Transition to self employed (wages etc)

[kevinjohnsonmbe]

58 minutes ago, Mark Bolam said:

I think you’re about spot on Ben, as is Tom’s take on things.

Pursuing the right customers is key, it took me years.

I’ve now got plenty who I don’t even price, just bill them at the end.

 

Tougher for you lads running bigger outfits, though. Much tougher.

Spot on.  Choose the job / customer.

 

Only just did a website last Nov whilst down with man flu.  Had an email from a chap 4 weeks ago for a local property.  I didn't recognise the name or the address but emailed back with some questions same day he had emailed me.  Next day, he replies apologising that the time difference (he was -8 hrs) was the delay in his response (which was next day anyway!  I've waited months for others not to bother with a reply)

 

Turns out he's in Malaysia, saw the website, wanted some work doing to a house he rents out.  Went had a look, sent him some prices, did the work, advised on some more, sent the bill, BACS transfer next day.  No quibble, no nonsense.  He's now in the book of customers to look after.  It's just a shame the book of *king idiots is so much bigger than the book of good 'uns!  

[TIMON]

How much did you want for it Ben?  I’d have been 5-600 for the trees and 150 fro the stumps. Always hard to price from a pic, but I think that would be about right.  There’s plenty guys up here who would do it for 450 too though.
 
Ive said this before on here: imagine there are 100 customers in your area thinking of having work done. Of these 15 are just wasting your time and will never actually go ahead with the job, they just want to know how much it will be. Another 20 will think it should cost less than half your quote, the next 30 will get 3+ quotes and go with the cheapest no matter how un professional they seem. The next 20 will get 3 quotes but will take your professionalism into account,  the  next 10 will only care about professionalism and not worry about price, and the last 5 will simply get one quote and accept it regardless of price.  You obviously want to be working for those who value professionalism over cost, or the one quote guys, and avoid the others. So when you loose work like this don’t feel bad, let the other guys do it safe in the knowledge that while they are working for £450 you will be making real money on another job.

Excellent post. Getting your name out there so you are doing plenty of quotes seems to be the name of the game.
That way you get more choice in the jobs you are looking at. The fewer quotes you do the more pressure there is to win the job which inevitably drives the price down. [emoji106]

[Jonny69]

4 hours ago, benedmonds said:

Including VAT Fell 2 conifer trees in rear garden to ground level (£575)

Grind stumps (£250)

Total: £742.50 including discount if all work completed

Out of interest what sort of margin do you think you have in that. After all the costs on the people, machines and vans for a day that you mentioned in the previous post. What is left for you?

[benedmonds]

8 hours ago, Jonny69 said:

Out of interest what sort of margin do you think you have in that. After all the costs on the people, machines and vans for a day that you mentioned in the previous post. What is left for you?

Using 2016's figures minus £4.50..

I do get a salary/dividends out of that, but it is not allot more then our top PAYE climber...  

Some will ask the why question bother, the obvious answer is that it takes time to build a business and you don't know unless you try. 

[richy_B]

The journey of a thousand miles starts with just one step.

[Ian C]

14 hours ago, WesD said:

 But then they won’t want their trees and hedges worked on either, knock on effect. 

Some wont but trees and hedges always grow, I set up in a recession and am doing ok. somethings will always carry on.

[benedmonds]

1 hour ago, benedmonds said:

Using 2016's figures minus £4.50....

Using 2017's figures I am minus £26.50 .. I need to put my prices up!

[Gary Prentice]

42 minutes ago, benedmonds said:

Using 2017's figures I am minus £26.50 .. I need to put my prices up!

"But you only charged £x pounds last year!" 

 

You can't win sometimes Ben. 

[Jonny69]

12 hours ago, benedmonds said:

Using 2017's figures I am minus £26.50 .. I need to put my prices up!

Without being rude, that was the point of my last post. I couldn't put that manpower and machines on site for the kind of money you were quoting. Not without coming out with £50 at the end of the year. 

 

So the next question is..................... if the theoretical third person who priced the job at £900, because he wants to earn a half decent living came on here moaning about you, pricing it at about £600 and the other bloke at £450. Which one of you has the correct price?

[benedmonds]

3 minutes ago, Jonny69 said:

So the next question is..................... if the theoretical third person who priced the job at £900, because he wants to earn a half decent living came on here moaning about you, pricing it at about £600 and the other bloke at £450. Which one of you has the correct price?

The market decides the "correct price.."  I was using the job as an example  to  illustrate why I can't pay £200 a day for a freelancer climber.... Not because I as a business owner am shafting my employees, but because in my area you would not win much work if you were charging £900 a day, because there are companies charging £450..