Hi guys. Great thread, I've learnt loads reading through it.
My opinion (for what its worth as a relative newbie,) is that you do need to charge a realistic rate to make a living. When I set up on my own after working for others for a few years I did go in a bit too low, which I realise was a mistake with the benefit of hindsight.
It is important to set your stall out as you mean to go on, and build up a good reputation, not just a cheap one.
However, I based my initial prices on what I fealt I could achieve in a day. Small chipper, small tipper and basic gear meant we were nowhere near as efficiant as a slick tooled up and experienced 2 man team.
Now we are getting there, I sometimes cringe at what I used to charge. Finally though, I know I am getting it right as recent customers have shared with me other quotes from other reputable firms and we are very close.
It takes time to get your head round exactly what your ability within the day is worth. Like many other posts in this thread, its not as simple as just a day rate. Some are more competative at smaller jobs, and some at bigger jobs. Within a mile of me there is one of the largest companies in the North West. I compete on some domestic jobs, and it can vary quite a bit on the prices. He's more tooled up to do bigger jobs than I am, yet my overheads are massively lower, so I may come up cheaper on a smaller job, without intentionally undercutting.
I think the main thing is that we are all different and there will always be variations.
Just a question, the £500 - £600 for a 2 man team. Is this a company charging out 2 people with kit, or is it the boss and a groundie? This makes a difference as if it is a company charging out 2 men, then the boss has to cover the wages of 2 men and his own on top for running the business. Just curious to know.
Adam