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Hi Aiden
Welcome to LJN. You've come to the right place to get your new business started.
There's a lot of info on this subject on LJN but it might be worth asking the question in the Key Business Objectives group (it's only available to members)
http://www.landscapejuicenetwork.com/group/keyobjectivesprivategroup?
Good luck
Phil
thanks phil :)
Phil Voice said:
Dimitri,
You really are a conundrum.
You are obviously switched on and an intelligent bloke, your advice here is pretty sound, although I would never charge an hourly rate on any job personally. But then the figures you quoted the other day just didn't add up.
Were you just trying to put a cat (more like a lion) among the pigeons? ;-)
thanks for the replys paul and dimitri :)
I'd be careful Asking the client what they would like to pay! You could loose alot of clients that way by getting them (naturally) low-balling their figures for negotiating and leaving you feeling arqward and them feeling ripped off. - Bad business.
Give them a quote based on how much you think the job is worth and leave it at that - Let them confirm or otherwise. Over time you will build up the work.
As a rule I calculate the job on my internal hourly cost - which has every task rounded up to the nearest 15 mins. For me personally - this has worked well with good results and happy customers. It leaves them with PM if you would like a private example calculation.
Fair enough mate,
Don't think you helped yourself with some of your posts but we will leave it there.
dimitri said:
"Hi im looking to have a patio built out of natural stone flags, 25 sq metres, i would like a quote for all materials inc sub base levelling sand and mortar inc pointing and adding your labour charges, what price will that be please?
"No problem - how much are you PREPARED to pay?"
That is an interesting sales method!!
You might come back on this one Dimitri and say but you just do maintenance so its not product materials based as much as landscaping but window cleaning isn't materials based and i have never been asked how much i was prepared to pay - that is either amatuerish or more likely short term grab it and run thinking.
I quote (like im sure a large percentage do, be it fixed or hourly on what they value the job at) - once you start negotiating at all on price you lose your credibility. If they dont wish to pay your price move on to others that will. Then you might find you can have the odd Sunday off!
Do not ask a potential customer how much they are prepared to pay - it is very unprofessional and many wouldn't touch you with a barge pole! As you have been in the game for 10 years, by now you will know within a little the time a job will take and the materials that will be needed. From there you can work out your estimated costs.
Good luck with the venture Aiden, I take it you have been laid off for the winter - if not I would keep your head down for a couple of months!!
Hey Aiden, There's plenty of good people on here that'll give you great advice on this subject. Most will reccomend the pricing route, But as phil and others have said, there is a private group to discuss actual figures.
Best of luck with it all, Hope it all goes well for you mate!!
It's simple. If you charge by the hour you know where you are, and so does the client. If you're sick, on holiday, or it's three-feet-deep in snow they won't pay you. If they want you to do something extra it's simple, you charge them by the hour!
Contract pricing is different. Don't moan that your mates are making more in the summer, as you have winter income. Be prepared to argue with clients that demand more than you contracted for. Don't cut corners with contract clients when they need most work but you're being offered high-profit seasonal work.
I work 90% on contract as a one-man-band, as I prefer the steady income. It does take more work to educate the clients though....
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