Pros and Cons of Posting Your Rates

[Verticaltrx]

I'm a general contractor (barns, fencing, and agricultural construction) and do some excavating and tractor work as well. I don't post any prices on my website for anything I do. I also don't know what my competition charges nor do I really care. I cater more towards the higher end clients and do premium quality work. Everything I do I go to the site and give the customers a free estimate. I often get people calling wanting to know my 'price per foot' for fencing. Without seeing the site, the conditions, locations of gates, corners etc, that's a very risky thing to quote. Same with machine work for hire. I do have a set price for various common barns and sheds I build, but the total price will differ from job to job based on the site work, etc. Also, I always try to bid high and come in with a lower final cost, or maybe throw in a few extras. Hope some of this helps.

 

[Lou66]

A company or person in business that can't give a price with exceptions is nothing more than a fly by night con.. looking for the easy mark.. Lou

 

[haveissues]

Unless I'm shopping for something that is impossible to price up front I skip anyone that doesn't at least give me a ballpark price. I have never once called a craigslist ad that said call for price. This isn't because I am always looking for the lowest price but I just don't want to waste my time.

 

[kevinwak]

I work night shifts, so when I have some down time at 3 am and am online shopping I don't have the option of phoning a business for pricing. Because of that a very detailed website is important to me. One without prices is discarded immediately.

Sent from my iPhone using TractorByNet

 

[Danny C]

We are now in an "Experience Economy" where its more about value than price, although price is a factor. Posting prices puts the emphisis on price and not value; makes you a commodity. Now, if you have enough business to keep you going and don't wish to grow, this is just fine. But, if you don't have enough business or wish to grow your business, then you have to not be a commodity. You need to first ask yourself the following three questions:

1. Who are my customers?
2. What do my customers value?
3. How do I deliver value through my services?

After you answer the three basic questions above, you can work on strategy with things like:

a) Post Customer reviews to your web site and to your social media sites (Angie's List, Yelp, Google Reviews, etc.). Not incorporating social and relying solely on your web site is like sticking a small sign on a building off the interstate and expecting people to walk in. Often there os too much going on for them to see/find you.
b) Get a Google+ and Facebook page for your business. Facebook because your customers use it and Google+ because they control search and index (rank) their pages higher. Post reviews, pictures, etc on them. Regularly. And don't forget to tell a story.
c) Focus on quality of service.
d) Make the process easy for the customer; not necessarily you!

There's a lot more to it than that, but I've tried to make my reply concise. Generally, I'm against posting prices as you can see.

 

[minner]

These are all good replies, it seems like the "consumer" replies are for posting prices, while the service provider is against it. I can see both sides, but want to give the customer what they want.

Danny I agree with your above comments, and do provide all of the resources you stated, but at the same time post my prices. IMO "value" includes price somewhere in the equation. My thought is to provide all the pieces to the equation in plain sight.The biggest problem is making the "on the fence" customer understand that other portion of value, rather than trying to save :2cents:.

I believe I am competitive with others in my area, however there is a "new guy in town" posting EVERYWHERE that he'll use a batwing for $75/hr at rate of 5 acres/hr and $0.75/mi delivery. I don't think ANYONE can compete with that. At those rates I may hire him:laughing: I am sure once he breaks down he'll be done but at what costs to me? This is where I have to set myself apart using the best marketing strategy possible to prove I am the better...........value........


I am just trying to make sure I am thinking correctly, and from all perspectives, all the while still guarding my ASSets.

 

[Degolyerent]

So how do you do it when someone hires you to mow 2 acres that has a lot of trees or fences or other obstructions for your base price per acre? Have you hauled your equipment to the site and change your price when you get there?

 

[minner]

So how do you do it when someone hires you to mow 2 acres that has a lot of trees or fences or other obstructions for your base price per acre? Have you hauled your equipment to the site and change your price when you get there?

Unless it's clipping wide open pasture I never quote by the acre, always by the hour. I know pretty close what kind of time I consume given the conditions. Most of my quotes over the phone, email, or texts are after a series of detailed questions about the condition of the property and obstructions. If in doubt I will do an on site quote but try to avoid it. With the detailed questions the only time I am way low is if the property owner undersells the job or is dishonest about the condition. I have walked away from one job like this.
When quoting jobs with obstructions even if it's a large barn I always quote as if there were are none, plus add to it for time lost "trimming".

 

[Degolyerent]

Well all I can say is everyone to their own system that works for them but in my experiences I find that a customer wants a solid price before the job begins. The only way for me to do that is to look at job and give a price as there are way to many variables otherwise. They know upfront the cost and can take it or leave it or I am open to negotiate if they like to 'deal'. I have a website that shows my work and have testimonials from some customers. I use Craigslist and Facebook also. A lot of my work is repeat customers and word of mouth. But again each to his own.

 

[minner]

Well all I can say is everyone to their own system that works for them but in my experiences I find that a customer wants a solid price before the job begins. The only way for me to do that is to look at job and give a price as there are way to many variables otherwise. They know upfront the cost and can take it or leave it or I am open to negotiate if they like to 'deal'. I have a website that shows my work and have testimonials from some customers. I use Craigslist and Facebook also. A lot of my work is repeat customers and word of mouth. But again each to his own.

I agree 100%. I give an exact quote before work begins. I just calculate it based on (estimated) time instead of acreage because one acre is not equal to the next. The only time I leave it open ended is if there is a job requiring a lot ground engaging work, specifically dirt and loader work. Those times I give more of a price range since you never know what you will encounter. Spreading 30yds of gravel, that’s easy. Filling in a swimming pool where travel and compaction play a role, well that’s much more difficult.