The unpredictability of snowfall can create a burden for business. Nobel Weather Associates provides financial tools that can effectively hedge your weather-related risk and create more certainty in your budget.

These financial tools utilize weather options and proprietary analytics to determine the appropriate trades necessary to hedge your company’s specific exposure. By transforming the impact weather has on your business, you will be able to focus your attention on the success of your company.

Snow Removal

Hedging Snow Removal Costs

Hedging your snow removal costs will allow you to cap your snow removal expenses without sacrificing service, converting your variable maintenance expenses to fixed costs. Our products work because of the knowledge we’ve implemented into the patented analysis of the clients’ property, snow contracts, tenant leases, and risk appetites, resulting in an accurate derivatives contract.

Hedging is favorable to fixed price, or seasonal, removal contracts because most fixed price snow removal contracts lead to contractors skimping on snow removal services once average snowfall levels are realized. Hedging your snow expenses allows you to cap your snow removal costs and reap the savings associated with a season of below average snowfall.

Hedging to Protect Snow Related Revenue

Ski Resort
Businesses catering to the snow sports consumer experience a direct correlation between their revenues and the amount of snowfall in a particular region. Snowmobile manufacturers, ski/snowboard retailers, and ski resorts all have a significant exposure to seasonal snowfall totals. Nobel Weather Associates can structure a hedge to help these businesses maintain budget certainty when there is less than average amounts of snowfall in their most prominent markets.