MAINTENANCE: No Business Like Snow Business

Many landscape contractors operating in northern states believe all they need to take on winter snow removal is lots and lots of snow.
 
In fact, the typical snow fighter is the owner of a landscape company earning less than $100,000 in snow-related revenue last winter, and who depends on snow for nearly 30 percent of his or her overall business, according to research conducted by sister publication Snow Magazine.
 
While an ample amount of snow is good, it’s only part of the equation, says Brian Akehurst, president of Akehurst Landscape Service in Joppa, Md., who has dedicated snow removal crews, plow trucks, salt spreaders and loaders assigned to commercial job sites. While snow removal can be a profitable service for an established contractor, there are ways for a novice to enter into this market without having to invest a lot, he says.
 
First and foremost, Akehurst advises aspiring snow fighters to check with their insurance agents to make sure their company has the appropriate coverage for snow removal and to meet their clients’ specific insurance requirements.
 
The least expensive way to enter into snow and ice management is sidewalk clearing, which is always in demand, Akehurst says. Shovel crews attack walkways and steps and generally require shovels (between $12 and $15 each), 5-gallon buckets and sidewalk-safe ice melt (between $10 and $15 per bag). A contractors can upgrade his crew by adding a professional-grade snow blower, which ranges from between $600 and $2,000 depending on quality and horsepower, he says. “If you are in lawn maintenance you could add a plow or blower attachment to your riding mower for a couple hundred bucks,” he says.
 
However, a contractor with his sights set on small parking lot work will need to outfit his truck with a professional-grade snow plow, which starts at around $3,000, and a small tailgate spreader, which can cost upward of $2,000, Akehurst says. Larger lots require larger and more expensive, equipment.
 
Entry-level work is easiest to price by the hour, and depends on what the base hourly rate is for your particular market, Akehurst says. “Once you gain the experience and perform job costing and comparisons of parking lot sizes to hours required to clear them, you can move into per-inch, per-push and seasonal contracts,” he says. “These types of contracts, when priced correctly, can be more profitable for your company than the hourly method.”
 
Akehurst recommends selling snow removal throughout the year. “If you want the work you will need to be out there selling all year because that is what your competition is doing,” he says.