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Analyzing Per-Event Bidding Strategies

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22:19
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How to run a Snowplow Business: Red flags, pricing systems and what not to do...

What happens here

The host elaborates on per-event bidding, where a lump sum is paid for each snow event. He recommends a tiered pricing structure based on snow accumulation (e.g., higher price for 3-6 inches than for 2-3 inches). Events exceeding a high threshold (e.g., over 12 inches) should transition to a time-and-materials basis to protect the contractor. He also advises providing a weather report with the invoice to ensure transparency and prevent customer disputes regarding snow depth. This method, however, does not protect the contractor in years with minimal snow.

Goal: Develop a tiered pricing strategy for per-event snow removal contracts and integrate weather data.

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All right, before we hook up that plow, this seems like a great opportunity to talk about snow plowing on a pervent basis. And what I mean is if it snows, you go out and plow and you get paid a lump sum for that one individual event. Now, there's a certain way to price that service out that will protect you, the customer, and also make it easy for the customer, you the contractor, and also make it easy for you, for your customer, to actually follow along and have a better idea of what their budget can be set for. All right, I'll get it right eventually, you guys. So, here's how you do it. Let's say that you're snowplowing a gas station. You go out there and you calculate approximately how long it's going to take you to snowplow that one gas station on a 2 to 3 in event and you price that out on a 2 to 3 in event. Then you can add 10 15 maybe 20% when you have a 3 to 6 in event. So you raise your price the more snow you have. You don't give them one lump sum and say, "Hey, I'll plow your service station every single time it snows, even if it's up to two feet, because it's going to take you three times longer to plow a monster snowfall as it is a minor snowfall." And I want to make sure that you guys are protected. So, the way I actually do it, I do it on I give them a price for a 2 to 3 in event. I give them a bigger price for 3 to 6 in, and then I break it down from 6 to 9 in. I raise that price up. And then when I have 9 to 12 inch events, I raise the price more. And any event over 12 in then goes into a time and material scenario. Meaning that I'm completely covered under any and all circumstances. And then I can actually follow along and when I invoice them, I can actually give them the weather report for the day that I snowplowed. And that weather report will show them exactly how many inches of snow fell when I plowed. That way there's no questions asked about what happens and if I'm I'm in the right pricing structure. It's very clear customers seem to like that. But again, this system does not protect you, the contractor, because if it doesn't snow all season, you're still hungry. So, let's talk about the next pricing structure, which keeps you fat and healthy all year long. But first, let's go hook up a snow.

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