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Living in an area with heavy snow can be a huge pain for residents. Clearing paths, driveways, and walkways takes time, energy, and money. For that reason, snow removal services become highly in demand during that season. For a snow removal business, it is crucial to have a snow removal pricing formula.
Thankfully, Housecall Pro is here to help. Learn how much to charge for snow removal and ensure that you are making enough money to cover costs, and labor, and to turn a profit. A snow removal pricing formula will make life easier and provide peace of mind when it comes to job pricing.
What is Snow Removal?
Snow removal, simply put, is the act of moving or removing snow from a property. More often than not, the term is interchangeably used with snow plowing. Removal services vary depending on the business as well. Before coming up with a snow removal pricing formula, make sure you have a clear idea of what services you wish to offer.
What Services Does Snow Removal Include?
Snow removal can run the gamut when it comes to services provided. Before you learn how much to charge for snow removal, come up with a list of services that you can offer. The more comprehensive the service, the more you will charge for that job.
Check out a list of snow removal services below. There are specified services that all fall under the snow removal umbrella, so a detailed explanation of each can provide clarity. If you are considering starting a snow removal service, here are a few of the services to consider offering.
Snow Blowing
There are a variety of ways to approach snow removal, but snow-blowing is one of the best. Snow blowers are versatile because they can handle walkways, driveways, and other small areas that larger equipment just can’t manage. Getting to snow when it is powdered only makes things easier.
Snow-blowing services can be a bit more complex to price out, however. If you want to know how much to charge for snow removal and snow-blowing services, factor in things like fuel, the type of snow blower, transportation, and the size of the job. Even still, snow-blowing is likely going to be the
Ice Removal
De-icing and ice removal services are one of the most essential parts of any business. Businesses especially are looking to prevent slips, falls, and potential legal issues. By offering ice removal services, you can provide peace of mind to customers of all backgrounds. De-icing can wind up being one of the most vital services offered.
Some will have their own homemade concoctions, but there is nothing quite like professional ice removal to ease one’s conscience. Salting is generally the best method for larger areas like parking lots, which require a salt spreader. Not every snow removal service offers salting, so it can be a great way to get in with niche customers when compared to other snow removal businesses.
Snow Removal
Removal services are often confused with snow plowing. Field service management software can help you keep a list of offered services so that you can keep things in line. Basically, snow removal is about getting rid of the snow entirely. Plowing is often about pushing the snow from one place to another, but this is different.
Snow removal can include areas that have already been plowed, including piles along the curb, at the end of a driveway, in parking lots and more. Removal can be much heavier work, requires more specific equipment like dump trucks, and generally entails a lot more than snow plowing. For that reason, snow removal can be quite a bit more expensive compared to other services.
Snow Plowing
Snow plowing is one of the most common snow removal services you will find. Snow plowing is also one of the most cost-effective services that a removal business can provide. When creating a snow removal pricing formula, you will find that snow plowing requires more affordable equipment like a snow plow attachment.
When it comes to snow plowing jobs, you are essentially pushing the snow from one part of the driveway to another or off to the side. Residences and small businesses are simply content having a clear path. Plowing can also lead to other potential jobs like snow melting, snow-blowing, and general snow removal.
Snow Removal Pricing Formula
The key is to create a snow removal pricing formula. This way, your business can quickly cost out jobs and provide accurate estimates in a timely manner. There are many factors that come into play when it comes to how much to charge for snow removal services.
Things like drive time, wages, fuel, equipment, and business insurance are all factors that need to be accounted for. There are a few ways to create a snow removal pricing formula, including per push, per event, per hour, seasonal contracts, and more. Each method will likely come into play at some point, so being familiar with each is crucial.
Here are two examples of the pricing formula meant to help cover expenses and turn a profit:
- Rate x number of workers x number of hours = cost of snow removal
$30 x 3 x 2 = 180, which is the base cost of service.
- Rate / (60 mins) x (minutes spent at the property) + (overhead and materials) x profit margin
$30 / (60) x (120) + (100) x .25 = 240.83 as the total cost of the job
How to Bid Snow Removal Service Jobs
Before you can place a bid, you need to do your homework. Start by finding out how competitive your area is, what other businesses currently offer the services you plan to, what their rates are, and what the base cost necessary to cover each job would be. The snow removal pricing formula will help with that.
You’ll need to know what you want to charge for each job and the expected turnaround time for each. While it is important to grow your customer base, especially in the early days of the business, don’t shortchange yourself. Having a sound formula in place will help ensure that you are getting paid what your time and effort are worth.
