The business of snow removal

1/3/2024

When local meteorologists announce snow is on the way, it’s a sign for most of us to stock up on groceries and plan to stay inside. Those who make their living from the removal of that snow, however, make sure they are ready to go 24 hours before it even touches the ground. While the average citizen merely needs to know where the shovel is and if the snowblower has gas, the business and logistics of snow removal can be quite complex. In addition, unpredictable climate conditions year to year make it difficult to accurately forecast the demand for services each season. But, at the end of the day, residential and commercial property owners alike need the snow gone. To accomplish that, central Iowans have a multitude of options from small teams to large companies, from seasonal contracts to hourly rates, from 2-inch triggers to zero tolerance,  and from salt to no salt, among other options.

Small but mighty

Eric Vargas started Vargas Lawn Care Services in September 2021. He had worked in the industry for a few years before launching his own venture. His team is small but mighty, made up of just him and two other guys. He would like to add a couple more people in the future, but he believes the smaller the team, the more of a personal connection he can establish with his clients.

The equipment the team uses is “upgraded to the max,” Vargas said. 

“Since I live at home right now, I’m trying to take advantage of that,” he said. “If I’m not paying mortgage or rent, I’m saving thousands of dollars, so I might as well take advantage and put it all into the business.”

For now, Vargas Lawn Care Services primarily provides residential services. He estimated 5% of his total business comes from snow removal. 

“Since I’m small, I’m not trying to grow super-fast,” he explained. “Would you rather be big, or would you rather be profitable?”

Keeping the snow removal side of his business manageable is key to success. Vargas is based out of Urbandale and tries to keep his route near his home. He reasoned that he could work in Altoona, but the 25 minutes spent getting out there could be better used on properties close by. 

For pricing, Vargas wanted to try a seasonal contract. This would have offered his employees and his business more financial security. Due to unpredictable snowfall, customers were not latching on like he wanted them to. Instead, Vargas charges per service: 0-2 inches is $65, 2-4 inches is $70, 4-6 is $75 and so on. 

At the end of the day, Vargas Lawn Care Services does not do snow removal because it is super profitable. Instead, he does it as a service to his customers. He says it is essential to maintain the relationships he has with his mowing customers. 

“Usually 75-80% of our mowing clients transition to snow removal,” he said. “For me, snow removal is more of a responsibility. If you wake up in the morning and the snow is not clear out of your driveway, you’re mad. I want to make sure they know that we’ll take care of them.”

Responding to customer needs

Moe Ghnem started his lawn care business, now Mo’s Lawn Care & Snow Removal Services LLC, in 2017, without snow removal. He added that service because of the needs of his commercial clients.

“Some of the business contracts, they want someone to do it all,” he said. “They want lawn care and snow removal. To get a good contract, to work with good companies, you have to do both.”

Snow removal makes up 40% of Ghnem’s business on a good year; 25% on a weak year.

Many of Ghnem’s clients who need both services are medium to large companies, senior living facilities, hotels and truck stops with large parking lots. The businesses have a variety of different needs in terms of getting rid of their snow on time. Clients who open late at night do not mind being on the bottom of the list, that way they are only serviced once. Some only want services after the snow has stopped. Others have 1- and 2-inch triggers. This means they are cleared after every 1 or 2 inches of snow. These are typically clients who need 24/7 access to their parking lot, like hotels and senior living facilities.

“Those are better clients for us because they keep us busy all night long,” Ghnem explained. “It’s more pay. But the clients that want you to come when it’s done put you in relax mode.”

Ghnem’s snow removal costs vary per lot. He determines a flat rate to clear a lot per a certain number of inches. For example, he might do a lot for $400 for up to 5 inches. A couple of additional inches may be an upcharge. During a blizzard, a site that requires multiple services will be charged for each time visited.

For Ghnem, the biggest difference between lawn care and snow removal is the price of equipment. When he entered the industry, he was shocked to find out the thousands of dollars he would have to spend to purchase snow removal equipment. 

Zero tolerance: A clear path

Escape Landscaping LLC provides snow removal services for seven commercial accounts. Most of them are zero-tolerance, which includes shoveling and salting sidewalks and removing all the snow from the parking lot and salting the lot throughout snowfall. 

Their biggest client, the Lutheran Church of Hope, hires Escape Landscaping to service their campuses in West Des Moines, Waukee, Grimes and downtown. Because the church has people coming and going most of the time, they are a zero-tolerance client. The church is charged hourly for services provided by Escape. The rest of their clients are charged per service or per salt application. 

Escape Landscaping’s part-owner Carter Bothwell estimated that snow removal makes up 10% of the company’s business. 

“It’s not that big of a number, but we have all the trucks and equipment to do it,” Bothwell said. “Depends on how much it snows that year, but it’s something to supplement us through the winter.”

They also began offering another service to supplement throughout the slow months: holiday light installation. The company began installing lights in October and will take them down once it warms up after the holidays. 

Contracting the work

Earth Development offers commercial snow removal and landscaping services across the Midwest, including Des Moines and central Iowa. Contrary to many other snow removal businesses in Des Moines, Earth Development contracts out the work to local service providers. Earth Development handles the logistics and administrative work behind the services provided. 

Why use a large company like Earth Development instead of a local guy? It comes down to the resources at hand, according to Jared Demaray, a regional sales executive with Earth Development. 

“We have the ability to pivot and work with our network,” he said.

Say the service provider who normally clears a lot for a company has a truck break down. Earth Development can move down its list of providers to ensure quality service is still available. 

Companies listed as clients on Earth Development’s website include The Home Depot, Mills Fleet Farm, Target and Walmart, among others. 

Demaray said there is no shortage of providers willing to do the work in Des Moines. Instead, there is a dynamic between what Demaray considers A, B and C tiers. A-tier providers are typically of the highest quality, but also the highest cost. B-tiers are middle-of-the-road and middle-income. And C-tiers can provide the same quality but have a harder time responding promptly. 

Getting to work for Earth Development as an A-tier provider requires evidence of industry best practices. Demaray pointed to the Snow & Ice Management Association as the current industry standard. The group came together to create guidance for snow businesses.

“Just go downtown and just look and watch… there’ll be 13 plow trucks in a five-mile box, and the difference of how they remove snow and where they put the snow is wild,” said Demaray.

“Companies that like to work with ours, they work in rhythm. They execute work. They do good work. They report,” Demaray explained. “We’re able to, real-time, see if somebody’s there. Or, when they get done with work, we’re able to look at pictures and see the completion of the work done.”

The other providers often went into the business to be an entrepreneur — to work for themselves, according to Demaray. Those are the ones he said are frustrated with supervision.

As a sales executive, Demaray’s work is typically the counter-opposite of the weather. He sees most snow removal agreements made in the summer months. In December, he places a palm tree on his desk to mark the return of lawn care preparation.

Demaray estimated 65% of Earth Development’s business comes from snow removal. He said the company started with snow and evolved to meet customer needs in lawn care. 

Anyone can pick up a shovel and call themselves a snow removal professional. However, success in the industry depends on organizational and administrative capabilities, the ability to service client needs, and maintaining positive client relationships. Whether or not it becomes a substantial or worthwhile part of a business depends on the equipment available and other income that can sustain the business when, much like this year, there is no snow to remove. ♦