Hi, Wondering how guys set up commercial plow contracts. More interested in a per hour contract, not per push. Do you charge a retainer? Would anyone mind posting a contract they use? It has been something I have been considering getting into for a few years. Any advice or tips would be appreciated. Also, what are some general rates? Skid loader, backhoe, truck, salting, etc. Thank you!
There are a couple websites out there that specifically focus on that industry and have come information you can glean through, do a google search and it will pop up. I tried posting the link but it must be against the rules
rrr, It all depends... every contract is a negotiation between you and the customer. Make the best deal for yourself that you can, and don't accept any deals that you don't like. (Really. If you don't like it, don't do it. Doesn't matter what story a customer tell you, customers always lie; just don't do it. If you are not turning down half of the customers proposals or they are not declining yours half the time, probably something is wrong.) Charge the largest minimum fee or retainer that you can get. Preparation and mobilization cost money. For small commercial accounts, hourly rate is probably all that you will be able to get the customer to accept. (Make the minimum time high, i.e. one hour minimum, to compensate for that.) Hourly rates are probably higher than you would think. The price of working anytime of the day or night, any day it snows, working no matter what, no sick days no vacation days, etc, is a lot higher than the hourly rate for working bankers' hours. Doing hourly billing while working on many accounts each time you go out means you need to be obsessive about time keeping, especially for employees. I would *only* salt on a time and material basis. Charge for the time when you don't salt; an ice patrol has a price. (Customers want all of the salt in the world when you pay for it; they don't want any when it costs $150 every time you spread some... One guy here has the salt, in bags, in the back of the truck and a small, empty, salt spreader on the back bumper. The customers tell him how many bags they want, he puts that many bags of salt in the hopper and spreads all of it, and there's no disputing how much they bought, and they pay for the time they spend dicking around with him.) My advise is do the best work, charge the highest prices, and *answer your phone every time it rings* and *always be polite to customers*. Do so and you will probably have all of the customers that you want. Plan ahead of time, and be ready! PS: You really have to be crazy to want to get into the snow clearing business.
lol, might be more profitable to see if you can get on seasonally with a local municipality, from my experience its a better gig, you get paid for your time regardless and when things don't go right (because those days happen) its not coming out of your pocket.