How to Bid Commercial Snow Removal Contracts
Commercial snow removal is where the real money is in plowing. A single parking lot contract can pay $500-5,000 per storm — more than 20 residential driveways. But bidding commercial work requires understanding site assessment, pricing models, and what property managers expect in a proposal.
Step 1: Site Assessment
Before writing a number, visit the property and document everything:
- Measure the lot: Use Google Earth to get square footage, then verify on-site. A 50-space parking lot is roughly 15,000-20,000 sq ft.
- Count obstacles: Islands, light poles, dumpster enclosures, cart corrals, fire lanes, handicap spaces. More obstacles = more time = higher price.
- Identify snow stacking areas: Where will you push the snow? Lots with nowhere to stack require hauling — a major cost add-on.
- Measure sidewalks: Linear feet of sidewalk, number of entrances, ADA ramps. Sidewalk clearing is always a separate line item.
- Note the surface: Asphalt, concrete, pavers, gravel. Gravel lots require shoes on the plow blade (add wear cost).
- Check access: Can you get a truck in easily? Tight entrances or narrow lanes slow you down.
- Ask about hours: When does the business open? 24/7 operations require middle-of-the-night service. Retail lots must be clear by 7 AM.
Step 2: Estimate Your Time and Costs
Time estimation by lot size:
| Lot Size | Plow Time (2-4" snow) | Plow Time (6-8" snow) | Salt Time |
|---|---|---|---|
| Small (10,000-20,000 sq ft) | 20-40 min | 40-75 min | 10-15 min |
| Medium (20,000-50,000 sq ft) | 45-90 min | 90-150 min | 15-25 min |
| Large (50,000-100,000 sq ft) | 90-180 min | 3-5 hours | 25-45 min |
| Extra large (100,000+ sq ft) | 3-5 hours | 5-10 hours | 45-90 min |
Cost per visit (your expenses):
- Fuel: $15-40 per lot (trucks burn 3-5 gal/hour while plowing)
- Salt: $8-15 per 1,000 sq ft (bulk rock salt at $60-120/ton)
- Equipment wear: $10-25 per lot (cutting edges, hydraulic fluid, wear items)
- Labor: $25-50/hour per operator (if using employees)
- Drive time: Factor in travel between sites
Step 3: Choose a Pricing Model
| Model | Best For | Rate Range |
|---|---|---|
| Per push (flat rate per visit) | Small-medium lots, simple sites | $150-800 per push |
| Per inch (tiered by depth) | Any size, fairest model | $75-400 per inch tier |
| Seasonal (fixed monthly/season) | Large lots, multi-year contracts | $2,000-25,000/season |
| Hourly | Very large or complex sites | $125-250/hour per truck |
Per-push pricing (most common for mid-size lots):
| Lot Size | Per Push (2-4") | Per Push (4-8") | Per Push (8-12") |
|---|---|---|---|
| Small (20-30 spaces) | $150-250 | $225-375 | $300-500 |
| Medium (50-100 spaces) | $300-500 | $450-750 | $600-1,000 |
| Large (100-200 spaces) | $500-900 | $750-1,350 | $1,000-1,800 |
| Extra large (200+ spaces) | $800-1,500 | $1,200-2,250 | $1,600-3,000 |
Salt/de-icing pricing (always separate):
| Lot Size | Salt Application |
|---|---|
| Small (20-30 spaces) | $100-200 |
| Medium (50-100 spaces) | $200-400 |
| Large (100-200 spaces) | $350-700 |
| Extra large (200+ spaces) | $600-1,200 |
Step 4: Write the Proposal
A professional proposal includes:
- Scope of services: Exactly what you will do — plowing, salting, sidewalks, hauling. Be specific.
- Trigger depth: At what snowfall depth do you begin service (typically 1-2 inches).
- Response time: How quickly you will be on-site after trigger depth is reached (typically 1-2 hours).
- Service frequency: Will you plow during the storm or only after it ends? How many passes per event?
- Pricing: Itemized by service with depth tiers. Separate line items for plowing, salt, sidewalks, and any extras.
- Insurance: Attach your Certificate of Insurance showing $1M+ GL and commercial auto.
- Contract terms: Season dates, payment terms (net 30 is standard), cancellation clause, indemnification.
Pro tip: Include 2-3 pricing options in your proposal (per push, per inch, and seasonal). Property managers like having choices, and it shows you understand the market. The seasonal option should be priced 10-15% above what per-push would average — you are providing budget certainty, which has value.
Seasonal Contract Pricing Formula
To price a seasonal contract:
- Calculate your per-push rate for the site
- Multiply by average number of plowable events in your area (check 10-year historical data)
- Add all salt applications (average events x salt rate)
- Add all sidewalk clearing
- Add a 15-20% buffer for heavy snow years
- Divide by season months (typically 5: November-March) for monthly billing
Example: Medium parking lot (75 spaces)
- Per push rate: $400
- Average plowable events: 18/year
- Plowing total: 18 x $400 = $7,200
- Salt per application: $300 x 22 events = $6,600
- Sidewalk clearing: $150 x 18 events = $2,700
- Subtotal: $16,500
- 15% buffer: $2,475
- Seasonal price: $18,975 → round to $19,000
- Monthly billing: $3,800/month x 5 months
Common Bidding Mistakes
- Not visiting the site: Bidding from Google Maps misses obstacles, grade changes, snow stacking limitations, and access issues. Always visit in person.
- Forgetting salt costs: Salt is often 40-50% of the total cost on a commercial lot. Under-pricing salt turns a profitable contract into a loss.
- No depth tiers: A flat rate regardless of snowfall means you lose money on every big storm. Always tier your pricing by depth.
- Under-pricing to win the bid: Winning a commercial contract at below-cost pricing just means you are losing money all season. Price for profit — you can always negotiate 5-10% off, but you cannot negotiate your way out of a bad base price.
- No escalation clause: Multi-year contracts should include a 3-5% annual price increase to account for fuel, salt, and labor cost increases.
Build Professional Snow Removal Bids
plow.best has pricing calculators, contract templates, and proposal generators for commercial snow removal.
Create Your Bid →