Last week we got hit with a huge snowstorm. I’m talking almost a foot of snow over the span of 48 hours.
It got me thinking about what the nitty gritty of a snow removal business actually looks like. Is it really that profitable?
After a bunch of research I was able to get a local business owner to show me what his route looks like per storm. His equipment consists of a truck with a plow in front, and a salt spreader in back.
It’s a simple set up, and you can put a plow just about on any vehicle with four wheel drive. In this business, no one cares how fancy your truck is because the work is mostly done early in the morning or at non peak times.
After just 5 minutes of looking around I found this truck for sale for under $10,000. The local classifieds are easily going to be the best place to find equipment.
The Typical Route
The real value is in building a route that is profitable and doable per storm. Minimizing driving time and striking while the iron is hot is key.
This local business owner has done a great job of getting in with one landlord and taking care of all of their properties. Many of them are all on the same street so he can efficiently move from one to the next.
The Bottom Line
Does it actually pencil out? Well let’s look at the numbers.
If you can get reliable equipment for $10,000, and if you can establish a route that is efficient and profitable like this one, you are likely going to be able to pay off your equipment in 3-5 storms.
It seems like a pretty tough business to get into. But if your skill set lines up and you have access to equipment and property owners, it could be a profitable little niche.
Possible Double Dipping
If you are able to get into the business and the winter and turn a decent profit, there are lots of opportunities to use the same equipment across multiple seasons.
Landscaping
Junk Removal
Moving Services
Equipment Hauling and Towing