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Pricing - too high?


Mark Bolam
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Yep, much better explained now.

 

Perhaps in the future you could post a little more like this instead of the agressive manner you have previously. It does read a little better and wont get folks backs up as much:thumbup::thumbup:

 

Wasnt my intention to be aggressive just to lazy to type long messages:thumbup:

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Mark, I know someone already mentioned it, but it is a very quiet time of year.

 

Also at present just think of how the customer is seeing things. There has just been the VAT increase, fuel costs are rocketing, both knocking on to household bills going up, even groceries.

 

People are having doom and gloom rammed down their throats at the moment and I think there is more uncertainty now than there was months ago.

 

All these things considered, lets just hope this is as bad as it gets and things will start to improve in a few months.

 

Just stick with the prices for now if you can.

 

All factors which come into it mate. I'm not going to panic on the loss of a few jobs. You know what it's like, some of them may never get done anyway

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A few thoughts:

I need to get a certain amount of money in each day just to pay the overheads of insurance, advertsing, vehicle depreciation, loler certs running out etc.

 

I do not let this force me into working for stupid money. If we all did this the day rate for tree work would tumble.

 

there will be jobs we don't get bcause someone else is desperate and the customer just goes for the cheapest.

 

Some 'jobs' are just cases where someone is wondering what it might cost... so they get a couple of quotes but don't get it done by anyone.

 

In any year there will be a few days when the weather prevents you from working and there may be some days when there in just no work.

 

Average these out and accept that you may work say 4.5 days a week.

That gives yo about 48x4.5 earning days.

 

Apply realistic costs then add greed factor, subtract anxiety factor (desperate for work, local competition, sleepless nights etc) to get your day rate. Have the bottle to stick to it.

 

And finally ...Haggling customers -

If they try haggling and you reduce your price, you are admitting you were trying it on.

If they haggle at quote stage - what will they do when you give them the invoice.

If theres little work on and they say 'do it for £xx and its yours'

only you can decide.

Personally I always walk away from them - I'm lucky I've got loads of 'good' customers happy to pay a fair price for a good days work.

 

Have faith in yourselves!

From what I've read on this forum a customer should be happy with the attitude and work from anyone here.

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Mark, its still early in the year and people are still counting the credit card bills from christmas so money is tight. Also people are worrying about how the vat rise will effect them as its new and they haven't seen what effects it has on everyday spending over a month or two.

 

I don't drop my price unless they then state they want to keep everything as i think this does more bad than good becuase 1) word spreads that they can screw you down a bit 2) they feel like they were taken for a ride at the start.

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Ok

You could drop your prices short term and still feel like you've made enough profit but

What about when the machinery needs replacing/ servicing/ insurances need renewing.

It would only be a short term thing and then with the rider that the work was undertaken before end Feb.

Still think £400 per day + VAT is about right- anything more is a bonus and can be achieved especially when you are busy and pricing high.

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I had bt digging my road up and knock my phone line out for 6 days this last week no calls at all.

 

Dident even tell me a customer rang my mobile and told me :thumbdown:

 

Get on to bt for compensation, as you have lost business from it. I know a tree surgeon who had to pay compensation to a company when he took out their line. sorry for de-rail

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