Do you know how to get snow removal contracts?
Well, here is how to obtain contracts for seasonal snow removal in residential and commercial properties.
With the winter season comes a lot of snow-related problems. And these problems are best solved by snow removal companies.
Residential And Commercial Snow Plowing Contracts
However, snow removal contracts for bid can be very tough to score, as many snow removal companies are competing against each other.
Unfortunately, failure to secure enough contracts would mean the end of the business.
Thankfully, we’re here to discuss seasonal snow removal contracts, as well as some important considerations to make each season profitable for your business.
What Is A Snow Removal Contract?
Generally speaking, a contract is an agreement between a client and a service provider, where the former pays the latter according to pre-stated terms.
As for snow removal contracts, the contractor is hired by a client to remove snow from any part of their property in exchange for a fee. These include the roof, driveways, and walkways.
In most instances, snow removal contracts are executed on a “per job” basis. In this case, the contractor is paid the same amount of money, regardless of how voluminous the snow to be removed is.
Factors To Consider When Bidding For Snow Removal Contracts
One of the major factors snow removal companies should consider when bidding for contracts is pricing.
Under this bracket falls seasonal bidding, the available number of working models, bidding per hour, per inch, and even per push.
With this in mind, the most important thing for a snow removal service is to create a model which allows them to price in a wide range of structures or according to the request of a client.
If you are just starting your snow removal company, then you may be wondering how you can place a successful bid and keep your business profitable.
Not to worry, I’ll be giving you some vital tips to help you make your bid.
How To Write A Profitable Snow Removal Proposal
Follow these tips to keep your snow removal service afloat during the winter seasons.
Understand your business’s financials
Before you place your bids, be sure to take your company’s financial goals into account. You need to have a clear picture of how you intend to generate revenue from your services, and how much expenses you will likely incur as you run your snow removal business.
Without clear figures or financial goals or challenges, you will put yourself at risk of placing an unfavorable bid.
That being said, make sure you are certain of how much the job you are bidding for will cost to execute, then weigh that against how much you will be charging for your services.
Determine how long the job will take to execute
After having an idea of your company’s financials, you need to break down that idea into more specific details. And an important factor in this breakdown is the time it will take you to complete a job.
You can have a clear picture of how long a job will take, simply by calculating the square footage of snow that your client needs to be removed.
How many workers you will need for the job
Now that you have determined how long the job will take, you should also figure out how many hands you will need to do the job.
As you can imagine, the larger the square footage of snow that needs to be removed, the more hands you will need to get the job done in good time.
The kind of equipment you will need
Workforce aside, you will also have to figure out the kind of equipment you will need to finish each job.
Will you be needing low-pressure steamers or roof rakes? And if you do, then what capacity of steamer will you be needing, and how many roof rakes will be required?
Know the number of occurrences per season
You cannot prepare a proper Seasonal snow removal bid if you do not have an idea of how many snow storms can occur in a season.
With this in mind, make sure you do some research and find out the frequency of occurrences over the past 3 to 4 years in the region your company is located. This would give you an idea of what you are going to be up against.
On average, you can expect about 15 events per season, each of which produces about 2 inches of snowfall.
A medium average will give you about 7 events per season at about 6 inches of snowfall, while a high average can give you about 3 events at 7 inches of snowfall and above.
Know your prospects
Now that you have prepared your bid, it is time you share it among your prospects. Keep in mind that a prospect only becomes a customer once a transaction has been made, as showing interest isn’t just enough.
This means you need to have a face-to-face meeting with your prospects, as it will help you determine the actual possibilities of doing business with that person.
During the meeting, you should ask some relevant questions that will help you determine the following –
- If the prospect can afford your fees
- What exactly does the prospect expect from your snow removal service
- If the prospect is worth the trouble
Once you are done with your meeting, you can put all the information you have gathered into consideration and make your final decision from there. Hopefully, you can have a successful bid, one that will be profitable to you, and will help your customers solve their problems.
How Much Does A Seasonal Snow Removal Contract Cost?
Below are some averages that will help you put your seasonal bid together.
- Residential snow removal ($30 to $100/6” of snow)
- Snowplow ($25 to $75 per hour)
- Contract price per season ($200 to $600)
- Per acre salting ($150 to $350)
Using the information provided in this article, you can prepare a successful bid.
Don’t forget to consider all the relevant factors such as workforce, estimated time of completion, the distance between your company and the location, and the type of tools you will need.
All the best!