Should You add Snow Removal services?
by Cam Roberts of Laser Pavement Solutions
Every Fall I hear a lot of industry chatter about the "off-season." When you offer snow removal as a service in your company, you'll quickly realize that there's no such thing as an “off-season!” As a result, I get a lot of people asking me if they should get into snow removal too.
My answer to that is a resounding... "Maybe!"
My company, Laser Pavement Solutions, has successfully built a seven-figure snow division. In this article, I will share some pros and cons to offering snow removal, tying together ideas on both sides of the argument so you can make a wise decision for your business.
PRO: It is a great way to increase your company's revenue opportunities annually. This is likely the most attractive reason why business owners would consider offering snow removal.
CON: Revenue does not always equal profit. There is a lot of expenses involved in running a snow removal operation, including specialized equipment, deicing materials, and insurance. A poorly constructed business plan can quickly wind up upside down on your income statement.
PRO: it is a great way to keep your employees employed annually. Some asphalt companies May need help with annual retention because their employees find alternate work for the winter season with different companies. Offering annual work can increase your retention numbers.
CON: If your current employees have no experience with snow removal, they will need extensive training to operate equipment safely and efficiently.
PRO: The competitive landscape for snow removal is generally declining. Companies that offered it 10 years ago may no longer offer it as the industry has changed a lot, and they prefer to operate only in the summer.
CON: A big reason why many are exiting snow removal is the exorbitant cost of insurance, the difficulties in mitigating liability, and lawsuits for slips and falls. It is not uncommon to see insurance policies for even small snow operations cost tens of thousands of dollars.
PRO: it is usually easy to differentiate a well-executed snow removal operation to customers, explaining the value that a company can bring. This value can come from experience, technology, accurate weather data, or other value-add ideas that make you stand out from the competition.
CON: From firsthand experience, I can tell you that executing a snow removal program at scale requires a steep learning curve. It is tough to service 10 different customer sites simultaneously during one snow event!
PRO: If you already offer commercial sealcoating and striping, you already have an excellent customer list to begin prospecting snow removal. If you are in these people's parking lots in the summer, you might as well be in their parking lot in the winter! A relationship-based approach can maximize revenue opportunities for every customer.
CON: There really isn't a con to this one! As a caution, however, not every sealcoating customer may be a great fit for snow removal.
PRO: There are some incredible organizations dedicated to the snow removal industry, including peer groups, training companies, and accredited organizations.
CON: While you should take advantage of these if you offer snow removal, they require a time and cost investment.
So, should you make the jump?
If I were considering starting a snow removal operation today as an addition to my current business, my first step would be to call my customers. Ask them how their snow removal has gone the past few years. Identify pain points and opportunities. This market research will give you valuable insights into the feasibility of adding snow removal to your service options.