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• PRO

  Richard Gadsby May 12, 2015 at 9:00pm

  The first thing I would do is scrap the reduced rates after 2 hours. As if you are too busy to take more work then you need to maximise the money from the hours you have.
  As far as employing someone goes you may just have to go for it and find yourself pleasantly surprised at the outcome.
  I had this problem last year and did nothing about it this year I took the plunge and so far it's been fine. You just need to get your head around it. Your customers should be fine and if they are not you either have to show them it works or move on
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    Andrew Bentley > Richard Gadsby May 16, 2015 at 7:02am

    Thank you. I've taken your advice and scrapped my reduced rate!
• PRO

  Harry@VWGS May 12, 2015 at 9:22pm

  Agree with Richard, first thing you need to do is scrap the discounted rate, no need for it, if you really don't want to take anyone on, then you really do need to maximise your hours to get the most out of your company, Try not to charge yourself out at an hourly rate, or if you do then put your rate up to a decent amount, there is nothing worse than the knowing that you can only work a certain number of hours in a day and that no matter what you do you will only earn a certain amount in that week because you charge by the hour, no motivation there for me... It's always a hard transition to make going from an hourly rate to a job rate but believe me once you've done it, you will never look back. Good luck
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    Andrew Bentley > Harry@VWGS May 16, 2015 at 7:04am

    Thank you. The reduced rate is gone and I think I will make more effort to find one off jobs without an hourly rate to improve my income - I just can't get my head around non hourly for on-going maintenance visits!
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  Paul McNulty May 12, 2015 at 10:23pm

  I've been in exactly the same position for at least ten years now, since giving up on employing staff. If you want to be a one-man operation then you're a premium service: as you say, the client gets you, not a junior who spends half the time on his phone, but they pay the same rate!
  
  Certainly scrap the discounts if you're fully-booked. One thing is to think about hourly rates if that's what you offer, as it really is a hard way to maximise profit for you, and increases the costs to the client.
  
  A couple of things I've learned. Firstly, you can increase your prices carefully. Obviously, you could double the rates and go home at lunchtime, but that would lose all your work. You need to keep on top of annual inceases to existing clients, move towards higher rates for new clients, and sometimes be ruthless about culling work that is awkward, pays less, or the client is difficult.
  
  Are you covering all your costs properly? I've often been sucked in to extras that aren't paid for, or not charged for that bit of weed killer or rubbish taken away.
  
  One thing to think about is VAT. Assuming you keep under the threshold you are automatically 20% cheaper than any larger operation in your area before you even quote for a domestic customer. You can be just as professional, with proper invoices, logo'd uniform, signwritten van, insurances and licenses etc., as the bigger companies. I'm certainly not quoting 20% cheaper than the big boys!
  
  The maintenance vs. one-offs is a whole thread on it's own. Last year I consolidated all my regulars in to 4 days per week, leaving two days for the larger jobs that I'd been turning down. I'm still not sure about this though. A garden that takes an hour a week, paying a monthly standing order all year round, is a nice steady income. The big work all comes at once: for instance the hedges all need cutting in the same couple of weeks, then don't need touching for months. More equipment, and the risk of letting regulars down trying to fit all the one-off work in during a couple of months?
  
  To sum up, I sell my one-man service as exactly that. You pay the same rate, or even less, than a larger operation, but you get the company owner personally doing the work every visit. You should be able to play on that to raise your rates a bit, but it might require letting some long-term customers go, which is tough.
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    Andrew Bentley > Paul McNulty May 16, 2015 at 7:10am

    Thank you for your comprehensive reply.

    I've got rid of my discounted rate so no new clients will get reductions. I know what you mean about the extras...other than waste removal I have included them in my rates as a selling point but now I'm not so sure that is a good thing.

    I'm drawn to one off jobs both for the money and the satisfaction. Yesterday I did 2 one off jobs and earnt twice as much as I would on a maintenance day! I also enjoyed seeing the difference I could make in a morning/afternoon compared to regular visits where I'm basically keeping the garden looking the same...

    I know a lot about fruit trees and I hope to build my one off work in this particular area but I know it takes a long time to establish your presence in a specialist subject!
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  Landscape Juice May 16, 2015 at 7:15am

  This topic is in the premium section but may well be worth the investment.

  Phasing in price increases whilst remaining in control
  http://landscapejuicenetwork.com/group/the-bog/articles/phasing-in-...
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  phil@gardenchief.co.uk May 16, 2015 at 8:48am

  I've employed for 3 years now its the best thing i ever did, we get loads more work done and employees way more than pay for themselves. If you're turning work down its the only option because there are only so many hrs you can work, one employee doubles that.
  
  Also why have a business if you don't want it to grow?
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  Keith May 16, 2015 at 10:19am

  Well at least its good news....if you are turning work away you must be doing something right! :)