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John Shutler
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Is undercutting the correct term? To me under cutting is when the competitor knows how much you put on the job (asking the customer) and then putting a lower price in thus undercutting you if you mean someone is doing it cheaper then that is fair enough surely?? I have lost jobs to people who can do that job cheaper than me and I have also got jobs over people in the past for being cheaper. That's just business. I think when we are quite then it's doom and gloom but when we are busy then hey,ho. :)

 

Yes, need right terminology here :)

 

I agree with the above! :thumbup1:

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Is undercutting the correct term? To me under cutting is when the competitor knows how much you put on the job (asking the customer) and then putting a lower price in thus undercutting you if you mean someone is doing it cheaper then that is fair enough surely?? I have lost jobs to people who can do that job cheaper than me and I have also got jobs over people in the past for being cheaper. That's just business. I think when we are quite then it's doom and gloom but when we are busy then hey,ho. :)

 

 

your right mate!, I mean underpricing of course. Although one bloke round here asks the customer who's quoted and for how much and just puts a cheaper price in:thumbdown:

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your right mate!, I mean underpricing of course. Although one bloke round here asks the customer who's quoted and for how much and just puts a cheaper price in:thumbdown:

 

That's a sneaky way of doing things mate, the customer is as bad for telling them but in these tough times then they will try anything. I have lost a job over a fiver before!! :)

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indeed mate, but I've always said, if you keep things professional when talking about other firms, but customer always things more of you.

We are working in hard times, but we just keep doing the best job we can for the best price we can do it for. I take pride in every job I do, the people that employ benefit cheats and work uninsured, with no tickets etc etc can't take pride in any job then do. :001_smile:

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If the customer was smart he would be 'modifying' the quotes he has got. So the serial under cutter does the work for even less.

 

Anyway, times are tough and it's human nature to compete. People out there are struggling to eat and clothe their kids so I don't think we can blame people for being willing to put in a day's graft for £50 can we? If they have nothing else to do? At least they are not sponging off the state, hopefully. I know it's a massive bummer but it's a sign of the times.

 

I've been skint and I know what it's like. So skint I couldn't afford to eat back in the last reccession. I would take any work just to get a decent meal. I didn't have kids then either.

 

I don't really know what the answer is other than finding a balance you can live with and lowering your expectations for a year or 4. You can look to branch out (sic) into gardening and so on but then of course you are stepping on someone elses toes.....

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back to the thread.

I've been contemplating this % stuff

They call it 'conversion ratio' in the lingo.

Expressed as a % though but at least it's easy to understand.

Whats not so easy is considering the types of quotes/customers.

I can see 3 types of customer

-existing

-referred

-totally new from advertising/web etc.

 

I would expect a different conversion ratio from each and your overall % will be determined by the proportion of customers from each area.

So I would expect

- existing customers 95-100% conversion

-referred say 80-90%

- new - well it depends on how busy you are but it could be as low as 30% so don't panic- most people get 3 estimates and if you get 30% you're about on the money.

 

The key is getting existing customer base as high as possible. Look after them and they will look after you.

New customers are potential long term but will probably still shop around until they find someone they trust.:001_smile:

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back to the thread.

I've been contemplating this % stuff

They call it 'conversion ratio' in the lingo.

Expressed as a % though but at least it's easy to understand.

Whats not so easy is considering the types of quotes/customers.

I can see 3 types of customer

-existing

-referred

-totally new from advertising/web etc.

 

I would expect a different conversion ratio from each and your overall % will be determined by the proportion of customers from each area.

So I would expect

- existing customers 95-100% conversion

-referred say 80-90%

- new - well it depends on how busy you are but it could be as low as 30% so don't panic- most people get 3 estimates and if you get 30% you're about on the money.

 

The key is getting existing customer base as high as possible. Look after them and they will look after you.

New customers are potential long term but will probably still shop around until they find someone they trust.:001_smile:

 

I'm not sure this model works that well for tree work, the amount of existing customers can be fairly low compared to other trades, sure we have hedge customers and pruning/reductions come round every 3/5 years. But much of our work is removals and one off pruning works.

 

If I only got 30% of new customer quotes I think I'd be in trouble.

 

Referrals is the life blood of a tree firm IMO, if you impress your customers they will tell their friends.

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back to the thread.

I've been contemplating this % stuff

They call it 'conversion ratio' in the lingo.

Expressed as a % though but at least it's easy to understand.

Whats not so easy is considering the types of quotes/customers.

I can see 3 types of customer

-existing

-referred

-totally new from advertising/web etc.

 

I would expect a different conversion ratio from each and your overall % will be determined by the proportion of customers from each area.

So I would expect

- existing customers 95-100% conversion

-referred say 80-90%

- new - well it depends on how busy you are but it could be as low as 30% so don't panic- most people get 3 estimates and if you get 30% you're about on the money.

 

The key is getting existing customer base as high as possible. Look after them and they will look after you.

New customers are potential long term but will probably still shop around until they find someone they trust.:001_smile:

 

I have regular customers who have gone and used other firms as they are cheaper, they get me to quote and make out all nice but then get other quotes and get people to do it to save 5 or ten pound?

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