Busy Fools

[Shane]

Just about everyone I know started out charging out at cheap rates - me included.

In my first year I must have got 90%+ of all I quoted for.

 

I felt pleased with myself and got lots of experience.

As soon as I honestly worked out my costs/profits I realised what a pillock I was being.

 

I guess the new boys will always come along and some 'east-ender' customers will just go for cheapness - so what! Eventually they will realise they can charge a higher rate and they will eventually charge a sensible rate.

 

If everybody who is professional and experienced just sticks to their pricing strategy there are nowhere near enouogh newbies around to do all the work.

 

We are running the danger of talking ourselves into our own recession.

 

The economics of it dictate that we must cover our fixed costs before we can earn a penny, and then the extra variable income needs to be measured against the variable costs resulting from doing the extra work.

 

I would rather work 3 days a week for a professional rate than 5 days a week for maybe the same total profit (or maybe less depending on variable costs).

 

I hope that makes sense - nearly 40 years since I studied economics.

[Hodge]

It's the same everywhere, I price work at what I want for doing the job, If some one wants to work for that then let them. A 3 man crew, van and chipper should be no less than £500 per day. I really think a lot of people doing tree work have no idea on their running costs. I heard how much a guy round our way was charging and he must not be making much. Remember, turnover is vanity and profit is sanity.

 

 

Sent from Hodge's eye phone using the new fancy Arbtalk Mobile App:)

[Rich Rule]

Even 500 quid a day for a three man gang is far too cheap down here.

 

Regional differences amaze me.

[likeitorlumpit]

Even 500 quid a day for a three man gang is far too cheap down here.

 

Regional differences amaze me.

 

In truth Rich- I'd say £700

Theres too many xtras that you sometimes don't factor in including 'all the shite that goes into getting permission in the first place'

Every day you've got to put money aside to replace kit. Then theres tickets/ blah blah blah.

You know the score.

[TREE-SURGEON-ESSEX]

Its going to get tough for the next 3 or so years on top of the last 5 but that's how it is.

 

Desperate company's will work for wages just to keep a sinking ship floating.

 

I think what were worth and what we can get are very different, its a real shame as we are some of the best skilled and equipped company's but have no protection from rogue traders which massively devalues what we can charge.

 

Imagine if plumbers needed no gas safe or training there industry would be ruined with shoddy work just like ours is.

[Pete Hart]

We were having this very conversation in the truck on the way home tonight - I find that people who are employed ( get the magical sum of money that appears in their bank account on the last day of every single month ) tend to struggle to comprehend how we compose our pricing strategy and what it costs to run a 3 or 4 man team with nigh on a £100k's worth of kit, fixed and variable costs. Shocked replies of "HOW MUCH!!" the end result.

 

Contrary to that I often speak to people who run their own businesses or are self employed and they comment on how expensive it must be to buy machines and keep the kit going. Rarely have to justify prices. Interesting.

 

And as for people going in with silly prices - Best of bl00dy British to you, after the week we've had dismantling a monster Macrocarpa...... why oh why would you do it for peanuts.

[Essex arborist]

Having had the joy of employing builders last year I was amazed at how much they want for what they consider to be a days work, some wanted £200/250 per day per man! They hardly wear any PPE. H & S is pretty much non existent especially risk assessment or method statements. I'm clearly in the wrong game cos the builders houses I visit to price work are all huge with the usual Range Rovers & Audi's on the drive. Someone should start a thread for us arbs - pics of your family car bet they're not as fancy as builders!

 

 

Sent using Arbtalk Mobile App

[Ian Clarke]

Ok guys can you dispense some advice to a self employed person starting out

I'm in Suffolk for the regional variation. But I honestly don't know what to charge I've worked out a rate which I think is reasonable and provides me with enough. how do you work it out?

 

I'm asking because I want to be in the arb business for a long time. So im all ears if people prefer to pm please do. Thanking you in advance Ian C

[Hodge]

Even 500 quid a day for a three man gang is far too cheap down here.

 

Regional differences amaze me.

 

That's why I said it should be no less:)

 

 

Sent from Hodge's eye phone using the new fancy Arbtalk Mobile App:)

[Yorkshireman]

IAN

 

work out staff wages include costs including ppe ,any consumables , fuel, insurance, running around quoting time wasted coz you wont get the jobs not all jobs go to plan

 

when you start expect having no more than 8 months work as the phone will go quiet in november and wont ring significantly until spring

if you've got 1+1 team van and chipper £min circa £ 400 - 450 a day

 

you will need to buy what you can from what left over from turnover but only buy what you need as you need it ,store the rest of the money dont spend what you earn in the summer because you'll need that in the winter

 

thats a good starter for you

Edited February 14, 2013 by Yorkshireman