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Prep for the snow season - build a budget.

Budgeting for snow sales can be tough, especially because snow is highly unpredictable. You actually have   no idea on how much profit you might make in a given snow season as it is all dependable on the weather. 

When budgeting for snow, you need to take a look at your numbers for the past 3-5 snow seasons.

Sales

  • Take your average snow revenue for the past 3-5 snow seasons

Field Labor

  • Look at your average payroll hours for the past 3-5 snow seasons
  • If certain employees spend a lot of time in the 'shop' in the winter, that time should go to overhead

Equipment

  • Trucks that work in the snow and summer should be split using the months calculator in LMN
  • Equipment that works in snow only should be entirely in snow budget

Materials

  • Includes, salt, sand, de-icer, or any other chargeable material

Subcontractors

  • Estimated cost of snow subcontractors (based on estimated sales)

Overhead

  • Should only include a portion of company's actual overhead
  • 33%-50% is a common method but not that accurate
  • Percentage of sales is another common method, not very accurate but may be necessary
  • Best method is to go through overhead costs with a spreadsheet and allocate a fair portion to each division
  • Snow net profits in the industry average 15%-25%

Use LMN's budgeting tool to enter in all of your sales, costs, and overhead - let the system show you what your profit will be based on your own numbers and make a profit on every estimate this snow season. 

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