I don’t mean to make bad puns, but the snow plows are going through a perfect storm right now. And it is, of course, the consumer who will pay.
Prices have been rising in residential snow removal for three years: between 25% and 50%, depending on the region, as illustrated by yesterday’s report in Le Journal.
With the shortage of manpower, snow plows are snapping up good snowblower drivers or operators. This is the case of mine, which had to cede its territory to a colleague. Snow plows disappear in series. Some buy others…
What happens when the supply decreases? Capitalism 101: Prices are rising. Especially since diesel increased last winter. The increase is partly explained by that of additives, which prevent the fuel from freezing. Some snow removal companies claim to pay $1 per liter more than last year.
Fuel clause
As a result, many have added a “fuel clause” to their contracts, which will allow them to pass on any potential increase to their customers.
“If there is a significant increase or decrease in the price of fuel, snow removal companies will adjust their prices accordingly,” explains Annie Roy, general manager of the association of heavy machinery owners in Quebec.
This clause fixes the price of fuel at the market price at the signing of the contract. If the fuel goes up, your final payment could go up a few tens of dollars. On the other hand, if the diesel drops, your snowplow could offer you a discount for the following winter.
Inflation
Inflation, that cursed word, makes itself fully felt. Some players say they got through last winter without losing money on fuel because there was little snowfall in March. But it will be different this year.
Thus, it is not uncommon to see the cost of snow removal for a small yard, which was $400 last year, jump to $550, or even $700 this year.
This increase is largely monopolized by that of wages, which have gone from $20 to $33 per hour since 2019, depending on the region, including social benefits. Snow plows even go so far as to pay their employees vacations in the South to keep them… Maintenance costs have also exploded, since the price of replacement parts has increased by 30% on average in one year mechanics are scarce. Tire prices jumped 40%, as did insurance premiums, which jumped 15% to 20%.
But some snow removal companies have not raised their prices. Hence my advice: shop around.
TIPS
- Ask your neighbors for referrals. Get an estimate from at least two or three snow removal companies before choosing.
- Ask for a written contract, which contains the full contact details of the snow remover (address, email, permit number), the complete description of the services, the terms of payment, the dates of the installments, plus taxes, the start and end dates of the contract .
- Some snow removal companies require payment in one installment at the start of the season. It is advantageous if you get a discount. Otherwise, pay in installments: at the signing of the contract, in January and at the end of the season.
- Reading : https://www.opc.gouv.qc.ca/consommateur/bien-service/habitation-renovation/amenagement-exterieur/conseils/deneigeur/choix/