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On The Level - Budget Reduction Strategies

Budget Reduction Strategies for Snow & Ice Businesses

This year has brought with it many changes, and you may be facing smaller client budgets for snow and ice removal services than in the past. We explore the budget reduction strategies you can use to help your business succeed this winter.

John Janes | Landscaping Marketing Manager

This year has been a whirlwind of changes, and you may be facing tighter client budgets for snow and ice management this winter as a result. While tighter budgets do make things a bit more challenging, there are budget reduction strategies you can use with the services, equipment, and tools you have to make the most of your client relationships and budgets.

Prepare for Business Budget Discussions

The last thing you want to do going into this winter season is to not be prepared for possible budget discussions with your customers. Having a game plan for these talks can help you be ready with alternatives for them if they want to talk about reducing prices.

Here are some things to do before you have these discussions:

Alternative services - Take a look at what services each customer currently has, and put together an alternative snow removal package that doesn’t involve cutting prices. What offerings can you adjust to keep your budget steady but address the client’s concerns and give them value?
Decide what adjusted offerings look like – If a price adjustment is unavoidable, decide what your services would look like for each client. Would you require that they expand their services with you in exchange for these price adjustments? Having some rough idea of what you can offer at an adjusted price can help you better negotiate.
Be prepared to say no – Many customers are looking for ways to save across multiple vendors this year, and if you are already offering them the fairest price that you can for your services, be prepared to stand firm and say no to budget reductions.

As you start your budget discussions with your customers, it’s a good idea to ask them what their budget reduction looks like before you talk about what can be adjusted. Do they need to reduce services slightly or significantly? Knowing this can help you decide what service adjustments actually need to be made. You may find that they are really looking for a slight scale back and it’s something you can easily accommodate.

During your talks, it’s also a good idea to make it clear that these budget adjustments are temporary and that prices will be back to normal next winter. That way clients can know what to expect from you in the long-term.

Help Your Snow & Ice Business Get Ahead

Get more tips and tricks to keep your snow and ice business running smoothly.

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Improve Snow Removal Efficiency

If you and a customer do agree on a budget reduction, it’s even more important to be as efficient as you can on the job site, and that’s where your machines and attachments can help. Many compact wheel loaders, for example, have power train modes designed for snow clearing which reduce the torque sent to the wheels and prevent them from spinning on ice. These power train modes can also allow you to use regular construction tires without the addition of tire chains.

And don’t forget attachments – things like V plows, snow plows and pushes, and snow blowers can all help you remove snow and ice more quickly than using just salt alone so that you can maximize your time on the job site.

Budget discussions don’t have to be a scary thing – if you come prepared and have a plan for both during and after your talk, you’ll be well-equipped to handle the snow removal season this winter. Want more helpful industry tips for your snow and ice management business? Check out the SIMA Snow Talk podcast for insights from fellow professionals.

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John Janes

Landscaping Marketing Manager

John Janes has been bringing his diversified expertise to sales and marketing initiatives at Caterpillar for more than a decade. Not only does he hold an LIC certification from the National Association of Landscape Professionals (NALP), CSP and ASM certifications from the Snow & Ice Management Association (SIMA), but Janes also serves as an American Concrete Institute (ACI)-certified concrete flatwork technician.

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