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Implement Depth-Based Pricing

2:52
5:02
163.1K views

At 2:52 in

How to Make a Killing SnowPlowing

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What happens here

To further enhance profitability, the narrator introduces a depth-based pricing model. This strategy involves charging different rates for snow removal based on the accumulation of snow. For example, he suggests charging $300 for 1-3 inches of snow, $350 for 3-6 inches, and $400 for 6-12 inches on a parking lot. This allows contractors to adjust their pricing upward as the amount of work (and associated fuel/time) increases with heavier snowfalls, optimizing revenue for each snow event.

Goal: Adopt a tiered pricing structure that adjusts rates based on snow depth to maximize revenue.

Tools and materials

  • John Deere 310E backhoe loader — Visual aid for discussing pricing strategies in a commercial setting
  • Pro-Tech pusher blade Pro-Tech — Visual aid for discussing pricing strategies

What they say

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lumpsum snowplowing is to break it down on a depth basis so for instance if you get 1 to 3 in you may may get paid $300 to do a parking lot if you get 3 to 6 in you may make $350 and if you get 6 to 12 in then you'll go to $400 but can you see how you can change your rates and make a ton of money at the same time

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