[Mick]

I've had several things happen that's led me to offering a set price for plowing any depth for a storm. Thought I'd get some opinions here. Lets assume that this is a "$30 push". Under my "old" system it would be:

3" to 6" - $30
over 6 to 9" - $45
over 9" to 12" - $60
over 12" - $60 + $1 an inch over 12"

Now, I've started offering one price per push up to 12" - no matter what the trigger. Price for this is equal to the 6" to 9" range. I still have the "storm clause" for over 12". So far all the new customers have opted for the singe pricing. Along with that, they are also opting for a lesser trigger. Most at 2" and a couple at 1". Everything I have is hard-packed gravel.

I also offer a seasonal price equal to the three year average for snowfalls of the depth they set as a trigger times the 3" to 6". For instance - the past three years we may have averaged 15 snowfalls of 2" or more. I would take 15 x $30 for a seasonal price of $450. I realize I may be shorting myself when it comes to deeper snowfalls, but I want $450 in advance so I figure with having the use of the money all season and the assurance I am getting that amount, I come out to the good.

Opinions?

 

[BWinkel]

Mick,
I use one price up to 12" then charge x 2 over 12" or over 24 Hrs. I think the advantage of this system is it really simplifies the billing. The snowfall amounts can vary in my area, so it avoids arguments over actual snow depth.
As far as offering seasonal prices based on 15 storms, it should average out over a few years. Or you may be able to sell a seasonal contract with an additional charge for events over a certain depth.
I think a mix of seasonal contracts and per push pricing would be ideal.

 

[Snoworks]

Mick, just set a cap on the number of times out for your new seasonal contract and your all set. We have about 90% of our customers sign up on a seasonal contract, for up to 15 plows. We avr. 10 plowable events a year. The other 10% are per plow contracts. Both pay me up front! The seasonals get a 10% discount right off the top of there estimated per plow fee - then *'s that # by 10. The per plow contracts do not get a discount, they pay the full per plow price. I bill them for 6 plows up front. If we get more pushes that 6, I bill them anouther 4 plows, etc.

I like to have some per plows, just in case we get hit with a good winter. When we do, 20 per plow driveways could add up to over $14,000.00 in addition revenue over a seasonal contract.

IMO, I feel that the ratio for per plow to seasonal should be closer to 35%-65% or higher. It is just a matter of where your business is at financially. Next year we will push selling more per plow accounts, because we will not be so dependant on cash flow. Bottom line per push always nets more money, when it snows.

Chuck B.

 

[CPSS]

We simply charge our "per push" customers, the actual number of times we plow any one storm. Last weekend we had a 20" storm. We plowed everyone Friday PM, Sat AM and PM. Charged them all for 3 plowings. This past weekend we had 12" of snow. Plowed them all twice. Billed for 2 plowings. This is the way we've done it for the past 15 years.

 

[WoofsPlow]

I charge a base rate (per site) for up to 6". Then 6"-12" = 1.5xbase rate. I have no contracts, when (if) we get into the 12"+ range I will reprice at time of plow. The last "big" storm we had about 24" and plowed most twice/charged twice 1.5x base. If you want a push you pay the price. With 12" on the ground and 12" more coming people are just glad you showed up:notworthy