Snow Removal

Like most kids, Tom Canete looked forward to a snow day. But unlike most, he wasn’t using the day off to sleep in. He was up as early as ever with his grandfather’s snow blower, ready to make some money. “It quickly got to the point where I had steady customers,” says Canete, who now owns both a landscaping firm and a full-service snow management company. When he started Canete Landscape and Garden Center, it was a no-brainer that he’d also offer a snow service. Today, he’s actually made that business a separate entity and Canete Snow Management is thriving. He says it’s a segment other landscapers might consider, but there’s a lot to learn.

One of the biggest differences is the danger factor. While landscaping can be a dangerous field, Canete says that dealing with snow and ice is a whole new ballgame. Along with that comes a heavy price tag for insurance policies. Canete says he carries a $2 million policy for landscaping – but a $4 million policy for his snow business. He says slip-and-fall lawsuits are prevalent and it’s become more challenging for new businesses to even secure snow plow insurance.

Canete also says the equipment is not cheap and you can typically expect half the life out of a truck that is used for snow. “They’re working harder than ever, running long hours, and putting salt down which is corrosive on metal,” he says. To help preserve the life of his own fleet, which includes 75 plows, salters and trucks, Canete has recently begun using a salt deactivator that reduces the effect salt has on his equipment.

Chad Oberson, President of Oberson’s Nursery and Landscapes, in Fairfield, Ohio, says he started snow removal in 2003 to keep revenue coming in during the winter, and now 75 percent of his $4 million in revenue comes from snow business. Oberson had 21 guys working for him, but cut down to 11 and now sub-contracts some work to excavation contractors and construction companies, he says.

“It’s expensive to keep all those guys busy,” he says of permanent employees.

Oberson also spends about $400,000 on equipment purchases every year, but saves money because he buys in bulk, and “it’s pretty easy to negotiate prices,” he says. Oberson says he sees about $350,000 in sales from the equipment.

“My way is not the right way for everyone,” he says. “You’re not going to get the cost savings on the equipment.”

For landscapers just starting out, Canete suggests talking to your existing client base about adding the service, and building from there. He advises not going too far beyond your geographical area in the beginning. It can take longer than you expect to get the job done and equipment can break down on the road.

While the work requires long, overnight hours, Canete says he loves it as much as he did when he was young.

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