How do they get away with it

[Mesterh]

The point that I was making earlier was that people go with door knockers, not for the price but because they think thats all there is..

 

Also intimidation works well unfortunately.

 

Had many an old customer well and truly robbed from door knockers.

[White Noise]

My quote was cheaper than the door knockers quote so I got the job.

 

I was expecting some 60ft connies but they turned out a massive 6ft high, must be why they insisted on showing my insurance

 

Ive done some big trees in my time . Ive only been asked for proof of insurance on a domestic job once on a small euc ? Although being L A approved all commercial insist on seeing it . So I carry a photo copy in the landy most of the time

[skyhuck]

From a business point of view, it's the company who gets the job at the highest price not the lowest that makes the money - especially in the commercial market.

 

I disagree, I think its better business if you can do the job for less than the other quotes, but make more profit, that way everyone wins

[Rupe]

Thats alway my aim! Lower price but higher profit. Its the profit that will squeeze out the competition because it allows more investment. Gross price is not relevant in business terms.

 

Not that I'm making much profit at the moment though!!

[White Noise]

I have quoted against some landscapers in the past all were well expensive ? . I find these people to be more expensive as the majority have only limited exp at this game . People sometimes say oh thats a good price . Only because theres only me and a partime groundie hence low overheads . Which means more profit to me

[Rupe]

In fact my aim is to get the job at mid price, not the lowest, and win it on service and attitude.

[Mesterh]

I disagree, I think its better business if you can do the job for less than the other quotes, but make more profit, that way everyone wins

 

I agree, but going back to the OP its very difficult to get a profit margin when you are pricing against others who through how they work have very little overheads and basically work for wages.

 

I assume its not the same across the country but there are plenty who only work for a wage and arent interested in running it like a business, I know I have spoke to enough of them on the subject! (btw I'm talking about local lads not travellers here so no one can take offense:001_smile:)

 

If I had plenty of work and didnt care about people being fleeced then I too would not care a jot what others do and do my own thing. But life aint like that and I'm not like that.

 

I dont loose sleep over it dont let it run my life or affect my health but I see no wrong in not being happy on how others do what they do.

 

No doubt life would be easier if we all just looked after ourselves and didnt car what others did or got up to. Although say that to the older generation and they wont be too happy.

[Gareth Dalzell]

I disagree, I think its better business if you can do the job for less than the other quotes, but make more profit, that way everyone wins

 

Perhaps I made assumptions which weren't obvious anywhere other than in my head - apologies. Based on all things being equal (which I know people will say they aren't, but lets not get bogged down in the detail) ie overheads costs etc etc the company that gains a contract at a higher rate will make more profit (or substitute margin here).

 

In the world of contract tendering we are all working on almost identical fixed and variable costs, once you've stripped it right down, the skill here is promoting better service/response/skill levels/results/output/standard to gain work not at the cheapest price where clearly you will be making a lesser profit, but at a better/higher price where there will be more profit.

 

I don't think there's anything too radical in this approach to business:001_smile:

[skyhuck]

work not at the cheapest price where clearly you will be making a lesser profit,

 

No.

 

I think its often possible to do a job for less and make more profit.

 

If I do a job in one day, that another firm would take two days to do I can charge 10% less than them and still make much more profit

[Gareth Dalzell]

No.

 

I think its often possible to do a job for less and make more profit.

 

If I do a job in one day, that another firm would take two days to do I can charge 10% less than them and still make much more profit

 

I agree, but that's not "all things being equal" - that would mean you have a lower labour cost as you have a lesser labour input - if you nearest competitor could do it in the same time and through customer perception of being a more professional company (or some other means) but could get the job at a slightly hirer rate then he would be making a better margin. don't get me wrong I dont think this means they are a better company its just customer perception.