Originally posted on January 03, 2013
Many snow contractors sell their services as almost 'snow insurance', meaning their customers pay for the ability to respond and manage risk when a storm hits. That readiness is really a capacity issue. Capacity has several factors, including labor, equipment, materials and cash flow. Snow & ice management services are sold in several different models, but no matter what price model is agreed upon, the same level of service expectations and direct costs exist to provide a minimum and constant state of readiness. No matter how the contract is sold, a best practice for providing dedicated capacity is requesting customers make minimum payment(s) to recover the costs of overhead. This is particularly true in time and material markets where it may not snow at all in a given year and where clients expect you to be prepared for every type of snow & ice scenario.
Image Source - https://www.flickr.com/photos/uwwresnet/6685874107/player/