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Inflation has increased by 4.4%, in effect each pound you earned last year is now worth 95.6pence. In theory disregarding any other factors to stand still with the same volume of work you will need to increase prices by 4.4% to stay where you were.
A very large proportion of our work goes to industrial customers which are very price sensitive, larger volumes from them have helped reduce our per unit costs as we are delivering larger volumes per delivery, however we are under price pressure from our material suppliers. We have tried forward buying our steel but we can only hold prices for a month at a time. Diesel and carriage costs are beyond our control.
We did increase our non industrial product prices at the beginning of the year but will keep them under review.
I put all my regular maintenance clients up by approx 5% at the beginning of March, not a single client baulked and several even said "is that all! are you sure its enough?" and offered to pay a little more!
Ive also recently taken on several new regulars on the higher rate and the price was acceptable to all, no question.
I think if the work you do is appreciated by the client, then a small price increase each year is perfectly acceptable, even expected and goes unchallenged. Those clients that buy your services purely on price will be the twitchy ones so if they decline no biggy, move on, if they accept, bonus :-)
im undecided , impressions are no-one will accept price increases, many are reluctant last year-
but as my inflation rate is 6.8% not this 4.6 & due to insurance, fuel /oil etc quantities.
i have been quoting to get work , and have got it , id rather do a fair days work' than do nothing - i have all the costs so £90 in the pot for me is £90 !!
as long as i dont loose and get paid within a few days im happy.
despite this i need, a new tyre £110 , car service £100 odd (cheap) , tax soon , and money for winter :/
so i may have no choice but to increase £7% to stay still.......... like others i usually increase in £5's min...
again new customers - i have 2 lawns etc / -3 one offs recently are at new rates so ill see what work i get @ april 1st....
I read what for me was a very interesting book called Success in Recession by Richard Lomax, I thought it was so good, that though he sent me a free copy I insisted on paying for it and bought a copy for my brother as well. By a combination of selling to more customers, selling more goods or services to existing customers and increasing prices, small improvements in each area can make a really big difference overall.
Gardens4u.co.uk said:
in the contracting industry where we charge by the m2,it is already difficult for customers to afford new driveways,what we are having to do is stand the increase in inflation and raw materialprices,work more efficiently and reduce our cost base and advertising, but increase our marketing around new installations.
i have been known to work for peanuts for the elderly retired that buy much alcohol, newish cars and garden furniture in expensive house/ rich people yes.......
Bob Barfield said:
Not on hourly rate - on a job /lawn price of £35-£40 say that has not increased for 2 seasons.
im just managing to average my £20/ hr now after introducing it last winter/spring !
Dan Tarleton said:
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