pricing jobs

[skyhuck]

win 100% too cheap. win 20%either too expensive or maybe other issues (reputation,presentation etc)50%+ pretty good i would think. just trying to contribute. is that a problem ?

 

Not at all, genuinely interested

 

I've given this a fair bit of thought over the years. Each inquiry must have a cost, advertising, time quoting, fuel quoting, etc. So the less you win the more you need and the more you spend just getting the work in.

 

I don't know what ratio is the right one and would be interested in the figures that get to the right one and how it established.

[grumpydavesmith]

Your labour costs alone for 3 guys on avg wage onPAYE are gonna be £300 fuel £40 then all the other costs worked out into daily rate I.e truck chipper yard saws ppe consumables, insurance damages, the list is endless! Work all this out before u even star the job and ur talking about £500 for a 3 man crew. This is for proper set up! Obviously there are tons of variations just going on my experience of the 3 man crew I work in. Our minimum earn rate is £650! But some days we earn well over 1k !

[easy-lift guy]

Thanks grumpy, that explains a lot, variations included.

elg

[Old Mill Tree Care]

why do you assume i make no profit?

 

Because you started this thread. No/not enough profit, nearly the same thing.

 

If you are thinking of raising your fee then you already know you need to.

[Old Mill Tree Care]

Your labour costs alone for 3 guys on avg wage onPAYE are gonna be £300 fuel £40 then all the other costs worked out into daily rate I.e truck chipper yard saws ppe consumables, insurance damages, the list is endless! Work all this out before u even star the job and ur talking about £500 for a 3 man crew. This is for proper set up! Obviously there are tons of variations just going on my experience of the 3 man crew I work in. Our minimum earn rate is £650! But some days we earn well over 1k !

 

Agreed.

[skyhuck]

Because you started this thread. No/not enough profit, nearly the same thing.

 

If you are thinking of raising your fee then you already know you need to.

 

No he didn't.

[Old Mill Tree Care]

No he didn't.

 

Oops! :lol:

[White Noise]

I used to get 8 out of every 10 jobs I priced . Dont be that busy fool .

 

Now I get at few less jobs but they are better priced

[Perkins]

I win nearly 100% of my quotes and I'm loaded. hah har!

 

I put this down to good reputation and good sales technique, a helpful and informative approach, but then I don't work on fixed rates either.

 

On a fixed rate system, there's obviously a trade off between increasing your prices and wasted time viewing jobs that don't go ahead i.e. increased overheads. I guess this could be represented graphically and it's probably quadratic with an asymtote on the price axis. Perhaps the 60% healthy ratio is where the maximum profit lies?

 

I'd rather be flexible on rates so that I get ALL the jobs I quote. There's really no point viewing a job that doesn't happen, because all you've done is waste diesel. Have fixed rates, sure, but have a minimum rate when you need to be competitive and an increased rate for other occassions.

[Mark Bolam]

Don't forget the 'enjoyability' factor when pricing.