Snow Removal Pricing: Which Model Is Right For You?
When it comes to creating a snow removal plan for your commercial property, you have a few decisions to make. Among those decisions, is pricing. Most snow removal companies offer more than one pricing model, allowing property managers to decide what works best for them. The two most common types of snow removal pricing structures are “Per Push” and “Seasonal Flat Rate.” To help you decide which structure is best for you, we have compiled information on the pros and cons of each.
With a Per Push plan, you pay an established rate per service occurrence.
Per Push Pros
- The services provided are the services paid for, no more and no less.
- There is no inherent incentive for the provider to under-serve a client.
Per Push Cons
- There is little to no predictability of monthly expenditures.
- Because every service results in a fee being charged, you may question the need for service, which puts the placement of liability and risk in question if a service is refused.
- After a particularly harsh season, you may be tempted to make the switch to a Seasonal Flat Rate plan, which is a gamble.
Seasonal Flat Rate
A Seasonal Flat Rate plan means paying an established rate for an entire season, usually paid for in monthly installments.
Seasonal Flat Rate Pros
- Predictability of monthly expenditures
- Depending on contract specifics, you may request services without necessarily incurring any additional charges.
Seasonal Flat Rate Cons
- Depending on how mild or severe a given season is, the contract may seem like it is favoring either you or the snow removal company.
- In an effort to insure against unfairness to one party or another, snowfall caps, tiers, and floors may be written into the contract. Unfortunately, this negates the primary advantage of a seasonal contract, predictability of expenditures.
- Clients may confuse the service term with the installment schedule. The two are independent of each other, which means services may be provided during a month that does not include an installment payment and vice versa.
- You may be tempted to switch to a Per Push contract following a particularly mild winter, which is a gamble.
No matter which snow removal pricing structure you choose, the key is consistency. There is no long-term cost advantage/disadvantage to either because just as seasonal snowfall totals average out over a period of years, so does the relative total cost of either type of contract. To get the most out of your contract, stick with one plan for a minimum of five years.
Winter will be here before we know it, so contact Diaz Group today to get started on your snow and ice management. We offer both Per Push and Seasonal Flat Rate snow removal pricing. To learn more about our snow and ice management services, call 773-570-1637 or send us an email today!