Underlying the charge for snow removal services is the amount of time each job requires. You’ll need to build into the rate the cost of equipment plus an allowance for maintenance and repair. If it is necessary to spread salt or sand to deal with ice, you’ll need to bill the customer for the cost of those materials and your time. You can establish an hourly rate and bill customers for actual time on-site, or you can estimate the time a job will require and then charge a flat rate. Remember that square footage alone is not an adequate indicator of the amount of time required for a job: Take into account the shape of the land, whether it is level or hilly, and any other special conditions.
Commercial or governmental customers will likely agree to a contract that includes an advance deposit and a regular billing cycle based on the actual number of storms or billable hours. For individual customers, some snow removal companies offer two options: an automatic response anytime there is a snowfall of a particular depth (perhaps three inches) or services on an on-call basis. For an automatic response, there is generally an agreement that covers services to be provided and a requirement for an advance deposit representing an amount equal to a typical season’s work; refunds are given if there are fewer snowstorms than usual and additional charges are billable for a particularly difficult winter. Most snow removal services offer a discount to clients who sign up for an entire season. But, the important thing, you may require a commercial or special license and plate to operate a snowplow in business.