The Winter Wake-Up Call: Are We Pricing Snow Removal Contracts Responsibly?

As I look out my window in horticulture hotbed of Guelph, Ontario, I see a relentless winter that hasn't graced us in years. Every morning, a fresh blanket of snow demands attention, pushing snow removal contracts to their limits. This season serves as a stark reminder that light winters don't last forever, and it's time for a serious industry reset.

.For years, many of us in the snow removal business have been guilty of a dangerous gamble: pricing contracts based on hopes for a mild winter. We've seen companies underbid, banking on minimal snowfall to turn a profit. But Mother Nature doesn't play by our rules, and this year, she's calling our bluff.

The current situation is unsustainable. Companies are burning through salt at twice the rate of previous years, and those low-priced contracts are either hemorrhaging money or cutting corners to stem losses. Neither outcome serves our clients or our industry well.

Even more concerning is the growing trend of large companies snatching up contracts only to subcontract them at 20-25% below the bid price. How can these smaller firms possibly provide quality service at such rates? It's a recipe for corner-cutting and subpar work.

Remember when high-quality standards and detailed RFPs commanded respectable price points? Those days seem long gone, replaced by a race to the bottom that benefits no one in the long run. We're seeing contracts that can barely cover the cost of salt, let alone labor and equipment.

It is time for a reality check. We need to price our services based on average winters, not best-case scenarios. We must account for the true cost of providing reliable, high-quality snow removal services, including fair wages, proper equipment, and adequate supplies.

This challenging winter could be the wake-up call our industry needs. It's an opportunity to reassess our pricing strategies, to educate clients on the real costs of dependable snow removal, and to recommit to providing services we can be proud of – regardless of what the weather throws our way.

Let's use this season as a catalyst for change. It's time to stop hoping for light winters and start planning for whatever comes our way. Our clients, our employees, and our businesses deserve nothing less.

Cheers!

-Greg