Any business savy guys here

[Wayne County Hose]

Maybe it's time to call the competition to see how they work it. Anytime I wonder what my competition is doing, I send someone with an old hose and a few bucks.

When I was on the road fixing forklifts, customers hated seeing a travel charge on the bill. They felt like they put out money and got nothing in return. I could see their point, but you also can't go driving all over God's creation with nothing in return. So, you find creative ways to work it in the bill.

 

[Farmwithjunk]

Maybe it's time to call the competition to see how they work it. Anytime I wonder what my competition is doing, I send someone with an old hose and a few bucks.

When I was on the road fixing forklifts, customers hated seeing a travel charge on the bill. They felt like they put out money and got nothing in return. I could see their point, but you also can't go driving all over God's creation with nothing in return. So, you find creative ways to work it in the bill.

BINGO! The "hidden treasures" in the weeds go with the territory for bush hogging. It SOUNDS good to say you'll charge for every contingency, obstruction, unplanned fuel increase, traffic jam on the way to the job, extra pickle on your hamburger at lunch, ect, but unless you have a steady list of clients that just don't care how much you charge, expect most of those hidden fees to get YOUR COMPETITION all the work. Justified or not, people will always look and USUALLY find someone who'll do the same job without all the extra charges. Give them incentive to shop and they'll eventually find someone who'll do it cheaper than you. Regardless if that guy stays in business long or not, you lost a job, and there's always the NEXT "I'll do it cheaper" contractor. The less complications involved, the fewer technicalities involved in the billing, the fewer question come up. The fewer questions, the less likely you are to give the next customer an answer he doesn't wish to hear.

It's all about the perceptions of your customers. Include in your standard rates, enough of a cushion to cover contingencies. Bid with an eye on where and how you need to add to the bottom line..... and give them ONE NUMBER to swallow.

I have ONE client that we work for "per hour" with no questions asked. They've been in the property maintenance business for 35 years. They know a good price when they hear it. As of now, all the others get a fixed price agreed upon before we sign a contract. Most people cringe when they hear "extra for this" and "fuel surcharge" or any other nice name for hidden cost. It's better to give 'em a high enough price right from the start than a lower one with add-ons at the end.

 

[AlanB]

We operate on the give them a price, all inclusive, and then live with it theory.

There is no one answer, and I know squat about the food plot business, but what if you have to go back 3 times, are you going to charge a transport fee each time? (or surcharge, or whatever)

We just bid (and got) a large patio (for us) job outside of our county. The boss and Jr. Boss are working on it now. The fact that it is 45 miles from our house added considerably too the bid, as we know we will have to go out there many times, and then there is also the added hassle of getting the supplies out there on site. (we have been having absolute fits getting topsoil hauled in there)

I agree with FWJ that folks don't want to see a lot of "extra" on their bills.

Bear in mind, and I think you know, there will be plenty of jobs that you will not get. Look at those, and understand why you did not get them, and then evaluate if it is something worth chasing or not.

 

[jmfox]

You're right about the extras, but if price is important, maybe a customer would be willing to take a tour of his property to avoid the extras. Why should a customer pay for a skilled operator and a $40,000 tool to pick up a paint can full of dirt? If a guy keeps his property clean he should be rewarded.

jmf

 

[Deere Hunter]

Lab,
It may take you several jobs, but you will soon find out about how much the cost is per mile to pull to your jobs. Factor in loading times, which are minimal - I can be hitched, loaded with an implement, and on the road in 15 minutes or less if I hustle. 'Course you would have to really be moving at your age, and not talking too much to accomplish that. Plus that Urange tractor might take a little longer to get on the road than a green one. All kidding aside, you'll learn how to cost moving expense of equipment with experience, and be able to work these numbers into your quote.
Another thought is to check out Clemson Extension Service's fee estimates that they compile annually. The local guy that delivers our deer corn in nice 72 bushel grain bins works off those numbers for corn rates, delivery, and quoting anything from spreading lime to planting dove fields for his clients. He does not break out travel costs or surcharges on our bills, but rather quotes on an annual basis, and revisits his prices each year. He sends us out nice little letters with his new fees based on what he did for us last year.

Deere Hunter aka Slaya

 

[LabLuvR]

Dang bubba what you doing here???? I thought I had this jewel of a resource all to myself.

 

[Roper14]

there are quite a bit of really good observations in the previous posts, all of which are good ideas...my personal opinion, pick either approach - (by hour or by acre) if I was a landowner I would rather PAY SOMEONE by the acre because you never know - they may go in gear 2 instead of 3.... -- after you decide, don't nickel and dime the customer to death, write off any expenses -
you seem to be most worried about mileage...make sure you keep track of it (daily log) and expense the fire out of it (rates for 08 are 50.5 cents per mile - u do the math - it will add up) I do not believe that you can write the mileage off if you are compensated for it 99% sure -(double-dipping)
"most" people do not like little add ons like service call here, mileage there, i needed a part so i am going to charge YOU $45....all needs to be upfront- some of this may be elementary

used to be in the cattle business heavy--vets did it differently - some charged a service call out the wazoo - and then medicine plus and serive performed, then others had it built into the actual price of everything else...almost all the time the call plus the service was higher...used to buy ALOT of hay..never bought it by the BALE..always by the ton, you would be surprised at the numerous 1100-1200lb bales that people "think" they are "selling" when they weigh out to be only 700-800lbs - makes a BIG difference in the long run (and yes they were ok with it - just put up bigger bales)....
you need to decide what is not only best for you...but also put yourself in the customer's shoes and think what THEY would want also - better customer satisfaction -leads to more customers.
my .02

 

[LabLuvR]

I'm definately going to charge by the acre for the food plots. On other things such as bushhogging, I may do it by the hour as that seems to be customary around here.

 

[Iplayfarmer]

I don't think this has been mentioned yet...

Post a price and then give discounts for people who are closer.

There have been some great ideas about having a price per job plus time/acreage or a set price for people within XX miles radius. I'd start with something like that, and then encourage the easy or close jobs by offering them a discount appropriate to the actual savings you would realized due to where they are and what their place is like.

I think it's true that people don't want to pay more because of where you live, but the other people would love to feel like they're saving a few bucks because they were savy enough to buy a place close to the guy who owns the tractor.

 

[Deere Hunter]

Dang bubba what you doing here???? I thought I had this jewel of a resource all to myself.

You mentioned it once, and I signed up when I bought the new to me tractor. So far, I have enjoyed reading through this site, as I have time. Farms with Junk is my new tractor hero. His refurbs are flat cool!

Sorry to sidetrack fellas.