In the United States and Canada, snow falls every winter without fail. Hence, individuals will be on the lookout for reasonably priced snow removal services.
Thus, the number of customers you bring in will depend on the price and quality of the service you offer (and retain)
Of course, there's more to it than offering the lowest rates in the industry. This may entice your target audience but drive away potential revenue. In addition, the customers pay attention to the quality of the work. You know you won't be happy with subpar service at the cheapest price.
As a result, there could be a lack of clarity on pricing for snow removal. Nevertheless, after reading this article, you won't have to. Let's begin with a look at six different pricing models for snow removal.
There Are 6 Ways to Make Money Out of Snow Removal
The cost of snow removal can vary greatly depending on the company. You can also utilize these 6 industry-standard metrics for your company:
- Per Hour
- Per Push
- Per Event
- Per Inch
I'll explain each one.
1. Per Hour
It's easy to figure out because there are typically only five variables involved:
- Worker headcount
- Their hourly rate
- Hours needed to do the job
- Other expenses, including those for tools and transportation
A snow removal service, for instance, would require the combined efforts of four people, each of whom earns $20 per hour. Just add up how many hours everyone worked and how much they were paid per hour.
3 * $20 * 4 = $240
Now we can calculate our profit by subtracting our other expenses. Let's say the sum of the two is $60. The total cost of clearing snow will be $300 ($240 plus $60).
2. Per Push
No. The name may give the impression that you will be charging for each snow shovel you use, but that is not the case. That means that you have a flat rate for each visit.
It turns out to be rather lucrative to charge a fixed rate for even a minor job. A few, though, will be very large and time-consuming. These require calculations that take into account things like working hours or snow depth in inches.
3. Per Event
In this context, an event is a snowfall or even a snowstorm. Here, the snow removal service and its customers enter into a contract for the duration of the event.
Most of the time, it's simply a minor rainstorm. So, a single trip to the client's location is all that's required. But, if a severe storm is expected, you may have to make multiple trips.
The responsibility for remembering this is yours.
4. Per Inch
Some snow removal services will additionally factor snow depth into their pricing structure. This translates to a rate of $1 per inch of snow cleared.
Rates can be adjusted independently for the top layer and the subsequent inches.
Have you ever bought a Netflix membership? Essentially, it gives you access to its video streaming service for a limited period of time. Professional-looking price quotes are being sent out for full-season snow removal contracts.
In this scenario, the customer will contract with your snow removal business for the entire winter. But before you join forces with anyone, you should make sure that things like the contract's duration, the number of snow removal sessions allowed, and the billing cycle's end date are all clear.
If you want to know what the following season will be like, you should look at the weather patterns of the past. This will ensure that the contract's pricing remains reasonable.
You can get someone to sign a long-term contract with you by suggesting a deal that spans multiple seasons. In this case, everybody wins.
You seal a transaction that will keep you in business for the foreseeable future. And the client may also be able to acquire a tailored deal at a cheaper price.
Your chances of landing a multi-season contract to remove snow from commercial buildings are higher than those of landing a contract to do so on residential structures.
Now that you know what to expect to charge for your snow removal services, you can focus on providing accurate quotes to your customers. Blinksale can be a lifesaver in situations like this. Blinksale was developed specifically for snow removal businesses.
Which Factors Should Be Considered for Snow Removal Cost Calculation?
1. Snow Location
As you probably already know, snow can build in a number of different areas. However, the time and energy required to clear snow varies depending on the location.
Driveways, rooftops, sidewalks, and gardens, for instance, are prime real estate for snow accumulation. You can see why clearing snow from a roof is a considerably more complicated and sometimes dangerous task than clearing snow from a garden.
Since where snow falls is important, a premium can be asked for snow that falls in dangerous or remote places.
2. Service Location
The price of snow removal services varies greatly depending on the region. The best way to find a fair price for snow removal is to research the rates charged by other businesses in your area.
The average costs in various locations will be displayed for your perusal. Yet for the time being, we recommend that you keep your prices in line with those of your regional rivals.
3. Snow Volume
Of course, you must adjust your rates based on the amount of snow, as a larger scale necessitates more effort.
Hence, you need to thoroughly examine the task at hand to calculate appropriately how much to charge for it. This will ensure that your snow removal business is profitable and that you are fairly compensated for your time and effort.
4. Work Quality
Some customers may be searching for a dependable service, while others will simply want to get their work done, so the level of quality you offer is important.
Consider, then, whether you want to market yourself as a premium snow removal service that is willing to charge more for its premium service. Or do you prefer affordability?
The bottom line is to price according to the quality you offer. And then explain why it was worth it.
There are typically three methods used to remove snow. These are
Shoveling - is the process of removing snow by hand. Shoveling snow is the conventional yet labor-intensive approach to dealing with snowfall. But it's still the best method for clearing snow from confined spaces.
Blowing - a snow blower is used instead of a shovel. You can complete the job more swiftly and easily with this method. Snow blowing is an excellent option for medium-sized areas.
Plowing - is an efficient method of removing snow from a broad area. As a result, you'll need a snow plow truck to get the job done.
The cost of getting rid of snow depends on how you do it.
Now that you have a better idea of things to consider when setting your rates, let's get to the meat of the matter: how much should a snow removal service typically charge?
What is a Typical Price Range That You Can Expect to Charge for Snow Removal?
