Rising cost

[wiley_p]

I now pay 2.46 a gallon for diesel now. That is alomost a 1.00 more than last year which means I'm spending 130.00 more a month on fuel, I,ve cut out about 800 miles a month of driving since then also. At what point do costs like this add up enough before the price of our work can go up? It seems that everyone around here is charging the same as they have been for quite some time.

 

[Matt Follett]

I bumped our "hourly rate" by $5 this spring, quoting high diesel and gasoline prices... when previous clients asked why. It scares me when we "fuel everything" in one shot, two truck chipper, and saws generally breaks $200

 

[Ax-man]

I had the same reaction yesterday when I filled up on fuel for the coming week. Seems prices jumped up almost 20 cents a gallon the last few days. I've raised our prices for work, but like you said no one seems to raise theirs, actually they are are working for less if I find out what the competition is charging. Must be some hungary people out there, to charge what they do.

What gets me though is no one is charging for estimates yet, whenever I say I'm going to charge to look at a job, for my time and gas, I get the same old answer, " never mind we will find some else " a few will bite but not many. I would think if someone is considering having some tree work performed, they should be willing to offer a few bucks to find out what it will cost.

Larry

 

[wiley_p]

I'm still doing technical bids for one company He has me work the jobs but I dont know if he thinks about the fuel, time and the fact that he still needs my experience. And the funny thing is i have to figure the job tight because the competition isnt considering these or a lot of other factors. I've watched cost of business and cost of living go up in this area for the last 6 years and there has been no increase in pay nor in what each company is billing for their services.

 

[Crofter]

Was talking to a fellow the other day that says insurance on his skidders has tripled in two years. He dumped his logging truck because he couldnt even get a quote. It is getting very difficult for small loggers here.
Seems to be going more and more into bigger hands.

 

[wiley_p]

That's one of my favorites we are required by law to have insurance but many of us are "lucky" to even get it and pay higher and higher rates each year, and this is with no incidents.

 

[Ax-man]

I once heard it said by others when I started that we should be business men or women first and arborists second. One can be a gifted climber, rigging expert, or be an expert in diagnosis of tree maladies, it isn't going to do you much good if you can't read a what a balance sheet or a profit and loss statement is telling you about your business.

Unfortunately too many of the people we compete against don't look at it this way. They get side tracked into this cut throat price war without realizing what it is costing them and then turn around and complain they are not making any money and wonder why.

Think about this little tidbit I heard from an oldtimer who did alright for himself.

Quote: " The cutting of the trees or how they get cut has nothing to do with the business itself "

I know it is kind of a dumb observation and can be interperted many different ways but if you read between the lines a little it makes sense.

Larry

 

[Nickrosis]

Get big enough to be self-insured.

The other hard alternative is to cut other costs. When it's hard to raise prices, you're left with few options. When you dig around, though, you can find a lot of ways to cut costs....as long as you're not shooting yourself in the foot, long-term.

But you can spend an extra minute weighing purchases. Or coordinate jobs a little bit better, or press people to get out the door a little faster in the morning, etc.

 

[Guy Meilleur]

Originally posted by Ax-man
What gets me though is no one is charging for estimates yet, whenever I say **I'm going to charge to look at a job**, for my time and gas, I get the same old answer, " never mind we will find some else "

Time to get a new answer, right? When you first talk to a prospective customer is the time to find out their goals and convince tham that only by having their landscape inventoried and diagnosed can they be confident of having those goals met.

Tell them about your qualifications and experience, refer them to your website, offer to give them local references they can call. If they say the just want pruning done you can ask "what kind of tree" and explain about how crown cleaning thinning raising or reducing are done differently for every tree. If they just want dead tree removal done tell them that only by managing their trees can they avoid needless losses.

Tell them about common disease pest or other problems with those trees in your area, and how a little PHC saves $ in the long run. If they're full of questions on the phone tell them that 3-minute phone consults are free anytime. You should be able to sell more consultation if they come to understand that your time is worth money. :angel:

 

[Scars2prove-it]

I save money on diesel since we use a storage tank and pump at the shop. It also saves time which you know equals money.

 

[teressa green]

82 p per litre ,times by five for a gallon ,uk is one of the most expensive places on the planet for fuel ,75% of the cost is tax to liar ,blairs goverment/dictatorship ,thank god we invaded iraq,eh ,cheap fuel just like all that cheap north sea oil we have,,,,not,