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Pricing

Hello and happy new year to everybody,

I just need a little light shed on my proposed pricing for this year.

I am sick of underpricing jobs and I don't want to be over charging. I think charging by the meter where possible is the best solution and have come up with this for are most common jobs.

75 pm first sleeper oak
40 pm second+ oak sleeper
65pm first sleeper softwood
25pm second+ softwood sleeper

First sleeper includes 3 posts (350mmdeep) or 1/2 hight with 2 bags of post fix per hole

£90 pm2 concrete cheap range slab
£95-£100 pm2 concrete top range slab
£120pm2 Indian sandstone/limestone (including easy joint)
£155-£160 pm2 porcelain including grout

I am based in the South West. 

If anyone has any input I would highly appreciate it.

I am only a small buissness and want to deliver the best job possible but when jobs are underpriced and your loosing money its very difficult to do this.

 

Thanks in advance, 

 

James 

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Replies

  • PRO

    Hi James 

    If you feel this pricing formula works for you then you have to have the conviction to apply it and be flexible with the response you receive from potential customers . 

    Its a familiar pattern with pricing , Do you back down and work for less and make a loss or stick to the maths and make a profit in order to stay in business and keep on providing a quality professional service .

    I dont feel any business needs permission to charge accordingly .

  • Like every market, there will be some cheaper and some dearer but it's about getting your price to quality ratio right and then the really difficult bit about getting the right customers.

    if you haven't long started out pricing slightly cheaper than you would like me be an option to get your name out there.

    you seem to have acknowledged that you price a little bit cheaply which is good that you can see that and want to address it. Start working for someone for next to nothing then if you decide to implement a modest price rise they aren't long about taking the hump, in short you don't need customers like that!

  • Hi James,

     

    We just run a day rate at the moment it was £100 each a day (2 of us) but know we charge £150 as that covers costs the only thing ive fount with a day rate is some people seem to think becuase its a day rate they can get us doing all different types of jobs to fulfill the day which doesnt work all the time but if we know were going to have an early finish etc then we will do more to just fulfill a day rate and keep customers happy

    • PRO

      Luke, I think your selling your self sort for £100/£150 per day and I hope that's for per man.

      Don't use day rates give an hrly, it stops people taking the piss.

      If I was you I'd use the charge out rate calculator on this site.

      • PRO

        You can give a day rate (if you like) but state the start and finish times, lunch on site etc etc.

        Personally I prefer to give a fixed price., that way if you finish earlier than anticipated then good news for you!

    • How many hours are you working for the price your giving them? Seems quite cheap Aswel , sometimes I give hourly for an odd job but lawns, hedges etc it's always a set price then can get onto the next job.

  • PRO

    I've got a paving mate, that charges £150 per metre. I've got a landscaping mate that only charges by the metre, but says he add a bit for different variable. I personally like working out material cost and time it takes to do the job using an hrly rate, and give a price.

    • Price per metre will surely depend wildly on excavation, type of base and paving laid. 

      • PRO

        I think that's why my landscaping mate add a bit per metre. He's been doing it 40 years, so I think he's got it sorted. I did ask him how much he changes per metre for Indian paving, but he only would tell me a lot, but he did say that he makes £50 per hr per man, also he and a labourer are laying two boxes of Indian sand stone a day!  

        • PRO

          Another valuable thing my mate told me was to charge twice the rate you pay your Labour.

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