How are you pricing mulching jobs???

[APSmulching]

How are you all pricing jobs these days???
If I give a customer an hourly rate it will usually scare them(especially with our current economy).If I charge by the acre or square foot, then I am responsible to accurately calculate the area that I cut (which can be difficult at times). If I give a price for the job there are usually surprises or they try to add areas and larger trees to the work. Do you get a deposit up front or charge when job is completed? Which way works out the best for you??

[WestshoreConstruction]

Originally Posted by APSmulching

How are you all pricing jobs these days???
If I give a customer an hourly rate it will usually scare them(especially with our current economy).If I charge by the acre or square foot, then I am responsible to accurately calculate the area that I cut (which can be difficult at times). If I give a price for the job there are usually surprises or they try to add areas and larger trees to the work. Do you get a deposit up front or charge when job is completed? Which way works out the best for you??

Most jobs are priced per Hectare or Acre and it is some what of a learning curve, for some government stuff and some larger private jobs its calculated hourly or per acre then divided into a hourly rate based on how many acres. Some people ask for hourly rates but most jobs are per acre.

[Iron Horse]

Originally Posted by APSmulching

How are you all pricing jobs these days???
If I give a customer an hourly rate it will usually scare them(especially with our current economy).If I charge by the acre or square foot, then I am responsible to accurately calculate the area that I cut (which can be difficult at times). If I give a price for the job there are usually surprises or they try to add areas and larger trees to the work. Do you get a deposit up front or charge when job is completed? Which way works out the best for you??

It is a real problem , what you say is 100% correct .

If you quote on the job , they can and will demand that every stick etc. you missed must be picked up or they wont hand over the money .

If you give them an hourly rate , they will ask you how many hours will it take , so your actually giving them a quote .

I combine the two methods and give them an hourly rate and an approximate time frame . I point out things that will be left , thing's that will be mown around and point out the fact that their time is cheap compared to mine . If they want me to pick up every stick etc , it goes on the bill . If they want to go around after me and do a little stick picking it will save them big time . This seems to work as they are prepared . People have different expectations , some think that their scrub should look like lawn when your done and will be unhappy with the usual mulched look , they need to be prepared before hand to avoid a dispute .

I also insist that my daily charge is deposited via the Net every afternoon , that way they only can dud me for one day . Most times , you don't know these people from a bar of soap , no lending institution would give them money that easy , so why should you .

[mrob2012003]

This economy is a tough one isnt it? You asked one of the great questions of all time>>what works for one doesnt for the other. I am finding most of the customers in my area want a fixed quote(Residential and Farm) The question I had to ask myself was "What is my bottom line, what do I need to make it and still be profitable" I dont know about you guys but I cant work for free.. That seems to be what everyone wants now adays. If you know the limitations of your machines and be very up front with the customer you should be ok. Let them know it will not look like a peticured lawn. The mulched material has to go somewhere, on the ground, under the ground, piled you name it. I have had customers want a total clean up(no sticks on the ground) and I quoted them one. They didnt like the price so they went with the regular method, let it rot. I have a services contract that helps with any misconceptions that the customer may have about this type of service. Just be honest with them, answer any questions they may have, and dont over extend yourself(make promises you cant keep)

[APSmulching]

I find that if I give fixed price on a job, some customers are very happy with the finished product while others are worried about every peice of material that is larger than what they consider mulch. I always try to explain the capabilities of my equipment before hand but everyone has there own expectations. I have also done a total clean up for people but price changes minds quickly. On the other hand, if I give a per hour price people think it's expensive and will usually want you to rush the job and I end up with a job that doesn't look as good as it could. Which is never good because others see the work that you do and a great job speaks for itself. I usually give a fixed price based on how I would like to do it and if that's too high I will usually lower it with the understanding that the finish quality will not be as good or do a smaller area. In the end I want my customers to be happy and I want to make some money doing it. The economy is real tough, people are not spending money like they were. I use to get over 80% of the jobs that I quoted and now it's less than half. People are spending on the necesities, and clearing land is not one of them right now. If we can make it through these slow times things can only get better.

[Heavyduty]

Originally Posted by APSmulching

I find that if I give fixed price on a job, some customers are very happy with the finished product while others are worried about every peice of material that is larger than what they consider mulch. I always try to explain the capabilities of my equipment before hand but everyone has there own expectations. I have also done a total clean up for people but price changes minds quickly. On the other hand, if I give a per hour price people think it's expensive and will usually want you to rush the job and I end up with a job that doesn't look as good as it could. Which is never good because others see the work that you do and a great job speaks for itself. I usually give a fixed price based on how I would like to do it and if that's too high I will usually lower it with the understanding that the finish quality will not be as good or do a smaller area. In the end I want my customers to be happy and I want to make some money doing it. The economy is real tough, people are not spending money like they were. I use to get over 80% of the jobs that I quoted and now it's less than half. People are spending on the necesities, and clearing land is not one of them right now. If we can make it through these slow times things can only get better.

I'm running into the same thing. People don't have the extra cash and if they do, they hire some jackleg with no insurance.

[mrob2012003]

Originally Posted by Heavyduty

I'm running into the same thing. People don't have the extra cash and if they do, they hire some jackleg with no insurance.

AMEN HEAVY DUTY isnt that the truth.. in todays economy we all try to tell the customer what to expect but hey the real truth is we all need a Sundance Equipment, LLC - Newton, Kansas set up hmm Im such a nice guy u would think I am getting a return but im not

[AX MAN]

Originally Posted by mrob2012003

AMEN HEAVY DUTY isnt that the truth.. in todays economy we all try to tell the customer what to expect but hey the real truth is we all need a Sundance Equipment, LLC - Newton, Kansas set up hmm Im such a nice guy u would think I am getting a return but im not

Whats the price on that machine?

[yellowdogsvc]

all you can do is be honest, don't paint it all rosy, and hope that you have an honest customer. To answer your question, you need to size up the person, get some good information, and then decide whether you want to present a quote by the hour, day, job, or acre. Some people like options. Be clear but be honest. It will come back to you if you tell them that you will work with them. they need a friend not just a contractor who is hungry and needs to move on. know your bottom line, too. For me, I have an hourly price that I need when I mulch and one that I need for everything else. After you have done it long enough, you get a good handle on how long things will take. Yes, you will make a few mistakes on timing but that is good for your next bid.
Good luck.