day rates

[Mr S]

Hey Guys, so i work in and around the rural west midlands area operating a Tree Surgery gang made of myself and subcontract climbers/groundsmen etc as required. We are equipped and able to undertake all aspects of tree work - from large dismantles and reductions to hedge trimming and fruit trees. We are pretty well equipped with unimog and chipper, landrover and trailer, climbing/lowering gear, a multitude of hedge trimmers and steps, from 88's to top handles, and i would say we operate quite effectively. I don't need to charge vat, my clients range from tiny domestic jobs, business, stately homes and land owners, schools and larger organisations but i don't get involved in any big highways, railway or council tenders.  

The question is day rates -  for a team of two (1 climber, 1 areal rescue) i charge £380 and for team of three (2 climbers, 1 areal rescue) i charge £550. I fear that i may be behind the times on prices and as such keeping the industry down !! I pay my climbers between £130-150 per day. What do you reckon... is it time for a pay rise ? 

[dumper]

Yes 

[eggsarascal]

Am I reading this right, you've got a mog, chipper, yourself, and another bloke out for £380/day?

[joshuatree]

So this is why prices are so low! ?‍♂️

 

2 man team should be 500 minimum with a transit let alone a mog.

 

Put your prices up.  And price per job not necessarily by day. 

 

Someone once told me if you're not wincing yourself when you tell them the price you're too cheap. 

 

Good luck. 

 

[LeeGray]

With a mog, Land Rover, all the gear and three men surely you need to be above the vat threshold? 

[Mike Hill]

For comparison 20 years ago my Boss charged £400 minimum  per day for two men and a single load of brush away.Every extra load was £60.

 

Three men,mog and chipper should be £800 minimum. 

 

If you can't get that,you should do something else because you are a working fool for the prices you published.I know that sounds harsh and rude but if you took your books to a business analyst I guarantee  he would say the same.

[Tom D]

Jeeeeeeesus thats cheap!

 

So if you pay two staff 150 that leaves £80 for you, fuel, repairs and maintenance on a mog and all your kit, replacement ropes , ppe, insurance and everything else.  

 

I can only conclude that a)your wife / father is minted and this is just a hobby to you. Or

b) you have only been going a short time and will go bust the moment the mog breaks down. Or

c)you are laundering money for organised crime and don't need to make a profit.

 

You should be £800 a day for a mog and 3 men. Thats our MINIMUM for a mog and chipper and 3 men. over £1k if possible.

[MattyF]

Personally I would want a minimum of £300 a day for myself with that gear so your not far off.. ideally £400-500 if you ever want to replace the mog or keep it running would be better.

[Mr S]

thanks every one i really appreciate it - well this seems pretty decisive. The situation arose when i moved to a new area, needed to be competitive to create a client base and with low running costs of kit being paid off and a yard based at home its been able to stay low.  

 

next question then, how do you navigate valuing prices for different types of work. do you vary them or keep a flat rate regardless of wether you are trimming hedges, doing technical dismantles, or working in a woodland with no big kit. Granted i have a unimog - but its not always being utilised as a offroad 10inch beastie and i do alter my prices drastically if it gonna run all day doing a clearance job. 

 

in reply to mike hill - yes i feel like a working fool at the moment !! and Tom D a, no im definatly not feeling minted although b, after 19 years in the industry everything is paid off and my running costs are low but c, at the time of posting this issue i am also looking at much easier way of magicking money !

[benedmonds]

It can be difficult raising rates but you need to every year.. One of the reasons general rates for tree surgery is so low in my opinion is that oldtimers (myself included) don't regularly raise their rates.   I need a minimum £550+ VAT for 2 men and small chipper and £660+ VAT for 3 men.  Mog and 10 inch chipper should be significantly more. 

 

You will lose regulars when you ramp up prices. But is it really worth working for nothing..