Price Environment  - Key Takeaways

Market prices have risen due to increasing inflation, higher fuel costs for transportation, heavy machinery usage and labor shortages

Fluctuations in the market from the construction sector are occurring following changes in global interest rate policies.  However, because snow removal services are vital during high levels of snowfall, the strong seasonal demand for snow removal services helps keep overall price volatility at moderate levels


Prices in the market are forecast to rise as supply-chain shortages persist, resulting in increased costs for parts and increased labor as suppliers extend their use of old fleets due to delayed fleet production, which has driven up the cost of labor


Snow removal services have a very low total cost of ownership. The main additional cost to buyers outside of the agreed service price is coverage for events beyond the scope of the supply contract, such as unexpected and excessive amounts of snowfall or the addition of de-icing services i.e. salting


There is a moderate level of specialization in the market as these types of services requires low skillsets. However, suppliers may need to use different equipment and heavy machinery to complete tasks that require licensing. The capacity of suppliers also varies, which increases specialization

Due to the sporadic seasonal nature of events, businesses generally contract out snow removal services, therefore there is a low level of available substitutes

Accounts with significant focus on safety may be challenged to meet expectations with smaller / local suppliers, who don’t have the administrative support to drive robust safety programs with regular focus

GLS-012 - Ver 1.0 (Aug 23)

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Pre / During / Post Storm Prep     5% - 8%

  • Thorough preparation, pre / during / post storm, can make the job easier and avoid costly repairs / closures

Example:

  • Use checklist procedure to ensure safe and efficient processes in place
  • Avoid accidents, liability, site closures and maintenance bills

Snow Model Optimization  5% - 30%

  • Look for 'inclusive' models as a minimum

Example:

  • Understanding pros and cons to various pricing models
  • Collaborate with suppliers to achieve best value while securing safe snow clearing services (I.E Tiered model or per push, vs Fixed fee / per event and T / .M.)
  • Ensure clauses in the contract protect against out of scope services charges that are uncontrolled 

Innovative / Less Intrusive Alternatives  5% - 8%

  • Departure from conventional operations / equipment

Example:

  • Pre-salting treatment with brine solutioning
  • Electric portable spreaders - no connections to the truck or the control box, saves prep time, zero Co2 emissions, 50% reduction in maintenance,  new tech is able to autonomously spread - so always applies exact dosage and the right pattern

Grounds, Landscaping & Snow

Savings Levers - Snow Removal

Suppliers / Pricing

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Savings Levers

Sources: Landscaping Services - Beroe Landscaping Services 2021, Procurement IQ Procurement Research - 48646332 Landscape Maintenance, https://cleantechnica.com/2021/06/19/the-fully-electric-future-of-landscape-maintenance/, https://www.strategicgrounds.com/blog/snow-and-ice-removal/