Snow Removal Pricing Formula: How Much to Charge for Snow Removal in 2024

1. Pick the right pricing model for snow removal

If you’re just starting your snow removal business, start off strong by choosing the best pricing model to attract customers and make profit.

Your pricing model will determine the snow removal pricing formula you use and how and when you charge your customers. 

It’s all about finding the balance between what works best for your customers and what keeps your business profitable. However, you should also consider how much snowfall that your region typically sees, as some pricing models are based on the frequency of snowfalls or the quantity of snow.

There are many different pricing models to choose from. The most common snow removal pricing models are:

Per event

A snow event is a snowstorm or considerable snow accumulation within a set time period, like 24 hours. This pricing model is most suitable for locations that don’t typically see consistent snowfall.

The average cost of snow removal per storm or snow event ranges from $30 to $100.

Per inch

If you offer snow removal services in a region that regularly sees heavy snow falls and large accumulations of snow, price jobs per inch of snow to profit more.

You’ll want to set a flat fee for the initial four to six inches of snow. If the snow event exceeds six inches, charge a fixed amount for every extra inch or switch to charging an hourly rate.

The average cost to plow four to six inches of snow is $60–$100. You can add $3–$10 for every additional inch of snow.

Per push/visit

For this snow removal pricing model, customers pay a set fee every time you come to clear their snow. If you choose to charge per push or per visit, you’ll need to account for all of your overhead and material costs to make sure your pricing is profitable.

The average cost for snow removal services per visit is $30–$70.

Use a per push or per visit pricing model for one-off snow removal jobs.

Hourly

Charging per hour is one of the easiest ways to price out snow removal jobs. 

Simply multiply your hourly rate by the number of hours required to complete the job. Then add on your overhead costs, cost of materials, and markup to stay profitable. 

The average cost for shoveling or snow blowing per hour is $25–$75.

Pro-Tip: Snow blowing and snow plowing are usually offered at the same rate. Plowing is usually faster but snow blowing is better for sidewalks, so it’s a good idea to offer both services if possible.

Seasonal contracts

For seasonal contracts, customers pay a one-time flat fee that covers snow removal for a set time period specified in the contract. It’s a popular pricing model for regions that experience heavy snowfall during the winter season.

The average cost for seasonal snow removal contracts ranges between $200 and $600.

Pro-Tip: To keep your seasonal contracts profitable, check the average number of snow events for your region and competitor pricing to make sure you’re not over- or under-charging. 
READ MORE:Pricing strategies for service businesses

2. Determine your labor costs

Regardless of whether you charge hourly, per-inch, per-visit, per-event, or seasonally, the first step for pricing snow removal is to figure out how much you’ll charge your client for labor.

Use the square footage of the plowing area to estimate how long the snow removal job will take you and your crew.

Then use this snow removal pricing formula to calculate the total labor cost for a job:

Hourly rate x # of workers x # of hours

For example, if plowing a large commercial parking lot takes 2 hours and two snow removal contractors who earn $25 per hour, your formula will look like this:

$25 per hour x 2 workers x 2 hours = $100 (total labor cost)

3. Determine your material costs

While most snow removal services don’t require material, you can offer additional services that may require materials such as salt, sand, or specialized chemicals. These materials should be factored into your pricing.

To determine materials costs for snow removal pricing, you need to:

1. Identify the materials needed
2. How much the materials cost per pound
3. Estimate the quantities of the material needed

Here’s what your formula will look like:

Cost of the material x amount used for the job = material costs

For example, let’s say the material is rock salt and it costs $0.20 per pound. Based on the amount of snow and the size of a driveway, you have determined that it will take 50 pounds of salt for the job. Your calculation would look like this:

$0.20 x 50 pounds = $10

You can add this total with your labor costs to end up with your direct costs for the job.

4. Calculate your overhead rate

Your overhead costs are the operating expenses required to run your snow removal company, including:

• Snow removal equipment, such as salters, plows, and snow blowers
• Snow removal insurance 
• Gas and vehicle maintenance
• Employee wages
• Snow removal advertising costs
• Snow removal business software

To calculate your overhead rate, start by adding up all of your overhead costs for a given month. Then divide your monthly overhead amount by your total sales for the same month. Multiply it by 100 to get a percentage.

Here’s what that formula looks like:

(Total monthly overhead costs ÷ total monthly sales) x 100

For example, if your total overhead costs for the month are $2,000 and your total sales amount is $10,000, here’s how you determine your overhead rate:

($2,000 ÷ $10,000) x 100 = 20% overhead rate

When calculating your snow removal pricing, you would multiply your overhead rate percentage to the direct cost of labor and materials for a specific job:

(Labor + materials) x overhead percentage = overhead cost

5. Consider elements that may affect your pricing

Don’t forget to take into consideration all the different factors that can impact the job. Taking key elements into account will help you set snow removal prices that are both profitable for you and fair for your customers.

