How Much to Charge for Snow Removal? Get a Pricing Guide

What Are the Factors Affecting Snow Removal Pricing Formula?

Before thinking over how much to charge for snow removal, you must keep a note of the factors that affect your cost. Certain factors are responsible for deciding the cost which are listed below.

Amount of Snow

It is one of the most crucial factors in snow removal costs. Considering this factor is highly important when you work in an area that gets a lot of snow or your pricing model is per inch. So you must consider the amount of expected snowfall when you create an estimate for snowfall service.

Equipment Used

The equipment that you use for snow removal work also affects your cost. In case if you use expensive equipment then you must charge for more.

So different equipment has different costs. The average cost of a gas-powered snow blower is $250 to $2,300, but for an electric-powered snow blower, it is $100 to $900.

Driveway Size

The size of the driveway is also a cost factor in snow removal, especially for residential sites. For the larger driveway size, you have to pay more price because it takes more time and effort to clean. Some of the factors that decide the driveway cost are as follows –

• Condition of driveway
• Length
• Design
• Slope
• Material

Area of the Site

Usually, there are four areas where you need to remove snow –

• Driveways
• Sidewalks
• Parking areas
• Roofs

Roofs need effort so they are expensive but sidewalk snow removal is the least expensive. So it also matters what area you are dealing with.

How to Charge for Snow Removal?

Snow removal business aspirants must focus on the below points to settle down the perfect price. To find out the perfect solution for charging for snow removal, you need to incorporate the strategy and factors below.

Choosing the Right Pricing Model

There are certain pricing models available for your business. Each model has its own concept and thus you must choose the perfect one.

Per Event – (average cost – $30 to $100)

This kind of pricing model is very suitable for locations that receive light or infrequent snowfall. However, it doesn’t work well for areas that receive heavy snowfall during winter.

You can skip using the snow removal pricing formula. It might be simpler to charge a flat rate for any rental within 24 hours. However, you must confirm the number of visits with your client before finalizing the deal.

Per Push or Visit – (average cost – $30 to $100)

In this kind of model, snow removal companies charge on every visit on the site for snow removal. Customers who want to uncover the average amount of snow events in their area per season are likely to choose this kind of option. This helps them to figure out the ideal budget for the whole year. So you must have the proper idea. Professionals must include material costs and overhead costs to avail the profitable price.

Seasonal Contracts – (average cost – $200 to $600)

Customers need to pay a one-time flat fee, similar to a subscription service. This covers snow removal for the set period that professionals identify and mention in the contract. Customers need to make a payment one time and their service availing starts from there. Snow removal companies need to provide the service as per the contract for a specified time. This kind of model is ideal for those areas that receive heavy snowfall.

Hourly – (average cost – $25 to $75)

Per-hour charging is one of the simplest processes to find snow removal jobs. Multiply the cost by the number of hours taken to complete the job. After that add the material cost, overhead cost, and markup. The snow removal pricing formula in hourly rate will be as follows –

Total price = number of hours x hourly rate x number of workers

For instance, if your hourly rate is $100 and you spent 4 hours removing snow on the site with three workers, then the total price will be as follows –

Total price = $100 x 4 x 3 = $1,200

In this kind of pricing model, your customer would likely know an estimate of how long it will take to remove the snow.

Finding Out Labor Cost

You cannot avoid labor costs in any pricing model when you think on how to price snow removal. Hence, you must determine what labor cost you will decide for your client. For this purpose, you need to first determine how much time the plowing area will take.

For this purpose, you need to use the below formula

Hourly Rate x number of workers x number of hours

Suppose a snow removal area needs 4 hours and three contractors work on it at the price of $30 per hour. So labor costs will be as follows –

$30 per hour x 3 workers x 4 hours = $360 (total labor cost)

Calculating Overhead Rates

The overhead cost will be the expenditure required for running a successful business. In the case of a snow removal business, you need to consider the following expenses –

Equipments like snow blowers, plows, and salters

• Insurance
• Vehicle maintenance and gas
• Employee wages
• Snow removal marketing cost
• Purchasing snow removal business software

Considering Elements

There are certain elements on which the cost of snow removal or snow plowing depends. It includes –

• Type of service that you offer (blowing snow or pushing snow with a plow)
• Examining the price of competitors
• Determining the snowfall patterns of the region
• Property type (residential or commercial property)
• Property size (how long it will take to complete the job)
• Accessibility of the area
• Equipment needed
• Additional snow plowing services (if any)

Apply Your Markup

Markup covers additional amounts that you charge that make a profit for you. After applying markup, you will get the percentage of revenue, called profit margin, that you will gain.

Total job price = All job cost + markup

In general, snow removal businesses consider a markup of 2 to 50% for the profit that depends upon the business.

Charging for Residential Snow Removal

You must have a clear idea of how much to charge for snow removal in residential areas. The average snow removal cost for residential sites are as follows –

• Snow plowing – $30 to $95/hour
• Snow shoveling – $25 to $75/hour
• Snow blowing – $25 to $75/hour
• Salt application – $20 to $40/hour
• Sand application – $20 to $40/hour

The residential snow removal pricing also depends upon the area that you are dealing with.

Charging for Sidewalk Snow Removal

Removing snow from sidewalks or walkways is also required in some sites as per the client’s request. However, you need to use a shovel or snow blower, and this service can be charged between $25 to $75 per hour.

Charging for Roof Snow Removal

Roofs are quite a sensitive area in terms of removing snow as compared to groundwork. The ideal cost for this is $200 to $3,000 as per roof size and snow removal equipment needed.

Charging for Commercial Snow Removal

If you are serving your snow removal service for a commercial site then the snow removal costs will be different from that of residential. There is a requirement for heavy equipment due to large areas in commercial sites.

When you use a commercial snow removal pricing calculator, you need to use the below snow removal pricing formula –

(hourly rate / 60 minutes) x (number of minutes you spend on the site) – (offered discount) + (tax applicable as per the state)

Moreover, other factors also contribute like –

• Number of labor hours needed
• Additional material or equipment
• The time you take to complete the service
• Square footage of the plowing area

How to Quote Seasonal Snow Plowing Contracts?

Considering the snow history of the particular region is the best way to determine the estimate of seasonal snow removal contracts.

Now take snow events of the past 5 years and then multiply the snow removal cost by that number.

If the average number of snow events for the region is 40 and your cost is $200 then $6,000 will be the charge for the season.

Remember that keeping your price fair is highly important. Never keep the price too high which could attract the clients. Moreover, don’t keep the price too low which makes your business unsuccessful.

Furthermore, you can consider estimating software to streamline your estimate process.

Tips for Better Snow Removal Pricing

• Do an accurate estimation of the job
• Perform proper market research to determine the current trends
• Cross-check the estimate once before make it finalize
• Don’t forget to consider time and accessibility
• Add minimum charge to ensure that small jobs are profitable
• Highlight your expertise

Difference Between Snow Removing and Snow Plowing

Snow plowing and snow removal are two different processes. Snow removal includes taking the snow load onto trucks and dragging it away whereas snow plowing means moving the snow from the driveway to another part of the property.

Verdict

So, how much to charge for snow removal? That’s what we have already covered in this blog. You must note that many factors define the cost so you need to consider all. Choose a price that is close to your business benefit. It should not be too high or too low as both could ruin your business.

Frequently Asked Questions