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set price vs charge per hour.

i want to change my pricing strategy.. at the moment i charge per hour, and in the winter im almost unemployed and hrs are far less. I also find i work too quick. Do u think a letter stating a customised maintenance programme with details of work done on a typical visit and a price and how many visits a year would work with recuded visits in winter periods? I was going base this on the existing price as dont want to lose clients but thefore i work all year round and not so clock watched. Some jobs i fill my van up full with leaves and then i got to get rid of the debris which is extra time i lose and dont get paid for.. Also i have lost jobs were i have been off rang up to book back in and now not wanted! family freind or something is going take over...

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  • I have had this a few times that you do work thaey watch what you do for a few visits then drop you saying a family member would do it or they found someone else think its tough times so giving a fixed price per visit can help you both out as the client can plan a year in advance. Just makesure you allow enough for extras and sundries you buy and also waste disposal as there can be items you miss. Also worth trying to state whats included and whats not. I do hedge cutting however reduction is done on a seperate quote (as it takes you longer and i don't like leaving a job half done) along with improvements such as new borders.

    Try to define what you include under your terms as maintenance and try to stick to it. As customers want to get something for nothing and it can leave you out of pocket

  • This has been covered in several threads on the forum - Use the search function to find these threads such as;

    http://www.landscapejuicenetwork.com/forum/topics/hourly-rates

    http://www.landscapejuicenetwork.com/forum/topics/current-rates-for...

    Pretty much every possible angle on this question has been covered several times over.

    To sum up IMO you are best taking on new customers on Fixed price only, steering them towards year round maintenance - usually for me I do monthly visits through winter, with some stopages in smaller gardens.

    Existing customers - Talk to them and gradually change them over, some may be reluctant - if so over time bring the hourly rate up.

  • i think i comes down to the garden and client, most people stil think ten pound an hr is the going rate.... wouldnt make a living.. lol

  • Who on earth thinks that? £10 would leave you with less than£2-£3 after running costs - seriously who? If you get customers who think that, run a mile!

    Perhaps some of your winter slack could be taken up with some leaflets for fence repairs etc? The wind does a fair amount of damage every year and it falls at the time of year when maintenance work is less intense - Fills in the gaps.

    Most import though - Have a few days off and rest (just a few days, not weeks!) get refreshed and gently ramp up for the main season, as come June when your working 8-7 lugging heavy stuff around all day and bending over... you'l wish it was snowing again!.

  •  

    Ian, most defiantly price by job. Explain via letter/email/chat or whatever to your clients.

    In my experience, charging by the hour is non-profitable. Pricing by the job allows both you and the customer to identify what EXACTLY would be getting done with no time limit. Once the job is complete and both parties are satisfied, pay time! By working efficiently, you can get more 'priced jobs' done by the hourly rated jobs, equalling more income.

    I'm sure if these customers employ you at the minute and are aware of the standard of your work they will keep you on. As long as the price increase is not to steep.

    For example, if you charged £18 per hour at the moment... cut a customers’ front and back lawns, and this process usually took you an 45 minutes (but you pottered about, cleaned up thoroughly etc. to make up the hour). Charge them £20 per visit, stating 'for grass cutting front and back lawns' increasing a £2 pay rise from said customer, although it'll take you your 45 mins, allowing more work to be booked, and also meaning more income (the main aim).

    As for the waste removal, get yourself a 'waste carriers licence’ and charge the customer to remove any waste. Why should you pay to dispose of this?! I do this process with my customers (where the green compost bins are not provided) and they are more than happy to pay extra for the waste removal. You get nothing for free in this world!

    Give it some thought bud!

  • i still view some jobs and get 'the last gardener charged ten pound an hr' lark...infact she told me he turned up on a push bike i just laughed.. had today off the rest of week am working. 

  •  

    I'd be interested in why the previous gardener left his position with said client?!Perhaps she wasn’t impressed with the quality of work? (at £10 p/h...) or maybe he could (and probably would) make more money working in a supermarket.

    Assuming he had no equipment (unless towing via push bike?!), no insurance, no vehicle overheads!!! ha!

    You get what you pay for these days...

    These days I always put in a very competitive price and if the customer doesn’t like it. Tuff! go elsewhere, pay peanuts and expect the jobs to be 'average' to say the least.

     
    Ian Parkes said:

    i still view some jobs and get 'the last gardener charged ten pound an hr' lark...infact she told me he turned up on a push bike i just laughed.. had today off the rest of week am working. 

  • sorry i do charge for taking waste didnt make that clear, but if i fill half a van load in one job i havnt structured that into the invoice, which i will have make clients aware of, supose its only during the leaf clearing season though mainly, but then again if i had a set price it would cover this...   

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