Content Divider

Could you be Overpaying for Snow Removal Services?

When it comes to snow removal for commercial properties, you have an important decision to make. Do you opt for a more variable per push contract or a fixed-rate seasonal contract? Both options have their advantages and disadvantages, and it’s important to carefully consider your specific needs before making a decision.

Per Push Contract

A per push contract, as the name suggests, means that you’ll be charged each time the snow removal service is performed. This type of contract is typically based on the size of your property, the amount of snowfall, and the frequency of service. One of the main advantages of a per push contract is that you only pay for the services you actually use. If you experience a mild winter with minimal snowfall, you won’t have to spend a significant amount of money on snow removal. However, on the flip side, if there is heavy snowfall and you require frequent service, the cost can quickly add up.

Seasonal Contract

On the other hand, a seasonal contract involves paying a fixed amount for snow removal services throughout the entire winter season. This type of contract provides peace of mind, as you know that your property will be cleared of snow whenever it’s needed, regardless of the frequency or amount of snowfall. Seasonal contracts are often preferred by businesses in areas with heavy snowfall, as it allows them to budget for the entire winter season without any surprises. However, if there is a mild winter with little snow, you may end up paying more than necessary for the service.

So, which option is better? The answer largely depends on your specific circumstances and preferences. Consider the following factors when making your decision:

  1. Location and Weather Conditions: If you are located in an area that experiences heavy snowfall and frequent storms, a seasonal contract may be the better option to ensure prompt and reliable snow removal. However, if you are in a region with milder winters, a per push contract might be more cost-effective.
  2. Budget: Evaluate your budget and determine how much you are willing to spend on snow removal services. If you prefer a fixed cost and can allocate a specific amount for snow removal in your budget, a seasonal contract may be the better choice. However, if you want flexibility and only want to pay for the services you use, a per push contract might suit you better.
  3. Risk Tolerance: Consider your tolerance for uncertainty and risk. A per push contract carries the risk of unexpected costs if there is heavy snowfall, while a seasonal contract provides predictable costs but may result in overpaying during a mild winter.
  4. Property Size and Usage: Assess the size of your property and how it is used. If you have a large property with high foot traffic or require frequent access, a seasonal contract may be more convenient and efficient. However, if your property is smaller and doesn’t require immediate clearance after every snowfall, a per push contract may be more suitable.

What to Do?

Ultimately, the decision between a per push contract and a seasonal contract for commercial snow removal depends on your specific needs, budget, and location. When selecting a seasonal contract, it’s often recommended that you sign a multi-year agreement where any “overpayment” can be offset by payments during the entire term of the contract. Companies with multiple locations may elect to use a combination of per push and seasonal contracts based on the factors listed above, helping to minimize risk. In the end, it’s advisable to consult with professional snow removal companies and discuss your requirements to determine the best option for your business.