Snoworks
02-06-2004, 04:27 PM
Well after 10 years of offering shoveling service to our residential customers, here is my summary of how it has impacted my business.
- We have charged between $50.00 to $140.00(Higher than most) for seasonal walkway fee's.
- Up until last year we avr. 45% of customers that choose the service.
-Most complain at the walkway cost as being to high, no matter what the sizes and $ amount we quote.
-I made a business choice to offer walkway service to target a specific customer. Basically clients that dont want to deal with snow at all.
-I have kept the walkway service throughout the years, due to fears that I would loose alot of business if I did not offer it.
- After always breaking even or loosing money on walkway service when considering labor expenses, and truck down time. We decieded to make walkways mandatory on our contracts for the 2003/2004 winter season. We have approx. 200 residential clients that signed up.
-After all the snow we have had in the last couple of weeks, I have had the chance to skip walkway service on all of our routes at one time or anouther(Due to multipule plowings in the same day). When I checked the route completion times with/or without walkways being serviced, the differences shocked me. We could finish a route up to two hours quicker, if we did not shovel the walks. And those times are based off us having a shoveler in the truck with the driver, not just a single plower/shoveler.
-That adds up to 14 additional driveways, or more, I could service per truck, if I did not offer shoveling. 14 x 6 x $320 = $26,880 Thats approx $16,880.00 in additional revenue, with out the hassels of doing the walkways. Also - I save $10,000 in shovel labor during the year, which brings me back to the $26,880 number.
-It has only taken me 10 years to beat this fact into my head, but, I do not think I will offer sidewalk service again! Well, if they are willing to pay, I really dont care. But I doubt that people will pay $200.00 to shovel a small walkway for the season. Especially since most laugh at me when I quote them $80.00. for similar walks. Again - why do walks when you no you can make more money not doing them!
Comments welcomed!
Chuck B.
- We have charged between $50.00 to $140.00(Higher than most) for seasonal walkway fee's.
- Up until last year we avr. 45% of customers that choose the service.
-Most complain at the walkway cost as being to high, no matter what the sizes and $ amount we quote.
-I made a business choice to offer walkway service to target a specific customer. Basically clients that dont want to deal with snow at all.
-I have kept the walkway service throughout the years, due to fears that I would loose alot of business if I did not offer it.
- After always breaking even or loosing money on walkway service when considering labor expenses, and truck down time. We decieded to make walkways mandatory on our contracts for the 2003/2004 winter season. We have approx. 200 residential clients that signed up.
-After all the snow we have had in the last couple of weeks, I have had the chance to skip walkway service on all of our routes at one time or anouther(Due to multipule plowings in the same day). When I checked the route completion times with/or without walkways being serviced, the differences shocked me. We could finish a route up to two hours quicker, if we did not shovel the walks. And those times are based off us having a shoveler in the truck with the driver, not just a single plower/shoveler.
-That adds up to 14 additional driveways, or more, I could service per truck, if I did not offer shoveling. 14 x 6 x $320 = $26,880 Thats approx $16,880.00 in additional revenue, with out the hassels of doing the walkways. Also - I save $10,000 in shovel labor during the year, which brings me back to the $26,880 number.
-It has only taken me 10 years to beat this fact into my head, but, I do not think I will offer sidewalk service again! Well, if they are willing to pay, I really dont care. But I doubt that people will pay $200.00 to shovel a small walkway for the season. Especially since most laugh at me when I quote them $80.00. for similar walks. Again - why do walks when you no you can make more money not doing them!
Comments welcomed!
Chuck B.