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Replies

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  Niko Coulthurst March 27, 2010 at 10:17am

  When you are doing to sums for employing somebody, dont forget: Liability insurance, employers national insurance, cost of extra tools and maintaining them, time spent doing paperwork for them (working out hrs/holiday etc), paying holiday and sick pay, accounting fees. The list goes on!!
  
  We had somebody working for us last year who drove our beat up old truck into a brand new Jag! ouch! - there goes the no claims and still waiting to see how much its gonna cost us!
  
  We are just about to take somebody on so It is worth it for us, but we make sure we are working to the absolute maximum before we can justify employing someone.
  
  The other lesson we have learnt it not to promice anybody work over the winter. We advertise as seasonal, to finish Oct/Nov (when the leaves start to slow down).
  
  Sit down, do some sums and see if it works financially. Good luck!
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  Ian Parkes March 27, 2010 at 12:19pm

  the question is if new clients ring im not sure i could take more work on....... so this is a bad position as im not building my clients up to the maximum....
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  Ian Parkes March 27, 2010 at 1:14pm

  yes ai think im agreeing with this, ta, its also wearing me out and im not motovating my other 2 days!
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  Ian Parkes March 27, 2010 at 2:43pm

  i dont charge 12 p/h this is what i get for sub contract work, using my own tools and van, still i think its very bad . i charge more for my own clients yes
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  Ian Parkes March 27, 2010 at 3:42pm

  only other idea i have is move some my jobs to a sat and keep the sub work going.....
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  Neil Petrie BSc Landscape Mgt March 31, 2010 at 7:59am

  I think you shoulld just be confdent about it. If they need it just reel off some of your overheads. You WILL get more work. I did the price increase gradually (up £5 over 6 month period) and it was best thing I could do. It's your call and only you know your finances but really think about your sums. Try doing hourly rate formula again the way your figures sit at this present moment.
  
  
  
  Paul Williams said:

  My price increase from £12 to £14 isn't going well. First 2 people it was fine (they live in London during the week). Every body else I get a sob story & they say they can't pay that much. If I enforce this I think I will loose a heck of a lot of regulars. This is at £14 not £15!!!
  
  Paul Williams said:

  I'm getting stressed trying to fit work in. I've taken on too much & I'm too cheap (£12 basic). I'm going to tell the vast majority of my customers next week that I'm upping to £14 basic rate (I always price for lawns, spraying hedges). I'm not looking forward to it but it has to be done. Hopefully I will have some business left by the end of the week lol.
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  Andy Thorne March 31, 2010 at 10:43am

  I would just add to everyone that there is no reason at all why prices need to be increased all at once, or indeed uniformly. You can up rates of any job, whenever you need to.
  It is, admittedly more natural to increase at the start of the season or tax year but remember our costs go up at varying times.
  Try increasing a few customers each month.
  
  Ian: With regard to taking someone on as in OP I would not do it - there is no way your turnover could sustain it.
  You need to be increasing prices or gaining more higher value work - This is the way to maximise profits. Employing someone has the potential to go horribly wrong so unless you have plenty of spare funds floating around or loads of lucrative contracts I would steer well clear!
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  Ian Parkes March 31, 2010 at 4:38pm

  yea but i dont charge 12 ph at all. this is just the wage i get from the sub work im currently doing for 2 days.
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  Mark March 31, 2010 at 7:34pm

  I've just recently increased my day rate by £10 but I also explained to customers that this is my first price rise in 3 years and told them roughly how long it will be before any further price rise (2years) this way they can see
  
  A. It's a reasonable time for me to increase the price.
  
  and
  
  B. They know where they stand for the future
  
  Worked for me.....but I also noted Pro Gards advice for end of financial year to do so as with everything kicking off in the garden your services are more in demand ;-)
  
  Cheers
  Mark
  
  Paul Williams said:

  My price increase from £12 to £14 isn't going well. First 2 people it was fine (they live in London during the week). Every body else I get a sob story & they say they can't pay that much. If I enforce this I think I will loose a heck of a lot of regulars. This is at £14 not £15!!!
  
  Paul Williams said:

  I'm getting stressed trying to fit work in. I've taken on too much & I'm too cheap (£12 basic). I'm going to tell the vast majority of my customers next week that I'm upping to £14 basic rate (I always price for lawns, spraying hedges). I'm not looking forward to it but it has to be done. Hopefully I will have some business left by the end of the week lol.
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  Lawncare-4u.co.uk March 31, 2010 at 9:41pm

  i reckon you could go for £15 an hr with those shades on paul.
  
  i bet you work hard. you will kick yourself if you want to put it up another £1 when fuel/machinary car tyres ,servicing ,etc etc sneaks up.
  
  plus - its easier to add up and no change (coins) is needed.
  
  go for it ! £15 an hr after costs = £8 an hr.....with stress ! £6.50? @ morrissons !!
  
  Paul Williams said:

  True, certainly shouldn't have any problems justifying it. I can afford to loose 1 or 2 so it's ideal timing.