You can charge more for your snow plowing services depending on:

• Type of service. Will you be hauling snow off the property, pushing snow with a plow, or blowing snow with a snow blower?
• Typical snowfall patterns for your region. Is your service area prone to heavier amounts of snowfall?
• Competitor pricing. What do other snow removal companies in your region charge for the same service? What pricing model do they use?
• Type of property. Are you pricing snow removal for a residential or commercial property?
• Size of property. How big is the property and how long will it take you to complete the job?
• Accessibility. Is the area accessible with a plow? Is it steep, curvy, or hard to navigate? Will you have to hand shovel?
• Equipment required. Does it require more snow removal equipment, like a snow blower, to complete the service?
• Response time. How soon after a snow event do you want to guarantee service? Will you offer emergency snow removal services?
• Additional services that may be required. Does your client require any additional services that will take more time and materials (e.g., salting or de-icing)?

READ MORE: How to run a successful snow removal business

6. Apply your markup

Your markup is the additional amount you charge after covering your costs so you can turn a profit from your services. The percentage of revenue that you take home after applying markup is your profit margin.

Here’s how markup should factor into your snow removal pricing:

Labor + materials + overhead + markup = total price for the job

Let’s say your overhead, labor, and material costs add up to $1,400, and your ideal profit margin is 30%. That means the cost of your job should make up 70% of the total price.

To calculate your total price, use this snow removal pricing formula:

Total price = Cost ÷ (1 – profit margin)

So, the total price you should charge to achieve a 30% profit margin will be:

Total price = $1,400 ÷ (1 – 0.30) = $1,400 ÷ 0.70 = $2,000

You’ll need to charge $2,000 to reach a 30% profit margin. That means you’ll charge a markup of $600 on top of your cost of $1,400.

FREE TOOL: Calculate your profit margin in seconds with our free profit margin calculator

How much to charge for residential snow removal

Whether you are working with homeowners’ associations (HOA) or with property owners directly, you should know how much to charge for residential snow removal.

Here are the average prices snow removal contractors use for residential snow management services.

How much to charge for driveway snow removal

It’s best to charge driveway snow removal jobs by the visit. You can expect to charge between $30 and $100+ per visit.

These factors may affect how much to charge for driveway snow removal:

• Condition of driveway 
• Length
• Slope
• Material (concrete, asphalt, dirt, or gravel)

Snow removal companies may also be asked to clear walkways and sidewalks during the same visit. For accurate pricing, take the square foot measurements of these additional areas into consideration when quoting your services.

How much to charge for sidewalk snow removal

Some homeowners will request sidewalk or walkway snow removal in addition to their driveway, which you need to account for in your snow removal pricing formula. 

For these areas, you’ll likely need to use a snow blower or a shovel. You can charge the same amount as other snow removal services—between $25 and $75 an hour.

If your hourly rate is $40 and the sidewalk takes you 15 minutes to clear, you can charge an extra $10 in labor costs for the add-on service.

How much to charge for roof snow removal

Clearing snow from roofs is much more dangerous than ground work and requires specialized equipment. 

For roof snow removal, you can charge between $200 and $3,000, depending on how much snow has accumulated, the equipment required, and the size and slope of the roof.

How much to charge for commercial snow removal

Pricing snow removal for commercial properties should be approached differently than residential properties. Commercial lot sizes are much larger and require heavier equipment and more supplies.

They also typically demand a quicker response time and more frequent service compared to residential properties.

How to price commercial snow removal

To get your base commercial snow plowing rate, use this formula:

(Hourly rate ÷ 60 minutes) x (# of minutes you will spend on the property) – (any offered discounts) + (applicable state taxes)

Keep in mind other factors that you’ll want to include in your commercial snow removal contract pricing, such as:

• The number of labor hours required (when more manpower is needed, multiple your hourly rate by the number of technicians required)
• Extra equipment or materials needed, like salt or sand
• Duration of time the service will take to complete
• Square footage of the plowing area

How to bid snow removal contracts

Property managers and businesses looking for snow removal services will sometimes invite snow removal companies to bid on contract. 

This process requires your business to submit a formal quote or proposal outlining how you will fulfill the contract requirements and to compete with other similar businesses.

There are typically three steps in bidding for snow removal contracts:

1. Conduct a walkthrough to see the size and layout of the property
2. Create and submit your quote to the customer
3. Await the decision after the customer’s assessment of all bids

Using quote software such as Jobber makes it easy to create and send professional quotes, complete with your company branding.

Jobber helps you set the right price for every snow removal contract with quote markups. Simply view the estimated margins on your quotes, and quickly modify your pricing in response.

Plus, you can even upsell services such as shoveling and salting by adding them as optional line items directly in the quote. Your customer can select these services as they please and watch the total tally up before they approve the final quote.

Pro-Tip: It’s not uncommon for large commercial customers to want a multi-year contract. Be sure to add this as an option in your quotes.

Finally, before you and your customer agree on the final quote, be sure that you both agree to your terms and conditions, which you can add directly to your quote. Your terms and conditions should answer any lingering questions, including:

• Will each snow event require multiple visits? Or just one at the end of the event?
• What constitutes a snow event? (# of inches)
• What are your timeline guarantees? (24–48 hrs)
• Are there any limits to the number of snow events included under the contract?
• What duration of the snow season is covered under the contract?
• What is the cost for additional plowing services if needed?

With Jobber, to let you know that your quote was the lucky winner, all your customer has to do is approve the quote online. Then you’re ready to get to work!

READ MORE: How to bid snow removal jobs and win more work