FERRANDINO & SON’S NATIONAL SNOW REMOVAL SERVICES

Pricing Models

When developing a pricing model for a multi-site portfolio, there are numerous factors to consider, including geography, property size and even your own internal resources who will have to process, validate and approve all of the associated billings. One thing you don’t need to consider is your scope of work.  Scopes of work are independent of your pricing model.  Every pricing model fits every scope and every scope fits every pricing model.

 

Review the 4 traditional pricing models for the

multi-site industry below to learn more about your options.

Per Push

The most well-known pricing model, it is a trigger-based model where the customer is charged for every visit to perform work. 

 

Geography: This model has no geographical limits and can be used anywhere across the country.

 

Property Size: This pricing model is best used on smaller footprints where service occurs from crews via a route-based schedule.  As parking lots grow closer to 60,000 square feet and more, this model becomes less effective.

 

Benefits:  Easy to follow.  Every service creates a billable event and the client can clearly understand what they are paying for.

 

Challenges: It can be administratively burdensome due to the amount of individual billing items and it promotes local stakeholders from rejecting individual services due to cost, putting the client at greater risk for slip and fall claims.

Per Event

A popular pricing model as an alternative to per-push which can be administratively burdensome, pricing is based on the total accumulation during individual snow events.

 

Geography: This model has no geographical limits and can be used anywhere across the country. 

 

Property Size: This pricing model is best used on medium to large properties, especially in instances where crews or equipment might be dedicated and not route-based. 

 

Benefits: Less administrative than per-push and easy to validate snowfall totals through a certified agency 

 

Challenges: Format becomes a challenge if deicing is included in the event ranges as the correlation between deicing services and snow totals aren’t necessarily linear. 

Seasonal

 An all-inclusive format that includes all plowing, shoveling, and deicing.

 

Geography: This format is popular is heavier snow markets but can be used in lower snowfall markets down to approximately 15-20 inches. 

 

Property Size: This model isn’t limited to small or big-box properties.  However, it can be operationally challenging at times for route based portfolios.

 

Benefits: Provides budget certainty and avoids the year to year fluctuation that comes with the other pricing models. 

 

Challenges: If you are not used to this format, it can be a difficult pill to swallow when snowfall totals are significantly less than normal.

Time & Materials 

As the name applies, you pay per hour for equipment and labor and pay for deicing materials as a cost per bag or per ton. 

 

Geography: This model has no geographical limits

 

Property Size: This model can be applied to any sized property but is very rare on smaller footprints. 

 

Benefits: This Is a great fit for significantly larger properties and those that have unusual operational challenges that prevent crews from working in a traditional manner. 

 

Challenges: Presents significant challenges to implementing cost controls and is generally not regarded as a common pricing model in most industries.

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