How to Bid Snow Removal Jobs and Win More Work
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- How to Bid Snow Removal
Starting a snow removal business can be a great way to generate income during the winter months, especially if you’re a landscaper or aspiring entrepreneur looking to expand your services.
In this guide, you’ll learn how to bid snow removal jobs, price your services, find the right projects, and present professional bids to stand out from the competition.
1. Identify suitable snow removal projects
When bidding snow removal jobs, evaluate the types of properties you want to work on.
- Residential jobs, like driveways and sidewalks, are smaller and can be a good fit for beginners with limited equipment. These jobs often require quicker turnaround times since homeowners want clear access right after a snowfall.
- Commercial properties, such as office buildings and shopping centers, are larger and require more time and equipment. Clients may need snow removed overnight to ensure the area is clear for business hours.
- Municipal contracts, like clearing snow from streets and public spaces, are often lucrative but demanding. As a new business owner, municipal jobs may be out of reach until you have more specialized equipment like large plows or salt spreaders.
Here are several resources to help you find opportunities:
- Search the federal government’s official contracting website, SAM.gov. It’s an excellent resource for finding snow removal contracts related to federal buildings, military bases, and other government facilities.
- Visit the websites of city and county governments, which may post snow removal opportunities. For example, you might find opportunities on sites like NYC OpenData for New York.
- Network with property management companies, which often seek snow removal services for their commercial properties.
- Check your local Chambers of Commerce to see upcoming projects in the area.
- Create a business profile on lead generation sites—like Angi, HomeAdvisor, or Thumbtack—to connect with homeowners and commercial businesses.
- Browse bidding directories, like BidContract, for snow removal bids from local, state, and federal governments.
2. Know the snow removal pricing models
Before you start bidding on snow removal, you’ll want to get familiar with the different pricing models you can use to price your services.
The most common types of snow removal contracts are:
- Per push: Your client pays you every time you clear (push) snow, usually based on the size of the area or how much snow falls. If it snows three times in a week and you clear snow each time, you get paid three times. This can be ideal if you’re servicing a region known for unpredictable snowfall, but your income can vary. The average cost per push is $30–$70.
- Per event: Your client pays you for each snowfall event, which might be for a random storm or snowfall amount. This gives you flexibility, but there’s unpredictability with timing and pay. If you clear snow several times during a large storm, you’re still only paid once for that event. The average cost per event is $30–$100.
- Seasonal: You and the client agree to a flat rate for the entire snow season. This type of contract gives you consistent revenue. But if the season has more snow than expected, you could end up working more without additional pay. The average cost for seasonal contracts is $200-$600.
The type of contract you choose should depend on what best suits your equipment and resources. For instance, if you’re just starting out and only have some basic equipment, residential per-push contracts might be a good fit.
On the other hand, if you’re plowing commercial properties for the entire winter season, a seasonal contract may be best.
READ MORE: Service pricing strategies for your business
Seasonal considerations
When you’re getting ready to bid snow removal, consider seasonal demand and trends. Snowfall can vary significantly from year to year, so it’s helpful to research historical weather patterns in your area.
For example, some winters might have frequent, smaller snowfalls. Others may have fewer but heavier storms. Knowing the trends helps you anticipate your workload and price your bids accordingly.
Use a weather app like Weather Underground, great for snow plowing businesses looking for reliable weather forecasts.
READ MORE: Top 10 Snow Removal Apps to Master Winter
Also, consider that some clients will need service all winter long, while others may only require help during big storms.
Residential clients may want their driveways and sidewalks cleared immediately after a storm. Commercial clients, on the other hand, often need parking lots and walkways cleared overnight so they’re ready for business hours in the morning.
3. Conduct site inspections
Before you bid on a snow removal project, do a site inspection to understand the scope of the job. Walk the property to assess obstacles like curbs and fire hydrants that might be hidden under snow. Estimate how long the job will take and what equipment will be needed.
For example, on a residential property, you may need to clear tight spaces or avoid damaging flower beds.
For a commercial property, you might need to plan where to pile large amounts of snow without blocking access to roads or walkways.
4. Price your equipment and materials
Whether you charge per push, per event, or seasonally, the first step pricing your snow removal service is to list all the equipment and materials you’ll need for the job. This includes snow plows, salt spreaders, shovels, and de-icing materials like salt or sand.
If you’ll need to rent equipment—such as larger plows or snow blowers—include those costs as well.
Price your materials accurately when bidding snow removal jobs. Reach out to your vendors or local suppliers to get pricing for things like de-icing salt, fuel, and even spare parts for your equipment.
By calculating the costs of all the necessary materials and rentals, you’ll have a better understanding of your expenses. You’ll know that your bid covers the cost of the job without undercutting your profits.
READ MORE: Professional snow removal equipment: 10 tools you need
5. Estimate your labor costs
The next step for pricing your service is to determine what you’ll charge your client for labor.
Once you know what the plowing area is, use the square footage to estimate how long the job will take.
Then you can use this pricing formula to calculate the total labor cost:
Hourly rate x number of workers x number of hours
As an example, assume that plowing a parking lot will take two hours and two snow removal contractors who earn $30 per hour.