Everyone wants to avoid spending a fortune on snow removal, so setting reasonable prices is essential. Affordable quality is what most people are looking for. So, let's take a look at the standard cost that an American pays for snow removal in the year 2022.
Typical prices for snow removal
Although it is challenging to establish a single, universal price, the average cost can provide some guidance on what to ask.
According to Forbes, the typical price of having your driveway cleared of snow is $110. But, the same data reveals that prices for clearing a regular driveway of snow might range from $49 to $180.
Snow removal from larger properties has been reported to cost up to $400.
The cost of snow removal varies according to the approach taken
Keep in mind that there should be a price difference between the various approaches to snow removal. It differs due to the fact that different approaches necessitate a different investment of time and effort. Let's have a look at their individual price points.
Shoveling - It takes a lot of time and energy to shovel snow. As a result, the rate per hour ranges from $25 to $75.
Blowing - A snow blower is an efficient tool for clearing snow from a medium-sized area fast. Similar to the cost of snow shoveling, this service is priced between $25 and $75 per hour.
Plowing - It's a fast and efficient technique to clean up a huge area, but it requires a lot of heavy machinery. It requires either a small or large truck. Hence, the price range is $30 to $95 per hour.
Next, let's look at how much it costs based on the model you used.
The price of snow removal is based on the chosen pricing model
We have already gone over six distinct pricing models that you can present to your customers and clients. So, according to those models, this is the average price on the market right now.
Per Hour - One of the six pricing techniques that is most commonly used. Each of your required men can bring in $25–75 per hour in labor costs. Say it takes an hour to clear snow and you send out two employees to do it. Hence, the price will range from $50 to $150, based on your hourly rate.
Per Push - You can charge between $30 and $50 for this service, depending on whether you charge per push or per visit. However, the size of the space is also a major factor to consider. As a result, you can increase your prices and still turn a profit.
Per Event - A snowfall or snowstorm is an event, as was previously said. The amount of snowfall required to warrant a visit and the total number of visits you will make should be specified here. A typical snow removal service will charge $30 to $50 per visit. But, before settling on a price, it's important to measure the available space.
Per Inch - This strategy is one of the least popular options presented here. But, in an effort to provide comprehensive coverage, we have placed it here. The average cost to have a snow removal service remove 6 inches of snow is between $60 and $95. After the initial layer, you can add on an additional layer at a rate of $30 every 6 inches.
Full-season - If you live in an area that receives snow every year, this is an excellent addition to your service menu. Seasonal snow removal service typically ranges from $350 to $450. But, you should go over the terms and conditions with your customers to ensure their understanding. Similar to what we proposed for the cost-per-event model, these clauses should include information such as service initiation, length, start and end dates, and maximum visits.
Multi-season - Pricing for a multi-season contract can range from $350 to $450 per season, the same as single-season contracts. On the other hand, you may provide a discount to a client who commits to a longer term with your business.
Now let's look at how much snow removal costs in different places.
The cost of snow removal varies depending on location
The average cost of snow removal varies slightly between US regions. Always check this so that your charges are appropriate for the area you're receiving service in.
So in this area, the average price to remove snow from a driveway and sidewalk is $54 per session. Yet, the price can shift from $48 to $60.
Colorado has a relatively inexpensive snow removal system. Plowing or blowing snow from a driveway or sidewalk in this area will set you back $41 per visit.
In New Jersey, the going rate for an hour of snowblowing is close to $95. The cost of snow removal in this area is $51.
The average cost of a snow plowing session in this area is $53. However the hourly rate varies between $56 and $67.5. The average cost of a snow removal service call is $117.50.
The location of the snow is another factor to consider when setting prices. Put it to the test.
The cost of snow removal varies depending on the location of the snow
Depending on where you are when it snows, it requires more or less effort. As a result, you can adjust your prices accordingly. Here are some of the most popular locations where snow shoveling is required.
Driveway - People will most frequently hire you to clear snow from their driveways so their cars can get out and about. The average hourly rate for snow removal from a driveway is between $30 and $70. The average cost to clear a driveway of snow is $40 to $75.
Sidewalk - Clearing snow from a sidewalk costs $25 to $75 per hour, $40 to $80 per visit, and $50 to $100 per occurrence. Driveways and sidewalks are usually part of the same package, and the cost is about the same.
Roof - Because plowing snow with a truck is impossible here, the cost of roof snow removal is higher. This requires careful attention and the use of specialized equipment. Nevertheless, snowfall that accumulates on the roof might cause structural damage. As a result, the hourly rate for snow removal from a roof might range from $50 to $100. The fees might range from $150 to $150-$700 per visit or event level for special occasions.
Snow removal cost depends on location type
According to the scope of the project, residential and commercial regions have different pricing structures.
Residential snow removal - Residential areas don't require as much time and effort, they typically have lower snow removal costs. Customers typically pay $25 to $75 per hour for snow removal services. Prices in residential areas might range from $30 to $100 for each service call.
Commercial snow removal - Properties used for business purposes tend to be larger than those used for living. As a result, commercial snow removal costs are higher. Hourly rates for such work often range between $50 and $200. Finally, all the bases for setting your service's price have been covered.
Now that you know how much snow removal costs, it's time for you to set your own prices. Keep it low enough to attract customers, but not so low that you lose money.
Finally, we'd like to point out that if you want to stand out from the crowd, provide a snow removal estimate template that looks professional. Try Blinksale for free to see how it can help your business.