# Is this a GOOD way to price??



## JandA (Dec 17, 2008)

I have heard many different ways to price salt application....please let me know all of your thoughts on this pricing, as I am a newbie this year...

1 acre = 43,560 square feet.

I have been told (by many) that we should consider 1 acre to equal 500lbs of salt (10 bags for those of us without bulk salt).

If I charge (from what I can understand is the average) $17.00 per pag, then one acre of salt should run $170.00. That seems way too low.

Before I send out proposals, what if I charged by the square foot at 1%....for example, if an acre equals 43,560 feet, then I would charge $435.60 (which seems more in the ballpark, or am I way off?).

Couple of examples:

22,000 square feet = $220.00
76,775 sqare feet = $767.75
19,500 square feet = $195.00

I wouldn't leave my shop without a minimum of $100, so anything less than 10,000 square feet gets the minimum of $100.

By the way, I charge $75 per hour for plowing in addition to the salt application....

Your thoughts please???

[email protected]

1995 Chevy 1 ton, Meyer 7.5, tailgate spreader
1989 Ford 1 ton, Meyer 7.5, V-Box spreader


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## scottL (Dec 7, 2002)

Pricing depends upon your area, material delivery and availability.

For instance $17 bucks a bag is nearly ideal on paper. But, you have to stay with in some limits of bulk pricing which is still cheaper. So, now your more around $10-$12 at best.

Your plowing price is low so, some will figure your higher price on salt is ok as they will believe they will not need much salt.

There are a number of good posts in the last few months on calculating salt need - just a little searching.


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## elite1msmith (Sep 10, 2007)

ill put it too you like this.... it all depends on the size of the property and who your bidding against

i will not salt a lot for less than 75 bucks... that being said, that is a VERY SMALL LOT. But, a 1 acre parking lot, which is about the size of a resturant for example, the max i could charge is 160-180 or so

and that would be using about 700 lbs on average


i know alot of contractors that are spreadign large lots at 160 per ton, ... so a 10 acre parking lot , they might only charge 500 bucks or so


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## JandA (Dec 17, 2008)

Ok, I am starting to get an idea...Looks like if I use the 1% method, I will be too high...


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## JDiepstra (Sep 15, 2008)

Yes the 1% method is way too high. By the way I have a "partner" with a larger snow plowing company in the area and they salt a lot that is a hair smaller than 1 acre for me for $98.


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## JandA (Dec 17, 2008)

Ok, thanks for the info. I always heard that the money is in the salt, not plowing the snow. I probably went overboard on pricing....got the $ signs in my eyes!

I'll still play around with the numbers to see if there is a "magic" number that will work for all size lots...


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## JDiepstra (Sep 15, 2008)

JDiepstra;701876 said:


> Yes the 1% method is way too high. By the way I have a "partner" with a larger snow plowing company in the area and they salt a lot that is a hair smaller than 1 acre for me for $98.


Ha I meant partnership, not partner.


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## clark lawn (Oct 7, 2005)

if you charge 17 per bag applied thats 170-40 for product=130 for 10-15 minutes of work that is about 500-600 per hour i think that would be conisered good money


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## Runner (Jul 21, 2000)

I CAN tell you this....If you are going on 500# to cover an acre, this is WAY n the light side. Over the years,...time and time again, our average for a normal temp and after plowing, effective rate (without going too heavy) is 20# per M (1000). This is with dry bagged salt. Now, obviously, in market values, an acre lot of approx. 44 M is going to go for less than 4 lots of 11 M. No one up here is going to spend $264 every time their 1 acre lot gets salted, let alone just over a grand for a 4 acre lot. So yeah,...there is definitely some pro-rating that has to occur.


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## naturalgreen (Dec 6, 2008)

i do st. louis and i would say u are a little low
i charge about same for salt but your amount is low
mainly we get alot of saltings and a few big snows so u need to make some money off the salting
i get most of mine with this pricing
however u need to rethink how much salt u will be using a true acre of lot will put u over 700 here
we get thick ice that lasts forever if u go light on salt


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## naturalgreen (Dec 6, 2008)

clark lawn;702241 said:


> if you charge 17 per bag applied thats 170-40 for product=130 for 10-15 minutes of work that is about 500-600 per hour i think that would be conisered good money


its wicked here u are assuming he can go once and get it gone
15 min is a dream
get a good contract because you will be back in an hour when it rains then freezes again during same storm


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## Turbodiesel (Aug 5, 2008)

Something to chew on for the newby.

Lets say for instance ......you've salted in 8* degree temps , the salt is not working . The customer is on the horn crying . Whats your next move ? 

Stipulate these items and situations before diving in . 

Situation #2 There is a blizzard on the way . Calling for 18-24" with drifts . Are machines stipulated ? If so , who , what , where , when and how $$ ?

GET 'er done wesport


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## JandA (Dec 17, 2008)

More good info...thank you! I agree that St. Louis gets many more salt opportunities than snow and that is why I want to get the pricing right. $75 per hour for plowing is OK with me, because I think we will only plow 7-10 times a year, and that is on a good year. We see alot more sleet and freezing rain....

As far as the 8* temps, I have calcium chloride built into my contract. I charge double for calcium, mainly because I have not found a cheap source around here. Basically supply and demand for the calcium. Natural Green, if you know of a source for either salt or calcium, I am listening!

We don't see too many snows over 10". I can only think of 3-4 times we have had that much snow since 1982, when we had what we would call a monster that gave us 22". We had one last year that gave us around 11-12 inches....nothing like you guys see up north. If it DOES happen, though, I have subs that have the backhoes, skid steers, all the earth moving equipment if needed. Haven't built that into my contract...probably should.

Thanks again for helping out the new guy.....I don't want to hurt the industry with my ignorance!


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## naturalgreen (Dec 6, 2008)

where r u located i can give u a few places but this time of year prices have changed
ice melt can be found alot of places earlier now it is just a matter of finding when next shipment comes in


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## JandA (Dec 17, 2008)

Naturalgreen...I am in the Overland area...


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## naturalgreen (Dec 6, 2008)

overland huh
scotts lawn care on olive
im not big on overland thats north co. right.
they r decent for salt and expensive for ice melt
buchheit in st. chuck for ice melt cheaper


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## clark lawn (Oct 7, 2005)

naturalgreen;702425 said:


> its wicked here u are assuming he can go once and get it gone
> 15 min is a dream
> get a good contract because you will be back in an hour when it rains then freezes again during same storm


so they get billed again i had a place last year were we had to go every 4 hours and clean up and salt it made for a long week since they worked from 11 pm sunday till 11 pm friday and were zero tolarence.


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