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Benarb

Business expansion.

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On 03/03/2021 at 22:59, Clutchy said:

The first question has to be, are you consistently averaging a very profitable daily figure for your current gang/set up. If you're averaging say £1k + VAT per day, can you increase that to £1.5k + VAT by losing more quotes and winning fewer but much more profitable jobs?

 

If the answer is 100% no, we simply cannot make more a day than what we currently do then I suppose the choice is, stress or more money! 

 

I thought £1.5k a day was the max, this year is to try and consistently hit £2k + VAT per day for a 3/4 man gang and then and only then will we consider expanding to another gang.

 

That extra £3-400 profit a day can go directly into your pocket, having another gang is unlikely to be as directly profitable without being a lot more effort/time consuming. 

 

Honestly this business/industry really doesn't feel like something that will ever make you very well off without being Gristwood and Toms size! We treat our tree company as a good way to generate profit say 10-15k a month which we then set aside for other ventures.

 

The stress to financial reward ratio in tree work really doesn't feel worth it IMO.

If you're averaging 1.5k plus VAT a day i'm assuming that the majority of those days you're trying to cram several jobs in a day and not just pricing a days work at 1.5 plus vat on a 1 day job?

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7 minutes ago, Benarb said:

If you're averaging 1.5k plus VAT a day i'm assuming that the majority of those days you're trying to cram several jobs in a day and not just pricing a days work at 1.5 plus vat on a 1 day job?

We never price work as a day rate, only by tree with the knowledge that ultimately we need to average 1.5k a day

 

Most of these jobs will last a few days at least but sometimes if something is only going to take us till 11am we might have 900 on it and then go to a second smaller job for 4-600 

 

Pricing per tree was a massive turning point for us, because risk and ease is a massive determining factor in our price per tree not just time. We have a £420 minimum aswell. Which helps filter customers out on the phone. 

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