Snow Removal Pricing Factors
Much like your local Fire Department, there are certain fixed cost that we incur to provide a responsive snow removal service. In fact, our variable costs, which include fuel, parts and repairs, fluctuate about 5% on any given winter. On heavy winters our expenses increase about 5% and on light winters they decrease about 5%.
Most of our expenses, like facility site payment, operator payroll, support staff & mechanic payroll, insurance, equipment payments, marketing, communications and taxes are all fixed and do not change regardless of the severity of the winter.
Based on an analysis of our current expenses we have determined that $800 is the minimum cost that we need to charge during the ’18/’19 season in order to cover these fixed costs and make a reasonable profit so that we can invest in our business to continue to improve upon our performance and customer service. About 75% of Tahoe Donner homes are priced at $800. The remaining 25% of homes are priced above $800 and their price varies depending upon the driveway’s difficulty, size and amount of snow accumulation.
Also, the time actually spent clearing driveways represents only one portion of the labor needed to maintain a reliable snow removal service. We have mechanics, supervisors and office staff working year-round to ensure that your snow removal experience is reliable and professional. Much of your snow removal fee is applied to these hours that aren’t directly spent clearing your driveway but are needed to provide a reliable, quality service.