How Much to Charge for Snow Removal: Pricing Formula & Guide
How Much to Charge for Snow Removal: Pricing Formula & Guide
How much to charge for snow removal
Snow cleanup is a critical service for areas with cold winter weather. Business owners can maximize their revenue and provide valuable services in their communities by establishing fair, strategic rates. In this guide, we'll help you decide how much you should charge to remain profitable and competitive.
Most snow removal services charge $40 to $150 per visit or $25 to $75 per hour, depending on the removal method and the depth of the snow. Shoveling manually takes longer and requires much more time and effort than using a snow blower or snow plow.
| Charging method | Estimated cost range |
|---|---|
| Per hour | $25 – $75 |
| Per visit | $40 – $150 |
| Per month | $100 – $400 |
| Per season | $200 – $1,000 |
Choose a pricing model for snow removal
If you're launching a snow removal business, start strong by choosing the right pricing model to attract customers and ensure profitability. Your pricing model will determine how you calculate rates and when you bill clients.
The key is balancing customer needs with your business goals, while also factoring in your region's typical snowfall since some models depend on snowfall frequency or volume.
There are several pricing models to consider. The most common ones include:
Per hour
Charging by the hour, normally between $25 to $75 per hour, suits jobs with unpredictable snowfall or when properties vary in size and difficulty. This flexible pricing model allows providers to bill fairly based on actual time spent, but it requires clear communication with clients about potential costs.
Per visit
Many providers charge a flat fee for each snow removal visit. Rates range from $40 to $150 per visit, depending on the size and complexity of the property. This model works well for customers who want service only after significant snowfall.
Per month
Some companies offer monthly snow removal subscriptions, charging $100 to $400 per month during winter. This model provides clients with unlimited or a set number of visits each month for a flat fee. It guarantees steady income for providers and appeals to customers who want hassle-free budgeting and regular service.
Per season
Some providers offer fixed prices for the entire winter season, usually ranging from $200 to $1,000. This option appeals to customers who want consistent service and cost predictability. It also helps providers secure steady revenue and plan resources more effectively.
How to calculate your costs
To set accurate rates that will yield a decent profit, you'll have to first figure out how much your snow removal business will cost to run. Research the rates of local competitors and factor in the cost of your equipment, labor, fuel, and other expenses:
Labor
Estimate the total hours required for each job, considering factors like property size, snow depth, and equipment used. Multiply the hours by your hourly wage or your employees' wages. Don't forget to include payroll taxes and any overtime pay when calculating your total labor costs.
Efficient scheduling and route planning can help you minimize labor expenses. Keep accurate records of time spent on each job to refine your estimates and improve profitability for future contracts.
Materials
Account for all materials and supplies needed for each job. Typical expenses include salt, sand, de-icer, and fuel for equipment. Track usage closely to avoid underestimating costs and ensure you cover all material expenses in your pricing.
Common supplies and equipment include:
Snow blowers and plows
Shovels and ice scrapers
Salt, sand, and ice melt
Spreaders (manual or motorized)
Fuel (gasoline or diesel)
Safety gear (gloves, boots, reflective vests)
Snow brushes and brooms
Overhead
Overhead includes all ongoing business expenses not directly tied to a specific job. These may include insurance, equipment maintenance, vehicle costs, office supplies, advertising, and administrative salaries. Divide your total monthly or annual overhead by the number of jobs you expect to complete to allocate a fair share to each service.
Markup
Once you've calculated your total costs (labor, materials, and overhead), add a markup to ensure your business earns a profit. Most snow removal companies use a markup of 15% to 40%, depending on market conditions and competition. Adjust your markup as needed to stay competitive while meeting your financial goals.
Review your pricing regularly to ensure your markup covers unexpected expenses and reflects changes in your costs or the market.
Other factors
Along with your personal operating costs, remember to take these other factors into account when calculating your snow removal prices:
Location: Urban cities and areas with heavy snowfall tend to have higher rates, while smaller towns have more competitive rates.
Snow depth: Charge more for heavy or frequent snowfalls. Many providers set a base rate for the first 6 inches and add fees for every additional 6 inches.
Property size: Larger driveways, walkways, or parking lots require more time and equipment, increasing your rates. Complex layouts, slopes, or obstacles also add to the cost.
Response time: Will you guarantee service within a certain amount of time after snowfall? Emergency or expedited services often cost more.
Additional services: Your pricing may also depend on whether you offer any other services. Removing snow from a roof or salting a driveway will increase costs. Common related services include:
Raking a roof
Commercial snow plowing
Salting or de-icing
Commercial snow removal pricing calculator
Commercial snow removal, especially for parking lots, requires larger crews, specialized equipment, and careful planning. Businesses depend on clear lots for safety and accessibility, so reliability and timely service are critical. Pricing reflects the increased scale, complexity, and liability compared to residential jobs.
Clearing around obstacles or parked vehicles takes more time and equipment. Plowing just the main lanes and entrances to a parking lot can reduce costs by 30% to 50% compared to full-lot clearing. Some companies use square-foot pricing, charging $0.10 to $0.30 per square foot.
| Lot size (square feet) | Per plow visit | Hourly rate | Monthly contract |
|---|---|---|---|
| Small (<20,000) | $150 – $250 | $50 – $150 | $300 – $500 |
| Medium (20,000 – 60,000) | $200 – $400 | $100 – $200 | $600 – $800 |
| Large (>60,000) | $400 – $700+ | $125 – $500 | $800 – $1,500+ |
Commercial clients often require detailed invoices and proof of service for liability and insurance purposes. They also may ask for multi-year contracts.
How to bid on snow removal jobs
Follow these steps to bid on snow removal to ensure you land the job:
Identify projects: Find properties or clients that need snow removal, such as businesses or large parking lots. Research their needs and local snowfall patterns.
Inspect the site: Visit the property to measure size and note obstacles, entrances, sidewalks, and slopes. Accurate info helps create a precise bid.
Choose a pricing model: Decide whether to charge per visit, per inch of snow, hourly, monthly, or per season. Define what services you'll provide.
Prepare a proposal: Write a clear bid outlining your services, prices, payment terms, and response times. Include details like snow depth triggers and extra fees.
Include insurance info: Show proof of liability and workers' compensation insurance to build client trust and meet legal requirements.
Submit and follow up: Send your bid professionally and follow up with the client to answer questions and show your interest.
Negotiate and finalize: Discuss terms if needed. Make sure both sides agree before signing the contract.
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.