Pricing risk vs time

[Djvicke1]

I found myself involved in a discussion about pricing (dangerous ground I know).

 

The example was getting a large tree on the deck with a small drop zone, many surrounding targets and little room for error.

 

If you turned up on the day, felled it in one and walked away in under an hour would you charge roughly the same as a dismantle? If so how do you explain the price to the customer when they argue about how long it took?

[Mark Bolam]

Never tell the customer how long it will take.

Golden rule.

[Djvicke1]

Yep I learnt that lesson the hard way early on but occasionally still find myself backed into a corner. Need to stop telling them how the job will be done too!

[Matthew Storrs]

But what do you say when the customer asks how long it will take, they may just want to know how long you are going to be there for as they may have plans or something, and in any case if you charge £450 for a dismantle and then drop it and be gone in an hour they are going to think they have been ripped off anyway. Personally I'm pretty up straight with my customers with regards timings but only if they ask:thumbup1:

[Marc]

I think I am doing this wrong I charge per time and men needed doesn't matter if it's a crane fell or a hedge cut cost is cost my overheads are the same, and if that big chipper is not being used it still needs to be paid for.

 

Obviously bigger jobs or those with a bit more involvement will get an over estimation to cover myself, if it all goes as planned it's a bonus, if it takes longer I am still covered and earning a profit.

[Mark Bolam]

But what do you say when the customer asks how long it will take, they may just want to know how long you are going to be there for as they may have plans or something, and in any case if you charge £450 for a dismantle and then drop it and be gone in an hour they are going to think they have been ripped off anyway. Personally I'm pretty up straight with my customers with regards timings but only if they ask:thumbup1:

 

Don't get me wrong Matt, I try and be straight with them.

It's just I haven't normally got a clue how long it will take myself!

[Djvicke1]

That's exactly how I get cornered they ask how long and I try to be pretty vague (day or day and a half etc). It gets awkward when they question your hourly rate as felling a large dangerous tree in one hour works out at a pretty good rate but that isn't a consistent hourly rate of course.

[Matthew Storrs]

I think I am doing this wrong I charge per time and men needed doesn't matter if it's a crane fell or a hedge cut cost is cost my overheads are the same, and if that big chipper is not being used it still needs to be paid for.

 

Obviously bigger jobs or those with a bit more involvement will get an over estimation to cover myself, if it all goes as planned it's a bonus, if it takes longer I am still covered and earning a profit.

 

Different ways of looking at it I suppose. I don't charge for big kit unless it's being used and when I do I just add it to my base rate. That way it makes me more competetive on smaller jobs and if I haven't got enough days using the machine to pay for it then I probably shouldn't have it in the first place. All running costs are part of my base rate though.

[stihlmadasever]

In my opinion you should be able to advise the client as to the proposed work when you see the tree,if its too tight for a fell then top it then fell it or if its a straight fell.Either way it would be priced accordingly.

If asked by clients how long it will take i will try to give them a rough time but i always give myself extra room for encountering problems.

Edited September 23, 2016 by stihlmadasever

[difflock]

That would be like pricing for a Ford Edge, and being supplied a Fiesta, at the Ford Edge price, you have priced for one task, and executed another, therefore the price should be different, especially if a deal of sucking teeth and underbreath muttering were any part of your protracted price calculation, for such a complex task.

Which you then choose to do the easy way.

To me it is clear that one should keep the customer informed, & explain;

(i) Plan "A" is quick, cheap but risky, your household insurance or mine, for any damage arising.(And allowing for an insurance claim has to carry a price cost)

(ii)Plan "B" is slower and therefore more expensive, but much safer.

Regards

Marcus