How to grow my business, how did you grow yours?

[Jonny69]

On 21/06/2018 at 17:11, jon18uk said:

ermm 10? ?

My fault on the poorly worded question, it should have read.

 

How much money would a person have to take from a business per year for it to be considered "real money"?

[Gardenscape]

I love being small. Pick and choose jobs, get a good earner in a day then you go home early and relax. Equipment is clean, well looked after with regular maintenance and probably the one that gives me most pleasure is that I pretty much always under price anyone else in the local area due to the fact my expenses and insurance premiums are so low. I also enjoy the interaction with the customer before and after the job.

[benedmonds]

16 minutes ago, Gardenscape said:

I love being small...... I pretty much always under price anyone else in the local area due to the fact my expenses and insurance premiums are so low...... I also enjoy the interaction with the customer before and after the job.

Stop under pricing and devaluing tree work... Raise your prices to the going market rate, earn more money and do less work....  it's not a hobby.

Edited July 7, 2018 by benedmonds

[Khriss]

I work with a guy who's private jobs pricing would make yr piss boil- cos its so high , but he told me if he charges less- they think he is rubbish - so its also the area yr covering ( £500 to take out a 10cm dbh cherry ) K

[AHPP]

1 hour ago, benedmonds said:

Stop under pricing and devaluing tree work... Raise your prices to the going market rate, earn more money and do less work....  it's not a hobby.

You recently posted about how many blokes and how much kit you had and how you weren't making much money...

He can price how he likes. That's the market. It's not his fault if you've got kit and staff costs to factor into every job, some of which he can do more efficiently/cheaply over three mornings with a silky and a bonfire.

[benedmonds]

11 hours ago, AHPP said:

You recently posted about how many blokes and how much kit you had and how you weren't making much money...

He can price how he likes. That's the market. It's not his fault if you've got kit and staff costs to factor into every job, some of which he can do more efficiently/cheaply over three mornings with a silky and a bonfire.

Obviously he can price how he likes.. But we all do better if we all priced higher..

 

The market is set by what people are willing to pay for tree work. If you are always the cheapest it goes to reason many people are willing to pay more.. Why would want to work for less.? 

 

A big issue imo with the industry is many people (myself included at times) either do not realise the true costs to running a business or do it as a hobby or lifestyle choice and are willing to work for a low wage..

 

[Mark Wileman]

7 minutes ago, benedmonds said:

Obviously he can price how he likes.. But we all do better if we all priced higher..

 

The market is set by what people are willing to pay for tree work. If you are always the cheapest it goes to reason many people are willing to pay more.. Why would want to work for less.? 

 

A big issue imo with the industry is many people (myself included at times) either do not realise the true costs to running a business or do it as a hobby or lifestyle choice and are willing to work for a low wage..

 

I'm cheaper than everyone in my area, if I start charging the same as the guys with £200k + of equipment then I won't get the work. Why get me in with my 4inch chipper and some ropes when they can have the 3-4 man crew in with the MEWP, 12ich chipper and Mog?

 

Like has previously been said, it's not about under valuing the industry, it's about having a business plan that is lower cost to run and therefore give more affordable services, for not too far off the same margins as a larger firm.

[Gardenscape]

Ben, sorry dude but I price the work to what suits my business. thanks. If I price higher, which I have done in the past on certain jobs to see how customers react, I didn't get the jobs. Most cases people just don't want to pay the price, and if us qualified and insured tree surgeons did stick together and price high then unqualified and uninsured outfits would come in a do the work instead at rock bottom prices. All customers aren't like that though, some just get one quote and are happy to go ahead straight away, but most go for the cheapest option.

 

BTW, I don't light bonfires. Pick-up truck with chip-box and Jo Beau M400.

[Rich Rule]

I like to work as little as possible for the most most I can make.  I don't want to enter a race to the bottom and I definitely won't be pricing against people like that.

 

I have knocked my guts out over the years for other people who have priced low.  I always thought that even though there were factors we weren't aware of that is was still madness to work for so little.

 

I guess I am in a fortunate position to have some well paying contract climbing companies.  That means I can price accordingly and high.  If I don't get the work the have less hassle and climb for someone else...  if I do win the work I am quids in even after paying for equipment and staff/freelancers.

 

[benedmonds]

1 hour ago, Mark Wileman said:

I'm cheaper than everyone in my area, if I start charging the same as the guys with £200k + of equipment then I won't get the work. Why get me in with my 4inch chipper and some ropes when they can have the 3-4 man crew in with the MEWP, 12ich chipper and Mog?

 

Like has previously been said, it's not about under valuing the industry, it's about having a business plan that is lower cost to run and therefore give more affordable services, for not too far off the same margins as a larger firm.

Having lots of big kit should NOT make you more expensive... 

 

Kit is there to make your life easier, quicker, (safer) and cheaper....  I would not expect 1 man with a 4 inch chipper to be on the same rate as a mog and 12 inch chipper. That is 2 different setups for 2 different types of work..

 

You could do big jobs with small kit, but you are likely to be to  expensive, then the big guys.. 

Same as you can do small jobs with big kit, but you are likely to be more expensive, then the little guys..

 

My point was that if you are always cheapest then put you could rates up and earn more for doing less....

 

Maybe devaluing the industry was inflammatory terminology..