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Johny Walker

getting undercut !!!!!!

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I got this flyer through from my accountants the other day, very good advice imo. Its a real shame so many people in this business just don't get it.

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There is absolutely no way you could know the profit margins of another company. You can pressume things to make it easier on yourself for loosing out but that's just a coping mechanism .

I have undercut many a job just to do it for the thrill, the wood, the fun or just to annoy other contractors, maybe just the mood I am in.lol

I have also done jobs 5 x quicker than what someone else would take to do it. If you have good kit then you can do this.

I am not in business to be all buddy buddy with my oposition, I have bills to pay and a family to look after.:)

 

I could not have put it better myself everyone has different costs and overheads and this is what dictates most prices.

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Its all relative.

 

If what I read is true there are companies charging £900 a day for 3 men who would be gutted at someone charging £600 a day for 3 men who are equally gutted that 3 men can work all day for £300,etc etc.

 

There will ALWAYS be plenty of people willing to work for less , many of them will keep going long after others have folded because they can work for less, plus there are always more newcomers.

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There is absolutely no way you could know the profit margins of another company. You can pressume things to make it easier on yourself for loosing out but that's just a coping mechanism .

I have undercut many a job just to do it for the thrill, the wood, the fun or just to annoy other contractors, maybe just the mood I am in.lol

I have also done jobs 5 x quicker than what someone else would take to do it. If you have good kit then you can do this.

I am not in business to be all buddy buddy with my oposition, I have bills to pay and a family to look after.:)

 

Ditto:thumbup1:

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I would say it's more pride that would stop someone from lowering there price. That old attitude "I won't work for that", the fact is there is plenty of men would, and that's why people will always get undercut no matter what. Some people have ideas above there station and think that unless they can get £200 a day a man then the jobs not worth doing.

Sometimes in life you just have to accept that taking less is just the way it is it's either that or sit at home. Am not saying work for nothing am saying a little less is better than nowt.

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There is absolutely no way you could know the profit margins of another company. You can pressume things to make it easier on yourself for loosing out but that's just a coping mechanism .

I have undercut many a job just to do it for the thrill, the wood, the fun or just to annoy other contractors, maybe just the mood I am in.lol

I have also done jobs 5 x quicker than what someone else would take to do it. If you have good kit then you can do this.

I am not in business to be all buddy buddy with my oposition, I have bills to pay and a family to look after.:)

 

having the kit to do a job quickly is a good point but its hard when pricing not to pass that savin on to the customer.. we did a job a month ago near london.. took down 14 oak trees, had to remove everything from sight and grind roots out all in 2 days.. we did it in a day and charged £6000+vat and sold the oak for £2400.. i had mog and 14 ton grain trailer on back, 3 transit tippers all loaded with small chord and paid my mate to pick the butts up with his artic timber trailer and delivered them straight to my buyer.. i had our telescopic forklift delivered there and back by low loader which we moved all butts around sight with.. all wood chip stayed [luckily].. the hole job with timber and forklift haulage and wages cost me £1500 for that 1 day so i was more than happy with the profit.. i later found out that they'd had quotes from 10 to 15000 and none of them could do it in 2 days [let alone 1] some were sayin 10 days which with couple 3.5 ton trucks and 6inch chipper that'd prob be about right.. should i have charged more?prob is they wouldn't of had job done if it was much more..

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having the kit to do a job quickly is a good point but its hard when pricing not to pass that savin on to the customer..

 

I disagree.

 

I know the gear my Competition has,so when it comes to the big jobs I know roughly what its going to cost them to hire in the gear I OWN.

 

So my quote is what I estimate the competion would charge to hire in that gear plus a little bit.If I get the job great,if not,they are working for less that what I want my gear running for.

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Nice 1 Nick, they didn't pay for the tree cutting, they paid for your magic mate , to pull a job off like that takes skill and experience. :)

some jobs abuse kit, some don't . There are some jobs I take on just to give lads something to do if I want the day off, I will pop in and make a mess and leave them to tidy up, if it covers wages, happy days.

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