How to Charge for Salting Parking Lots: A Complete Guide for Contractors

Winter storms bring more than just snow. They create risks, liability and stress for the property owners. This is where salting comes into play. However, if you are a contractor, you may wonder how to charge for salting parking lots. Deciding on the right price is crucial to making your snow and ice management business profitable. If you are undercharging, you may lose money. If you are charging too much, you may lose business. In this article, we will explain how to set competitive, fair and profitable prices for salting services.

Understanding the Basics of Salting

Before we delve into the topic, we need to understand what exactly salting does. Salt or any deicing materials lower the freezing point of water and prevent the formation of ice. This makes the surface a safe place for pedestrians or vehicles to use.

Common deicing materials include:

• Rock Salt – Affordable and most commonly used
• Calcium Chloride – Works effectively at lower temperatures where rock salt loses its effectiveness
• Magnesium Chloride – an eco-friendly alternative, which is more expensive than any other deicing material
• Sand/salt Mixes – don’t melt ice, but are used for added traction

Select materials based on your budget, temperature, and environmental impact. Each material has its own advantages, and the effectiveness varies, which determines the price to be set for the customer.

How to Charge for Salting Parking Lots

There is nothing like a one-size-fits-all approach. Several factors influence the pricing, and each of them is explained below:

• The size of the Lot: If you are managing the parking lot of a small retail store, then it may only need 200 lbs of salt, while a shopping mall’s parking lot will require a comparatively larger amount, which can be in tons as well.
• Weather Conditions: If winter begins with a light frost, a single application is sufficient. However, if a storm occurs, frequent applications may be necessary.
• The Choice of Deicing Material: Some clients prefer using eco-friendly deicing solutions, which can be expensive. For example, if the client requests magnesium chloride, it is more expensive than any other de-icing material. Therefore, the charges will also be higher.
• Frequency of Service: The frequency of service, or the number of times you are salting, matters, and prices are based on either a per-storm or multiple times during prolonged freezing conditions.
• Special Requests: Consider areas such as entries, walkways, or high-traffic areas before finalizing the price with the client, as they may require additional treatment.

Pricing Models for Salting Parking Lots

There are different ways contractors charge for applying salt to your parking lot. Some of the commonly implemented pricing models are mentioned as follows:

• Per Application Pricing: A single price for every salting job, depending on the size of the area.
• Pricing is based on the weight of the salt: Some contractors consider the amount of salt used for spreading. They charge according to the per-pound or per-ton rate of salt. This ensures that clients pay exactly depending on the amount of salt used.
• Seasonal Contracts: This method provides you with peace of mind. Contractors charge a fixed price for unlimited salting throughout the winter.
• Hourly Rates: Generally, hourly rates are not used for salting. However, in some cases, it is applicable when labour and equipment costs need to be included.

Calculating Costs

Before quoting a price to the customer, you should be aware of your recurring costs. Therefore, avoid underbidding by calculating the exact costs of the materials you will use during the process.

The main cost depends on the bulk road salt supply, which ranges from $50 to $100 per ton. The next major cost factor is labour. The wages of the staff and the time required to complete the project add up to the total cost. Also, include equipment such as plows, salt spreaders, and trucks, along with transportation and fuel, in the overhead costs.

After accounting for all cost factors, add approximately 20-30% to the total to ensure a profitable outcome upon project completion.

Average Pricing in the Industry

As we all know, prices will vary depending on the location, but here are some general averages to consider for the average pricing charged in this industry. If you are interested in salting a small parking lot, typically around 5,000 to 10,000 square feet, the cost can range from $300 to $600 per application. For commercial properties exceeding 100,000 square feet, the cost increases to $800 to $ 1,500 or more.

The cost also varies depending on the setting you are dealing with. If you manage a small business or residential clients, they will likely pay less due to budget constraints. At the same time, large industrial properties will pay you more.

Contracts and Service Agreements

Contracts are essential for maintaining your business and ensuring the safety of your clients. A well-planned contract clearly outlines the type of work that will be done, the frequency of salting, the materials used, and the pricing structure. It should also cover the liability and terms of emergency services. For smaller projects, a one-time contract can be a suitable option. However, for larger clients, seasonal contracts bring more stability and steady profits.

Communicating Value to Clients

Customers not only pay for salting, but they also consider safety, protection from liability and peace of mind from the contractor. Therefore, ensure that you clearly communicate the value of your service to the client. Additionally, explain how proper salting can help prevent slips and falls, as well as avoid legal complications for their business. By conveying all these points to the customer, it reflects that your service is more than just another expense.

Tips for Maximizing Profit

• Buying the bulk salt in the off-season when prices are lower can improve the profit margins for the contractors.
• Plan your route wisely to save fuel and time, especially when managing multiple properties.
• Maintain the equipment in a proper working condition to prevent unexpected breakdowns during the peak season. This ensures peace of mind, and the customers are served without interruption.

Common Mistakes to Avoid

Most snow removal contractors make mistakes without even realizing them. Avoiding them can make your business more sustainable in the long run. They are:

• Underpricing
• Overusing salt
• Failing to estimate overhead costs
• Not following the weather forecasts

Legal and Liability Issues

Salting reduces the chances of slips and falls. However, you can still face legal complications. Therefore, it is advisable to have the right insurance readily available. Maintaining detailed service logs will also protect you from having to prove work in case of any disputes. Also, ensure that you and your crew are familiar with the local rules and regulations regarding de-icing materials and environmental considerations, which can vary from place to place.

Future Trends in Salting Services

• Increasing demand for eco-friendly de-icing materials.
• GPS tracking is embedded in trucks to maintain transparency with the clients.
• Using weather data analytics to predict the demand for salting.

Conclusion

Charging for salting a parking lot is all about finding the balance between cost, value and profits. By considering the factors mentioned above, you can offer competitive prices that satisfy both yourself and your clients. Salting is not just about spreading the salt; it is also about building confidence and trust among clients.

Get ready for this winter and keep your clients safe. Get your bulk road salt from Canada Salt Group Ltd to easily manage any parking lot. Using the right materials, expert guidance, and a reliable supply, you can provide top-notch service to your customers while protecting your business. Contact us today for a free quote.