Your formula will look like this:
Total labor cost = $30 per hour x 2 workers x 2 hours = $120
READ MORE: How much to charge for snow removal
6. Add your overhead and markup
Overhead costs are the operating expenses required to run your business, and they’ll include:
- Employee wages
- Equipment, such as salters, plows, and snow blowers
- Gas and vehicle maintenance
- Insurance
- Business software
- Advertising costs
To calculate your overhead rate, add up all your overhead costs for a given month. Then divide your monthly overhead amount by your total sales for the same month. Multiply it by 100 to get a percentage.
For example, if your monthly overhead costs are $1,200 and your total sales is $10,000, here’s how you determine your overhead rate:
($1,200 ÷ $10,000) x 100 = 12% overhead rate
Markup is the additional amount you charge after covering your costs so you can turn a profit from your services. The percentage of revenue that you take home after applying markup is your profit margin.
Here’s how markup should factor into your snow removal pricing:
Labor + materials + overhead + markup = total price for the job
As an example, assume your labor, equipment, overhead costs add up to $1,500. And maybe you’d like a 25% profit margin. This means the cost of a job should make up 75% of the total price.
You can use this formula to calculate your total price:
Total price = Cost ÷ (1 – profit margin)
7. Create a professional snow removal proposal
A great template takes the guesswork out of creating your contracts. And when you use tools like Jobber and DocuSign together, you can automatically draft a proposal your clients can sign digitally.
To create your contract, choose the basic contract template in DocuSign. Then do the following:
- From the Templates page in DocuSign, click NEW, then click Create Template
- Wait for the prepare view to load
- Type in your contract name and description
- Edit the template
- When you’re happy with the template, click SAVE AND CLOSE
When you connect Jobber to DocuSign, you can drag and drop your client’s property details (stored via Jobber) into your template.
Then save the document as a PDF file.
When you’re ready to send a quote from Jobber, attach the PDF file of your contract and hit send.
When you bid on a snow removal contract, include all the essentials and clearly outline the scope of services you’ll provide.
Include the price, the pricing structure, and when the client will be expected to pay.
Will you be plowing driveways, clearing sidewalks, salting or sanding surfaces, or offering emergency services during heavy storms?
Be specific about what’s included in the contract to avoid any misunderstandings. For example, if you’re handling a commercial property, detail whether you’re responsible for all parking areas and walkways, and how often you’ll provide service after a snowfall.
Service level agreements
Service level agreements (SLAs) specify how quickly and effectively you’ll clear snow. This could include:
- Response times after a snowfall.
- Maximum snow accumulation before you arrive.
- How many times per day you’ll service the property during a storm.
For example, you might guarantee snow removal within three hours of a snowfall ending. Or you might agree to begin plowing once two inches of snow have accumulated.
Insurance and liability information
When bidding on snow removal contracts, you also need to include information about your insurance and liability coverage.
Snow removal can be risky, and there’s always the potential for accidents or property damage. Your bid should outline your insurance coverage, such as general liability and workers’ compensation (which are both legally mandated in most states), that protect you and your client.
READ MORE: What business insurance do I need?
8. Follow up with the client
After submitting your bid, don’t forget to follow up. Sending a follow-up email can be the difference between landing or losing the job. It re-engages the client and helps you become top of mind again.
Use your follow-up email to address any questions or concerns the potential client may have. For example, a client might ask how you handle unexpected heavy snowfall. Or what measures you take to avoid damage to their property.
If the client is interested in moving forward, they might want to negotiate. This could involve adjusting your pricing or adding services. Be prepared to find a middle ground that works for both parties. For example, if the client wants a lower price, you could negotiate by offering fewer services, like skipping salting or reducing the number of site visits.
Not sure what to say? Try this email template:
Email subject line: Your snow removal project
Hi [customer name],
Thanks again for making time to join us for your snow removal assessment.
I just wanted to follow up on the quote we sent you a few days ago.
As a reminder, this quote is only valid until [date], so remember to approve it before then to guarantee this price.
We’re very excited to start this project with you. If you have any further questions, feel free to call me directly at [phone number]. I’d be happy to help!
Cheers,
[Name], [Title]
[Email] | [Phone number]
READ MORE: Quote Follow-Up Email Examples
Frequently asked questions
What are the best ways to present a bid for snow removal services?
Present your bid clearly and professionally in an email. That way, it’s easy to follow up on. Outline the scope of services, pricing structure, and any service level agreements. Include details on insurance and liability coverage to build trust. An organized, easy-to-understand proposal can make a big difference.
What are the common mistakes to avoid when bidding snow removal contracts?
Avoid underpricing, skipping site inspections, and failing to account for weather unpredictability. Not clarifying the scope of services or forgetting to factor in overhead costs can also hurt your chances of winning bids.
How do you estimate the time required for snow removal when bidding?
Consider the size of the property and typical snowfall for the area. Account for the capacity of your team and equipment. Factor extra time for potential delays, such as heavy snowfall or ice buildup.
What are the best strategies for winning snow removal bids?
- Offer competitive pricing without undercutting your profit margin.
- Tailor your bid to the client’s specific needs.
- Highlight your preparedness by communicating how you’ll handle different weather conditions.
- Follow up with clients after sending quotes to address any concerns.
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