How to price snow plowing

The two numbers you need

• Production rate: the square feet each machine or crew clears in an hour. Time a few pushes on a lot you know the size of. It changes with the equipment, the layout and the obstacles.
• Billing rate: what an hour of that machine and operator has to bring in to cover wages, fuel, wear, insurance and overhead, plus your profit.

The example site

These are the free calculator's starting values. They are placeholders, not market rates, so replace them with your own.

• A 200 × 150 ft parking lot, plowed with a pickup truck: 30,000 sq ft an hour, billed at $110 an hour.
• 250 ft of 5 ft sidewalk and one set of steps, cleared with a snowblower: 5,000 sq ft an hour, billed at $65 an hour, plus 5 minutes per set of steps.
• 10 minutes of setup and travel per visit, billed at the truck rate.
• A minimum charge of $50 a push.

Step 1: Measure the site

Multiply length by width for each paved area, then add the areas up. Measure sidewalks the same way.

• Lot: 200 × 150 = 30,000 sq ft.
• Sidewalk: 250 × 5 = 1,250 sq ft.

A satellite map's measuring tool is fine for a first estimate. Check the numbers on site before you sign.

Step 2: Work out the time per push

Divide each area by its production rate, then add the steps and the setup.

• Lot: 30,000 ÷ 30,000 = 1 hour.
• Sidewalk: 1,250 ÷ 5,000 = 15 minutes, plus 5 minutes for the steps.
• Setup and travel: 10 minutes.

That's 1½ hours of work each time you plow.

Step 3: Price one push

Multiply each block of time by its billing rate.

• Truck: 1 hour × $110 = $110.00
• Walk crew: 20 minutes at $65 an hour = $21.67
• Setup and travel: 10 minutes at $110 an hour = $18.33

Total: $150 a push. When the math comes out below your minimum, charge the minimum: a small site still costs a trip.

Step 4: Price de-icing

Material is the area ÷ 1,000 × the pounds you spread per 1,000 sq ft × your cost per pound. Add your markup, the spreading time and one setup.

• Rock salt on the lot at 5 lb per 1,000 sq ft: 150 lb × $0.06 = $9.00
• Ice melt on the walks at 6 lb per 1,000 sq ft: 7.5 lb × $0.50 = $3.75
• Material with a 100% markup: $12.75 × 2 = $25.50
• Spreading: 18 minutes on the lot at 100,000 sq ft an hour ($33.00), and 5 minutes on the walks at 15,000 sq ft an hour ($5.42)
• Setup and travel: $18.33

Total: $82.25, rounded up to the next $5: $85 an application. Use your own spreading rates: the right amount depends on the product, the temperature and the conditions.

Step 5: Price plowing and salting in one visit

When you plow and salt on the same trip, charge the setup once: $150.00 for the push + $25.50 of material + $38.42 of spreading = $213.92, rounded up to the next $5: $215 a visit.

Step 6: Turn it into a seasonal price

Multiply by the pushes and salt applications in a normal winter where you work, then add a cushion for a heavy one.

• 12 pushes × $150 = $1,800
• 12 applications × $85 = $1,020
• $2,820 plus 10% = $3,102, rounded up to the next $10: $3,110 a season, or 5 monthly payments of $622

A seasonal price is only as good as those counts. Base them on records, such as your area's snowfall history or your own logs from past winters, not on a guess.

Per push or seasonal?

• Per push or per visit: you're paid for every storm. The client carries the cost of a heavy winter, and you carry the cost of a light one.
• Seasonal: one price split into payments. It's steadier income for you and an easy budget for the client, but a heavy winter comes out of your margin. Limit that in the contract, for example by billing storms over 12 inches separately.
• Hourly: for work you can't measure ahead of time, like hauling snow off site or clearing roofs.

What goes in a seasonal contract

1. Term: the exact start and end dates of the season.
2. Services: which areas, the trigger depth (for example, plow at 2 inches), and how soon after the snow stops you'll be done.
3. Pricing and payment: the seasonal price and installment dates, or the per-push and per-application prices; invoice terms; and the right to pause service while an account is past due.
4. Client responsibilities: mark curbs, islands, hydrants and landscaping before the first snow, and keep areas clear of cars.
5. Ice and changing conditions: reasonable care, with no promise that surfaces are free of ice at all times.
6. Damage: how fast the client must report it, and what doesn't count, like turf scraped along the edges.
7. Extra services: storms over a set depth, hauling and roof clearing, billed separately.
8. Insurance: include it only if you actually carry it.
9. Ending the agreement: the notice period, and what early cancellation of a seasonal contract costs.
10. Delays: breakdowns, extreme weather and road closures.
11. Signatures.

This isn't legal advice. Have a local lawyer read your contract once, especially the liability and indemnity wording, because that varies by state and province.