Snow Removal Pricing Models
One of the first things you need to do when creating a snow removal pricing formula is to choose a pricing model. Though there are several out there to choose from, the four most common are price per hour, price per inch, price per season, and price per visit. Let’s explore each of them to learn more about them and why they could be a good fit.
Price Per Hour
One of the easiest ways to learn how much to charge for snow removal is to do so hourly. Many snow removal businesses stick to this format almost exclusively. Even better, it is one of the simplest rates to calculate, allowing you to come up with accurate, itemized quotes in no time.
Average hourly rates can run anywhere from $25-$75 depending on the background, location, and services offered by your business. Take your hourly rate and multiply it by the number of hours it will take to do the job. Add in the cost of materials, overhead, and markup to find the right number. You might need to tweak to find what your rate will be either for a specific job or in general.
Price Per Inch
If you are offering snow removal services in areas that typically get heavy snowfall and large snow accumulation, then it may be a better idea to price per inch. Think of it as a flat fee rather than an hourly fee, the cost of doing a specific job without undercutting yourself along the way.
Generally speaking, it is a good idea to set a flat fee for anything in the 4–6-inch range. Anything more than six inches and you should begin implementing a fixed amount for every inch added. You could also switch to an hourly rate as snow size escalates. On average, plowing 4-6 inches of snow will cost between $50 and $100. Consider adding $3-$10 for every additional inch.
Price Per Event
Consistent snowfall is one thing. When there is a specific event, something like larger than normal snow accumulation or a big snowstorm that happens within a 24-hour period, it can require different pricing. For areas that aren’t typically getting a lot of snow consistently, this is probably the best pricing model.
Check to see what competitors are offering when coming up with your pricing. The average for snow storms can run anywhere from $30 to $100, for instance. Shooting in the middle of that range is a good idea but consider using your formula to determine the labor, equipment, and other overhead costs that will ultimately impact your bottom line.
Price Per Visit
Also known as “by push,” this pricing model involves charging a set fee whenever you come out. These are typically more ideal for regular customers like businesses or even some residences. When charging per push or visit means that you need to factor in things like material and overhead costs to make sure that you remain profitable.
A flat fee can be more ideal for repeat customers. Rather than having to ask for a quote each time, they know what they are getting ahead of time. Cost per visit, on average, runs between $30 and $70. For one-off snow removal jobs, you can use your per push/visit pricing model as well, so this pricing model is a bit more versatile.
Snow Removal Cost Factors
In order to determine the costs of the job, you need to weigh the factors that go into snow removal. Each job is different and has factors that can ultimately impact the cost of doing it. Consider these three factors when it comes to pricing out your next snow removal job.
Snow Weight
Without a doubt, the amount of snow that needs to be cleared is the single most important part of pricing a snow removal job. If you work in areas that get a lot of snow, using a price per inch model accounts for the weight of the snow accordingly.
It is a good idea to check out forecasts for each area that you cover prior to the beginning of the season. It can be an excellent way to calculate potential revenue and expenses, create consistent pricing models, and get ahead of the game. There is more to snow removal than meets the eye. The heavier the load, the more it will cost to get rid of.
Job Size
Just as weight is a critical factor in determining pricing, so too is the size of the job. Whether it be a driveway, parking lot, or other area, the size of the job is one of the most important factors to consider. There are a few factors that go into better understanding the size of the job at hand.
Consider things like length, design, slope, the material in question (dirt, concrete, gravel, etc.), and the condition of the surface. Square footage and the details of the driveway are good things to include when creating a pricing formula. This way, you can provide a proper estimate (typically an hourly estimate). There are times when sidewalks are included in driveway snow removal, so be sure to factor that in as well.
Equipment
In order to get the job done, you need the right equipment. Other than labor, equipment is going to be the biggest expense facing a snow removal business. You will typically want to charge more for jobs that have more expensive equipment, those running on gas being chief among them.
Depending on the job, you might need equipment like snow plows, shovels, snow blowers, ice choppers, snow pushers, or any kind of special roof equipment. If you don’t have the equipment already, renting may be the best possible solution. Just make sure to factor the rental fees into your estimate. You can even include it in the invoice to illustrate why your prices are what they are.
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Residential Snow Removal Pricing vs. Commercial Snow Removal Pricing
Though the idea of plowing is roughly the same, there are stark differences when it comes to residential versus commercial snow removal pricing. Knowing those differences can give you a better understanding of why your pricing is what it is and how to make tweaks to your pricing in the future.
Scope
Perhaps the biggest difference between the two is the size and scope of the job. Commercial jobs are often much larger and more complex than the average residential snow removal job. Office buildings, industrial complexes, and shopping centers have larger areas to work with, and removing snow can become a whole different endeavor.
