Price This

[Andy Collins]

Fair point, but taking fuel for example, such a rapid escalation in costing could not be foreseen, and over the course of a year, could not be taken into account until your year end, therefore the net profit margin must be dented.

[Steve Bullman]

not if you put your rates up in line with the fuel rises

i certainly have!

[Dean Lofthouse]

Fair point, but taking fuel for example, such a rapid escalation in costing could not be foreseen, and over the course of a year, could not be taken into account until your year end, therefore the net profit margin must be dented.

 

I see what your saying Andy but as steve has pointed out, I stick the odd twenty or thirty quid on each job to make up.

 

There are of course the odd big catastrophies such as an engine blowing etc. But the longer you do the calculation the better it will be.

 

I've put two engines in my landy this year, I only accounted for one .

[Lee Winger]

I didnt say lowering rates, I said a reduced profit margin. The fact that fuel etc is going up daily will dent the net profit you can make.

 

Same thing isn't it, I agree with Steve, stick to your rates or stick at home, no way am I working on the cheap..

[RPA]

Sorry to read this one a bit late.

 

My price would have been about £1K, 1-1 1/2 days down + cleanup.

 

As far a equipment goes I dont think it should make a any diff on the price for the job. The job has a value, the level of kit = productivity i.e. how many £1K jobs you can do in a week if you have the work.

 

As far as day rates etc go mine are in general going up, prob with the exception of a bit of cash flow work like hedge cutting (where a domestic customer would prob go to B&Q to buy a hedge cutter than pay what they feel to be unreasonable prices)

[conkers]

If arb pricing is led by the customer because they just will not pay over a certain amount, and we cannot see a profit under the amount they are willing to pay then the industry has to cope by spending less money on wages and kit.

Then the only companies to survive are the ones carrying the least. I.e one sole traider with van, hired help, chipper and basic ppe.

No room to expand!

[skyhuck]

If arb pricing is led by the customer because they just will not pay over a certain amount, and we cannot see a profit under the amount they are willing to pay then the industry has to cope by spending less money on wages and kit.

Then the only companies to survive are the ones carrying the least. I.e one sole traider with van, hired help, chipper and basic ppe.

No room to expand!

 

:confused1:If you have the right kit and skill you CAN do the job for less if you HAVE TO.

 

So I would think the people who have used the last 7 or so years of boom to get geared up will be in the best position to ride out this dip, that and a GOOD reputation,IMO.

[Andy Collins]

Same thing isn't it, I agree with Steve, stick to your rates or stick at home, no way am I working on the cheap..

 

Sorry not the same thing at all, there is going to be a level where the rates can only be so high, but ever increasing costs will eat into the profit margins. Never mind, I couldnt really care how others see it.

[Steve Bullman]

well if thats the case, personally id give up...my personal living expenses are on the up and if my income doesnt rise in proportion then its utterly pointless leaving the house.....costs more to go to work than not!

[conkers]

:confused1:If you have the right kit and skill you CAN do the job for less if you HAVE TO.

 

So I would think the people who have used the last 7 or so years of boom to get geared up will be in the best position to ride out this dip, that and a GOOD reputation,IMO.

 

The right kit does not last forever, and reputation goes a long way.

A company should not be paying for things forever on credit, it should build up a reserve to pay for breakages etc.

People I speak to can't believe how expensive our day rates are- then you tell them what your kit costs and they wonder why you do it for the money.

Ask the average customer the cost of the 6"chipper new and they will say about 5k! lol.

I have my reasons for doing the job and it is nothing to do with money, but we have to live on something.