Securing snow removal contracts is crucial for growing a snow plowing or landscaping business, especially in regions that experience heavy snowfall. Whether you’re targeting residential or commercial clients, landing contracts can provide a steady income during the winter months.
Here’s a step-by-step guide on how to get snow removal contracts, along with the types of contracts available, potential drawbacks, and what to avoid.
What Are Snow Removal Contracts?
A snow removal contract is an agreement between a service provider and a client that outlines the terms for removing snow and ice from a property.
These contracts ensure that snow and ice are cleared during winter weather, safeguarding businesses and homes against potential hazards. Contracts often specify how, when, and how much snow will be removed, and may include additional services such as salting and de-icing.
Why Are Snow Removal Contracts Necessary?
Snow removal contracts provide a clear and legally binding agreement between property owners and snow removal companies. These contracts outline –
- Reliable Income Stream: Snow removal is a seasonal business, but having contracts in place guarantees a steady income even during unpredictable winters.
- Client Assurance: Contracts provide peace of mind to clients, ensuring that their properties will be safe and accessible regardless of weather conditions.
- Legal Protection: A formal contract protects both the client and the service provider from disputes, defining exactly what services will be provided and the expectations for payment.
Types of Snow Removal Contracts
There are several contract structures available, allowing service providers to adapt based on client needs and the frequency of snow events:
Time and Material Contracts
The cost is calculated based on the time spent on the job and the materials used, such as salt, fuel, and de-icing products. Offers flexibility, especially in unpredictable snowfall regions. Also, it can be more expensive if snowfall is heavy, as the time and materials required will increase.
Per Inch Contracts
Clients are charged based on the depth of snow removed. Provide predictable pricing in regions with consistent snowfall. Most importantly, it can be less advantageous in regions with fluctuating snowfall patterns.
Per-Push Contracts (Per Occurrence)
A fixed fee is charged each time snow is cleared, regardless of the snowfall amount. Provides both parties with predictability and ensures regular payments. Unfortunately, it may not be the most cost-effective option if snowfall is minimal.
Seasonal Contracts
The client pays a set fee for the entire season, regardless of how often snow removal is needed. This contract is common for commercial properties, ensuring snow removal throughout the winter months.
How to Secure Snow Removal Contracts
Securing contracts requires a strategic approach. Here’s how you can increase your chances of success:
- Target Both Residential and Commercial Clients: While commercial contracts are more lucrative and longer-term, don’t ignore residential clients. Homeowners’ associations and property management companies are potential high-volume clients.
- Submit Well-Crafted Proposals: For large commercial contracts, submit detailed proposals to businesses such as hospitals, universities, or shopping malls. Make sure your proposal outlines all services, costs, and any additional benefits your company provides, such as quick response times or eco-friendly practices.
- Network and Advertise Locally: Attend local business events, advertise in winter services directories, and engage with property management companies to put your name in front of potential clients. Offer competitive pricing and package deals to win over clients from competitors.
- Invest in the Right Equipment: Make sure your fleet of snowplows and de-icing equipment is ready for action. Commercial clients, in particular, will expect you to handle large areas efficiently, and equipment such as ATVs can help with smaller spaces.
Drawbacks of Snow Removal Contracts
While snow removal contracts offer several benefits, they also come with certain drawbacks that property owners should be aware of. Understanding these potential downsides can help you make an informed decision when considering a contract.
Weather Dependency
Snow removal services rely heavily on unpredictable weather. Contracts such as time and material or per-inch can leave you with low profits in milder winters.
High Overhead Costs
Maintaining and repairing snow removal equipment, purchasing de-icing products, and paying for labor can significantly reduce profits if not managed correctly.
Liability
Snow removal carries risks, including potential injuries or accidents on properties you service. It’s essential to carry adequate liability insurance to protect your business from lawsuits.
Things to Avoid When Pursuing Snow Removal Contracts
When seeking a snow removal contract, it’s crucial to be mindful of potential pitfalls to avoid. By understanding common mistakes, you can ensure a positive experience with your snow removal provider –
- Underestimating Costs: Don’t make the mistake of underpricing your services. Factor in equipment wear, fuel, and labor costs to avoid operating at a loss.
- Unclear Contracts: Vague or poorly written contracts can lead to disputes. Clearly outline what services are included, what happens in the case of extreme weather, and any additional fees for services like salting.
- Overcommitting: It’s tempting to take on as many contracts as possible, but spreading your resources too thin can hurt your reputation. Make sure you have the equipment and manpower to handle all clients efficiently.
End Notes
Securing snow removal contracts requires preparation, networking, and a solid understanding of your costs.
Whether you target residential or commercial clients, having the right pricing strategy and contract in place is key to turning a profit in the snow removal industry.
Ensure that your contracts are clear, and fair, and include provisions for different snow conditions to protect both your business and your clients.
By following these guidelines, you’ll be well-positioned to grow your snow removal business and secure long-term contracts.
