How to Bid Commercial Snow Removal?
Bidding on work is a time-intensive and challenging part for snow and ice removal companies. It is also an essential aspect to sustain a successful, growing snow business.
The first important thing is determining how to price the work, and the number of models available, including seasonal bidding, per push, per inch, or even per hour. Calculating this comes after the overall bidding process. Your ultimate goal should be to develop a method that allows you to price in any structure or at the request of an important client.
Here Are Some Crucial Tips For Snow Removal Companies To Make A Profitable Bid.
1. Know About the Company Cash flow or Financials
Firstly the company needs to know how to generate revenue, control the expenses, and grow the equity. Not having control over the financials can make it challenging to run the company. To run the company smoothly, the contractor should know about basic financial statements, job-costing, and overhead costs.
2. Calculate the Amount of Time and Number of Workers Needed
Next, you need to determine the workforce and equipment that are to be acquired for completing the project. Make the calculations based on the square feet of snow or ice that you are removing.
You need to keep track of the following.
- Duration of Time
- The number of Man Hours Required
- The Equipment and materials that is to be used
- Measurement of Area
- Amount of Work Produced
3. Calculate the Number of Events in the Season
Prepare data according to the number of snowstorms that have been occurring over the past three years, so that you can be ready for any situation.
While considering the number of events, you need to use the averages to manage the risk and create a solid foundation for your bidding process.
- The average is Normal if there are 15 events at 2″ of snowfall.
- The average is Medium if there are 7 events at 4″ to 5″ of snowfall.
- The average is higher if there are 3 events at 6″ or more of snowfall.
4. Making It All Together
The next primary step is to calculate the company’s break-even rate, which can be defined as the estimated amount that will cost the company to complete the job. The equipment cost, labour, materials, site, weather history, and overhead cost are taken as the cost incurred by the company. This break-even rate can be used to determine the cost of various other jobs and be sure to include your profit before bidding to the customer.
5. Know About Your Customer
Once the overall bid is finished, now it is time that the company knows about the customer. It is not enough that the customer finds interest in your work. The company should also be interested in working with the customer. A face to face meeting is a solution to all your doubts and suggestions.
Before finalizing, you need to know if the customer is a potential client or not, and is he eligible to receive your snow removal services? Here are some of the questions you need to ask yourself
- Logistics: Are the routes going to customer place good enough for your trucks to go, any speed limit restrictions, and is it a high priority area?
- Expectations from Customer: Level of service desired from the customer, past experiences, and other contract negotiations.
- Strategy: Does the client support the company’s growth and fits the niche of your company market or target?
Any snow removal company must find a good supplier of salt or de-icing agents at affordable rates to initiate their project. Canada Salt Group Ltd is one of the most reliable bulk road salt suppliers all over North America with storage and transportation facilities to serve customers at the right time. Contact us at 866-321-7258 for a free estimate.