appropriate for my market. Bidding takes experience, you need to know your market & know if the numbers work for your situation. For instance if your in a highly competive market & it's a part time deal for you, you may find your better off to work overtime in the end.


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## Buswell Forest (Jan 11, 2013)

Wilnip;1662697 said:


> I can never understand how people can give pricing advice when they are several states away.


Because someone asked.


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## PlowWestern (Oct 31, 2013)

Buswell Forest;1662887 said:


> Because someone asked.


I've see. It as pretty educational honestly.


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## nighthawk117 (Nov 29, 2008)

RLM;1662790 said:


> That's very smart. Years ago (back when I joined here almost 15 years ago) we took pricing advise, I bid of ton of work & got nothing, it wasn't appropriate for my market. Bidding takes experience, you need to know your market & know if the numbers work for your situation. For instance if your in a highly competive market & it's a part time deal for you, you may find your better off to work overtime in the end.


Bingo, here in lies the difference between owning and running a business, and some guy in a truck with a plow hanging off the front parked at moms house. It's seems that most of the " need a price " questions come from the latter !


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## Buswell Forest (Jan 11, 2013)

Right? Because you started out in the business with a full and complete understanding of all aspects, from what coffee to drink right up to how much an hour for a 30 acre lot.

Of course people are asking because they DON'T KNOW. We can help, or we can post smart azz crap that doesn't help anyone.


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## Dogplow Dodge (Jan 23, 2012)

Buswell Forest;1662947 said:


> ....We can help, or we can post smart azz crap that doesn't help anyone.


Or you could be like Grandview and post smart azz crap that helps :laughing:

He makes me laugh...... and I hear it lowers cholesterol ......Thumbs Up


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## BC Handyman (Dec 15, 2010)

Dogplow Dodge;1662971 said:


> Or you could be like Grandview and post smart azz crap that helps :laughing:
> He makes me laugh...... and I hear it lowers cholesterol ......Thumbs Up


X2 Like Thumbs Up


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## nighthawk117 (Nov 29, 2008)

Dogplow Dodge;1662971 said:


> Or you could be like Grandview and post smart azz crap that helps :laughing:
> 
> He makes me laugh...... and I hear it lowers cholesterol ......Thumbs Up


X3 Thumbs Up , surprised GV hasn't chimed in yet


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## Wilnip (Oct 4, 2011)

nighthawk117;1662982 said:


> X3 Thumbs Up , surprised GV hasn't chimed in yet


He's probably pouting because the Steelers beat the Bills.


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## Jguck25 (Oct 30, 2009)

RLM;1662787 said:


> Take your truck payment of say $ 600/month
> x12 months total of $ 7200/year if you only plow for 4 trips per year (@ say 4 hrs per trip) that means you only have 16 hours to distribute that $ 7200 across. Meaning the truck alone costs you $ 450/hour. Now take that same $ 7200 distribute it across 35 trips (@4 hrs), In say a market like Erie, Pa that gets 200 + inches a year. That same truck goes to $ $ 51.43/hr ($ 7200/140 hrs).


here in central nh i bet we get close to the same amount of hours as you guys.. not the 30 hours you said, i do that in a storm or two


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## RLM (Jan 12, 2006)

Jguck25;1663075 said:


> here in central nh i bet we get close to the same amount of hours as you guys.. not the 30 hours you said, i do that in a storm or two


I was using that as an example, not picking any one site just pulling numbers. We get 100 inches as an average, my trucks average 100 hrs a year of prime plowing here.....but I have guys that get 300 hrs because they pick up "after hours routes". So even my example has variables in distributing those costs....I just consider the "after hours stuff" bonus money. 
Local economics also play into pricing. In myarket when I started all the big excavating, roadwork, paving type contractors did all the big parking lots, in the last 10-15 years those lots have been taken over by landscape/lawn contractors doing work for less than 1/2 what the excavators were getting.


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## missbhaven (Nov 14, 2013)

PlowWestern;1662318 said:


> Ok talked to one of my potential customers. Gave him my thoughts on what the 3/4 acre parking lot should be done at. I told him $60. He replies that the last guy was doing it for $30. Am I just wayyyy to high on this or is the other guy just wayyyyyyyy to low? Also the other guy isn't around to do it and his lot was only plowed 3 times last year. I really don't think anyone else is gonna take it on for less than 60 this late in the year but maybe i'm wrong.


I hear that all the time, the other guy does it on the side and he's only avaiable after hours to plow. stick to your $60.00


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## tpendagast (Oct 27, 2012)

the next time a bid goes out, I think I'm going to literally write on the price line, "Six pack and two big macs"

There is always some yahoo that out bids me, so it's not like I'm going to get it anyway... the bids just get lower and lower every year.

I just looked at about 15 RFPs this year and didn't even batt an eye at them, didn't put in a price, didn't go the to the pre-bid... I felt like Cap'n Jack sparrow.... "I LOVE those moments, I like to wave at them as they pass me by!" 
Ive also thought about deliberately losing money on one of these bids by going in at $1. Just so some can tell me "how ridiculous my bid is" so I can say, "so has yours been for the past 5 years".


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## grandview (Oct 9, 2005)

You guys don't need my help here!


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