Analyzing Seasonal/Monthly Bidding Strategies
At 15:46 in
How to run a Snowplow Business: Red flags, pricing systems and what not to do...
What happens here
The host discusses seasonal/monthly bidding as the most secure option for contractors. This method involves a fixed lump sum payment for the entire season or monthly installments. Contractors should calculate the average number of snow events in their area (e.g., 17-19 events for Minnesota in his example) and base their bid on a slightly higher number to cover potential fluctuations. Snow events outside the contracted period (e.g., October or April) are billed as extra. He also mentions some contracts may include clauses for customer refunds if actual snow events fall below a minimum, but emphasizes that monthly payments still ensure a steady income for the contractor.
Goal: Structure seasonal or monthly contracts for consistent income and contractor protection.
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