Even before the first layer of snow falls, snow plows consulted by The Sun say their notebook is already full.
Depending on the targeted sector, consumers sometimes only have one option on the table. It’s impossible to shop around for your contract, when snow removal companies aren’t on the streets.
“We have already satisfied all our customers. It’s certain that we are full,” says Jean-François Bédard, president of Entretien JFB, which has been in operation since 1987.
“We thought we would have a small drop, because we didn’t have a big winter [l’an dernier]. But it’s quite the opposite,” notes the one who serves the Charlesbourg district.
In fact, Mr. Bédard realizes that snow removal has become essential for many owners. For him, the important thing is to live up to expectations to ensure their loyalty.
“People want service. There are some who are ready to sacrifice dinners at the restaurant.
— Jean-François Bédard, president of Entretien JFB
On the Lévis side, Francis Leblond, founder of Paysagiste Idée Concept which has eight drivers, must meet strong demand this year. “The eight tractors will work. I have a little space left, but not much,” says the entrepreneur, who has been in the snow removal industry since 1995.
Mr. Leblond anticipates that new clients will contact him at the last minute. He reminds us that we must not neglect the preparation work upstream.
“When you get to November 1, it has to be completed,” he says.
The latter also prefers to limit his career for five years.
To guarantee both the quality of its offer and the profitability of the company, it is better to offer its services within a smaller perimeter, believes the snow removal worker, who is approaching 60 years old.
Lowest price
Only the Essa Group among the companies surveyed by The Sun claims to be able to serve a larger pool of latecomers.
Each winter, the company, which covers the entire north shore of Quebec, prepares to increase by 6% the number of entrances to be cleared of snow in its circuit. However, current demand should only generate a jump of 4%, estimates co-owner Simon Jourdain.
The quest for the lowest price works against him, admits the one who increased his prices by 10% for the season. With the addition of taxes, his contracts are close to $600.
“What I see, when we do our submission sales, people choose 95% based on price.”
— Simon Jourdain, co-owner of the Essa Group
He wants to issue a warning.
“Snow removal is a service business. […] It is necessary that [les consommateurs] stop shopping around for a price. Let them step on the notoriety and infrastructure of an organization.”
Considering the higher salaries of its 233 operators, the hefty bill to renew its fleet and the insurance costs which have increased, Mr. Jourdain is of the opinion that it is no longer viable to offer contracts at $400, without undermining the health of a business.
“The one who is the cheapest is going to have the most entries. But he is not the one who will stay the longest,” maintains the businessman, who predicts that players will have to go out of business.
An invoice to explain…
Several snow removal companies reported being questioned about their price increases when contracts were renewed.
All indicate that the bill is not expected to drop due to the milder winter last year. Snow plows have to juggle the unpredictable, they agree.
“For companies, whether the snow is five centimeters or fifteen centimeters, it’s the same work. These are the same expenses,” Jean-François Bédard wants to clarify, who is aware that his offer is 10% more expensive than the majority of the competition.
For his part, Francis Leblond emphasizes that he has not increased his prices for the last season.
“Lucky we had a little winter.”
— Francis Leblond, owner of Paysagiste Idée Concept
During the last renewal, its customers were able to see a 3% jump on their new contract.
“I’m trying to maintain the inflation rate. Again, by maintaining this pace, you see that it is not enough. Everything costs more,” laments the snow removal contractor.
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