The scale of residential work tends to be a lot more localized and centered around households. With commercial properties, there needs to be a more strategic approach and it often requires heavy machinery. In some cases, it may take additional crew members. Snow removal at a residence can often be done by one person and sometimes even by hand.
Equipment Required
The next consideration to make is equipment. To do the job effectively, your business will need the right equipment. Each job is different, and the right equipment can vary. For residences, a snow shovel is the most basic option and can generally do the job.
The more expansive your services are, the more specialized equipment that will be required. Snow blowers, front-end loaders, snow plow attachments, salt spreaders, and de-icing agents are just part of it. The bigger the service you plan to offer, the more comprehensive the equipment you will need to do the job.
Safety
Safety is paramount in any business. The last thing you need as a business owner is to have someone hurt on the job. When it comes to residential vs. commercial, the latter has drastically different safety considerations.
Providing safe access for customers, employees, and service vehicles is crucial. Large-scale operations may require specialized equipment that is meant to not only get the job done but to do it safely. After all, potential injuries and accidents can be costly in many ways to a business.
Frequency
The frequency of snow removal activities will vary between residential and commercial jobs. For a commercial job, snow removal must often be done in a specific window and must be done promptly. They also may not come up as frequently.
Residential shoveling, plowing, and snow removal are often required on a more consistent basis. Residential services tend to be a lot more adaptable compared to commercial jobs in terms of frequency as well.
Cost
As mentioned, it is possible to complete some residential jobs with nothing more than yourself and a shovel. The larger the job gets, however, the more complex and expensive it becomes to complete. Cost is often one of the biggest differences when comparing residential and commercial snow removal.
Commercial snow removal, especially in bigger areas, requires more operational and upfront costs. Having specialized vehicles, a larger workforce, a de-icing agent, etc. requires more of an investment. If you are starting out with a modest investment budget, it may be difficult to branch out into commercial removal services.
How to Price Snow Removal Services
Calculating your prices and knowing how to ask for payment are running your business. Each service is different and there are factors that go into pricing. That said, it can help to know how much to charge for popular services like sidewalks, driveways, spreading salt, and more.
Having a basic pricing formula is a good place to start. Consider what you wish to charge hourly, factor in overhead costs like labor, materials, etc. and add in your profit margin. This will effectively tell you what to charge on certain jobs. If you are looking for a quicker answer for each service, we break it down by service.
How Much Should I Charge for Shoveling a Sidewalk?
Sidewalks are tougher to price because most homeowners feel like they are equipped to do the job themselves. The rate is typically the same as any other snow removal job, falling somewhere in the $25-$75/hour range. You can also consider adding labor costs as an add-on service.
How Much Should I Charge for Shoveling a Driveway?
The average for a driveway is somewhere in the neighborhood of $50-$150, depending on the area. Larger driveways will obviously be more expensive and are impacted by your overhead and how long it takes to complete the job. It also depends on whether you are plowing or shoveling. If it’s the latter, stick with the hourly rates. If you are plowing, anywhere from $30-$90 is typical for one visit.
How Much Should I Charge Per Inch of Snow?
For high-volume areas, a price per inch is more ideal. The average for up to six inches of snow is anywhere between $65 and $110. A flat fee for each additional inch after that is commonplace. Calculating with an hourly rate could work but it is generally better to have a flat fee for simplicity’s sake.
How Much Should I Charge to Spread Salt?
In the same way that you would charge a fee per inch of snow, the same applies to spreading salt. For every application, anywhere from $20-$65 is normal depending on the size of the job. Talk with the customer beforehand to determine if they will require more frequent spreading or if it will be a one-off.
How Much Should I Charge for Snow Plowing?
Snow plowing is often done far faster than shoveling. Though plowing is the only way for larger areas like parking lots, it changes the game when plowing driveways. Rather than charging an hourly rate, a flat fee ranging from $30-$90 would be more appropriate. Just make sure to include expenses like gas, equipment, and vehicle maintenance into the equation.
Why Understanding Snow Removal Pricing is Important
By now, it is clear why a snow removal pricing formula is so crucial. By knowing how much to charge for snow removal, you can ensure that your business’s costs are covered and that you are still making a profit. At the end of the day, that is what every business strives for, and ineffective pricing can be deadly.
With the help of Housecall Pro’s 14-day trial, you can see quickly how having estimating software can be a difference-maker for your business. There are seemingly a million things to worry about when it comes to running a business. The last thing you should have on your mind is whether or not you are charging the right amount per job.
