Introduction

Salt prices are climbing rapidly, and if you’re in the snow removal business, you’ve likely felt the strain already. Contractors are showing up at suppliers only to be shocked by steep price increases, sometimes causing panic, frustration, and confusion. The sudden jump in salt costs is not a matter of corruption or price gouging it’s simply the result of supply shortages, panic buying, and a tightening market. For snow contractors, this can quickly turn a profitable season into a financial struggle if not handled correctly.

Watch this quick breakdown of how salt pricing impacts contractors: https://youtu.be/Ry2qwEgAAD4

Why Salt Prices Are Surging

Salt is a finite resource, and when demand spikes while supply drops, prices inevitably increase. Municipalities consume salt at incredible rates during heavy winters and often restrict commercial suppliers to ensure their stockpiles last. Even if local suppliers start the season with adequate inventory, a few consecutive storms can deplete it quickly. When regional sources run low, suppliers must import salt from distant locations such as Canada or the Middle East, increasing shipping costs and passing those costs directly onto commercial customers.

The Real Problem for Contractors

The primary reason contractors get crushed every winter is that many quote fixed prices for their services or fail to include clauses in contracts to account for fluctuations in material costs. Salt is the single largest variable in snow removal work. If the price of salt rises and your rates remain fixed, your profit margins can disappear almost overnight. For example, if salt costs $100 per ton and you charge $200 to apply it, your margins may be modest but manageable. Once the price jumps to $250 per ton, your margins collapse, and in some cases, you could be losing money on every application.

How to Protect Your Business

The solution is simple but essential: adjust your pricing to account for changes in salt costs. Always include this adjustment in your contracts. If your contracts don’t currently allow it, add a clause immediately. You are under no obligation to absorb costs that are beyond your control. Similar to how gas stations adjust prices when fuel costs rise, snow contractors have the right to adjust their deicing and salt application rates to reflect current market conditions. If a client refuses to pay, it is appropriate to stop service until an agreement is reached. Even without a pre-existing clause, the situation can be handled professionally. Calling clients to explain the market change and the need to adjust rates can often lead to acceptance. Transparency and clear, factual communication go a long way in maintaining client trust while protecting your business.

Recommended Contract Clause

To safeguard yourself, include a clause such as the following: "Due to the unpredictable nature of winter weather severity and the number of seasonal snowfalls, salt and deicing materials are based on current pricing. If there is a change in the price of salt and deicing materials, adjustments to the salt and deicing application price may change." This single paragraph protects you from disputes and gives you the right to adjust pricing as material costs fluctuate. Spreading price increases across multiple clients also makes adjustments easier to manage. For instance, if salt costs rise by $150 per ton and you have ten similar-sized clients, the additional cost per client is only $15—a manageable increase that should not be a major concern. Properly managing your pricing transforms what could be a crisis into a simple adjustment.

Conclusion

The price of salt should never become a source of stress for your snow business. Pricing strategy matters more than anything else in snow work. Understanding your numbers, planning for cost changes, and including proper contract clauses ensures your profitability even when market conditions are unpredictable. Never lock yourself into fixed rates that cannot survive real-world fluctuations. By proactively managing salt pricing, you protect your business, maintain margins, and keep operations running smoothly throughout the winter season.