Raising rates?

[treeman82]

I need some help on raising my rates. I have been getting $1,200 per day for 3 guys, truck, chipper, chips can stay or go. I have found though that I, with 2 other guys produce a lot more than $1,200 per day in work. I feel that we produce about $1,600 worth of work per day with 3 guys, a truck, and a chipper. So my question to you guys is... how do I go about telling people that my rates are going up... yet again? From what I have heard from a couple of people... $1,200 per day is the most you are going to get for a day, 3 guys... truck... chipper. However I have definately seen evidence to the contrary.

 

[treeman82]

This is my 3rd year. If I have a set amount of work to do, I just give a flat price. However if the customer wants a bunch of stuff done, and then thinks they will want more work done on top of that... I give an hourly rate.

 

[rwilk]

for your repeat hourly/daily customers just find out the published cost of living rate and use that as an increase, or use the % of increase in fuel cost as a rate. Your regulars should understand, and for your first time customers, they don't know anybetter.

Just a thought

rwilk

 

[Greg]

Sounds like you might want to change your bid structure. First of all I would stay away from giving an hourly/daily rate. If you do mostly residential work like I do (I want that limb over the house gone, trim up that tree, remove that one, etc...) Price it by the task. The limb over the house will only take me an my ground guy 1 hr to get down, out, and clean up, but that is because we are pretty good at rigging and tech removals. I really need about $100 per hr, but I am going to charge $275 for that limb. Pay yourself for your productivity. I have only 1 customer that I work hourly for, and that is when I am by myself walking their property doing light work. When I do a remvoal for that customer I give them a job price, and when I do I get a look that tells me he is doing some math in his head that tells him he is paying much more than the $50 per her I normally charge him. I then feel compelled to start talking about the extra help I'll need, the dump costs, etc to justify my price. I am giving this guy a good price on the removal, but because he is used to the hourly thing he thinks he is getting screwed. I started my own business to get myself out of the hourly grind.
Greg