What to charge for snowplowing

[JB4310]

What to charge? what ever you can from who ever you can.

I plowed for 20+ years mostly small commercial properties. I learned the most valuable lessons in life and business from those early years.

I was young and hungry and was mostly dealing with seasoned old business men.
Invaluable experiences with one on one negotiations with some pretty tough old characters had helped me learn the "Art of the Deal"

Don't let pride or rules get in the way. You get what you can from who you can, simple as that.

Just don't ever work by the hour :confused2: I have never done that in 28 years being in business.

One memorable experience was when I was trying to solicit a parking lot snow removal job from a flooring business on the local commercial strip, owned by 3 partners, Jewish gentlemen, I mention that because of that stereotypical tough/ frugal businessman image.
They told me they did not have a regular guy to do the lot so they would consider me. A couple of weeks later we had an early, pretty heavy snow. When I saw their lot wasn't done at 5am. on a business day, I did it with out their authorization.
When I went back in the daytime and told them I did it, they all had scowls on their faces, "You got balls kid" one of them said. I thought they were mad, but they were just surprised someone would take that chance.

I ended up working for them for the next 20 years, got a bunch of other accounts from the exposure, even met my wife because of that relationship!!

I only plow a few neighbors now for no charge, but one doctor outside of my immediate neighbors range asked if I could do his 40x20 driveway for $50. I said sure why not.

JB

 

[Gale Hawkins]

Well as best as i can figure, a $40,000 tractor , blower blade can be expected to last a long time, but for sake of a figure lets say 2,000 hours before some major works needs to be done.

1. 40,000/2,000 hr = $20/hr for equipment
2. All mine are local drive to so $0 transportation
3. My commercial policy $300/yr = less than $1 per day
3. Fuel runs $40/day = $5/hr on my tractor
4. Extended basic maintainance (oil, filter, hydro) = $1.00 per hour (cost about $400 per 400 hours changes on hst, and reg oil changes)

total = $27/hr for my tractor

Im making between $50-75/hour right now.

This is not bad wages for seat time.

I can see this math when doing it as a side hobby but not if you were just getting equipped to do custom work for paying customers. :thumbsup:

What little I do I do at no charge for insurance reasons but mostly to be helpful yet never have to dig out and go if I do not feel like it.

 

[Diamondpilot]

Everyone around here want to pay per event. I simply figure me and a piece of equipment is worth $60 per hour. Simple math for this public skool kid. I run a 5,600# 28HP 4x4 tractor with a 7' Meyer Plow and a 7' Woods rear grader blade. Most drives in my area are 250' to 800' long. I can do most in 30 minutes easily.

By doing the time taken charge rule for me and my tractor it accounts for any issues or heavy snow fall. I use the same rule for bush hogging, post hole digging, bucket work, drive grading, lawn rolling, ect.

Chris

 

[D7E]

We charge $80 an hour with 1998 CAT 416c and 10ft snow bucket

 

[North Country]

I discussed this charging with my insurance agent this week.

One must get additional insurance if you go in business with your equipment. Doing it for a quoted price puts you in business per him.

Now going over and plowing snow or dig a footer at NO charge my farm policy will cover any damage I may create.

Check with your agent and see if you are self insuring for open ended liabilities. A business rider is not that much more I think. Going naked is common but getting caught naked would not be a good thing.

My policy doesn't require money to change hands for it to be "commercial" - any work done off my own property is defined as commercial. I guess the insurance guys figured it was always all-cash (correct for most people who are just helping out neighbors) and they'd never get any homeowners buying commercial insurance otherwise.

 

[North Country]

Well as best as i can figure, a $40,000 tractor , blower blade can be expected to last a long time, but for sake of a figure lets say 2,000 hours before some major works needs to be done.

1. 40,000/2,000 hr = $20/hr for equipment
2. All mine are local drive to so $0 transportation
3. My commercial policy $300/yr = less than $1 per day
3. Fuel runs $40/day = $5/hr on my tractor
4. Extended basic maintainance (oil, filter, hydro) = $1.00 per hour (cost about $400 per 400 hours changes on hst, and reg oil changes)

total = $27/hr for my tractor

Im making between $50-75/hour right now.

This is not bad wages for seat time.

You're shorting yourself drive time. It's hours on the tractor, so add in 20/hr for driving. Of course customers will never pay that, so you've got to add it in somewhere else.

 

[grsthegreat]

You're shorting yourself drive time. It's hours on the tractor, so add in 20/hr for driving. Of course customers will never pay that, so you've got to add it in somewhere else.

well if i get $35 for a half hours (or less) snow blowing of a driveway, thats $70.00/hour. Less my estimated $27/hr expense equates to $43/hr drive time (seat time) or so. like i said this beats wiring of a house that has no windows or doors in the dead of winter.

 

[North Country]

well if i get $35 for a half hours (or less) snow blowing of a driveway, thats $70.00/hour. Less my estimated $27/hr expense equates to $43/hr drive time (seat time) or so. like i said this beats wiring of a house that has no windows or doors in the dead of winter.

I don't disagree that it beats wiring in sub zero weather, but my math is different.

15 mins drive to the site + 30 mins blowing + 15 mins drive back = 1 hr work, for which you charge $35. Less your $27/hr expense = $8/hr in your pocket over the long term. You might as well ask if they want fries with that.

I don't know your drive times, but even a 5 min drive to a 1/2hr job using the same logic leads to only $25/hr pocketed. Worth doing, but less than you hoped.

 

[grsthegreat]

I don't disagree that it beats wiring in sub zero weather, but my math is different.

15 mins drive to the site + 30 mins blowing + 15 mins drive back = 1 hr work, for which you charge $35. Less your $27/hr expense = $8/hr in your pocket over the long term. You might as well ask if they want fries with that.

I don't know your drive times, but even a 5 min drive to a 1/2hr job using the same logic leads to only $25/hr pocketed. Worth doing, but less than you hoped.

i cant charge for drive time cause im already on the road doing the association roads anyways. so my case is different. Im there being paid from my association already. so if i turn up a driveway theres no time for drive added.
I agree that if i had to drive there the price would be different

 

[Gale Hawkins]

I agree many here are undercharging based on real world expenses.

That may be beside the point. Some like helping others feel better. Some like helping themselves feel better.

For most of us the equipment is a sunken expense. The $4000, $40,000, ect tractor is already parked on the place.

Our tractors are purchased because of WANTS more than NEEDS in many cases.:laughing: