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help with pricing


Charleton Chips
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I personally would just give them a price per hour if your un sure. Obviously depends on what you are to supply eg saw and fuel or just yourself. As a self employed qualified man I don't think £18-20 per hour is out of the way if your supplying saw and fuel.

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I personally would just give them a price per hour if your un sure. Obviously depends on what you are to supply eg saw and fuel or just yourself. As a self employed qualified man I don't think £18-20 per hour is out of the way if your supplying saw and fuel.

 

The demo contractor will be on Fixed Price Lump Sum (FPLS) or might be looking for a rate for a bill of quants, either way they wont want somehing open ended like an hourly rate.

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If this is going to be his employment then I would start with the following.

 

1/ how much does he wish to earn a year ( include tax deductions )

2/ operating costs per year, equipment, fuel, repairs, vehicle purchase spread over 3 years.

3/ operating costs professional services and advertising, etc

 

Add this lot up and devide by 45 working weeks per year allowing for holidays, you can then break this down into an hourly operating rate and work out a profit margin ( 10 / 20% + ).

 

You only need to do this once a year to know your true operating cost, with out it you may price work and loose money hand over fist.

 

Obviously there are then benefits to tree work that can bring in extra cash.

 

A lot of folks are unsure if selling logs are worth the effort. Well most the the wood cut down should be used to produce logs as this extra income in lean times is most welcome, and I would rather have some cash than no cash.

 

To remain successful you need to maximise your turnover / output, and keep a strong hold of your expenditure. Don't take chances

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I would go and look at the job and work out how long you think it will take. £200 per man per day. Take your dad and give him the logs if he wants them. If you run away from the job you have earnt nothing. If you under price it you will have learnt a lesson and got your foot in the door. Next job, up the price. Find out if they need 10 million cover on your insurance as thats more cost ea year. Find out if you have to sit an induction course, more time on the job and finally if they want risk assement 1 page of A4 is fine if they want 20 pages and lots of coloured boxes thats alot more money. Good luck with it.

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