lower pricing due to the economy

Ahh this is pure evidence of tech. vs entrepreneur his new client just got a deal and will expect it for the rest of the relationship, or the client will find another sucker....good luck with that
 
Exactly. I have worked hard to build the type of clientel that pays good, recognizes good work when they see it, and dont bargain, hassle, or try to work me down. When you build a buisiness out of constant begging, bargaining, etc, that is all it will ever be.

I am not saying I never, ever, ever, adjust my price, what I am saying is that I dont by any means make a habit out of it.

Derrick Hulsey
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It's all a matter of how hungry you are. If I'm booked solid for 3 weeks and the calls keep rollin in I will NOT work for anything less then my ideal rate. If I'm slow and need the money to keep my guys busy and keep making my payments then yeah I'll lower my rate to the point that I won't lose money. I may not be making as much as I want but its something coming in. As long as I'm not loosing money I would rather have 20% of something then 100% of nothing.
 
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I told him that if I went to $2,000, I might as well just write him a check for the $500 I would lose, and not bother wearing out my equipment and men.
With that being said, I almost never move on the price I originally quote. ..... I know that I hate it when people drop their prices to sell me something, it just means they weren't giving you the best deal possible from the start.
We still have a couple weeks of work in front of us, but it is definitely different than the last couple years. ....I make a lot more effort to meet them now, it closes a lot more sales on the spot. The only thing that has saved us this winter is some well-spent advertising money and our good reputation.

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Well stated and right on the money!

Gotta "get personal" and sharpen that pencil to make your bidding as lean as possible. People respect you more when you give them the best price right up front.

I think it better to lose with an honest bid. If your customers can't trust you with your bid, can they trust you with anything else you try to tell them?
 
Guys that is my point. In the winter I lower my prices and Make less, but we keep fairly busy, which is great. My point all along is that I dont bargain with people because in most cases I feel that I am giving them the most honest, fair price that I can. I try to gross between this# and this# a day for a four man crew and equipment being used. I feel that is more than fair. I am not gonna lower my prices to this# a day because that does not get me anywhere. At this# I make a fair amount, pay my guys, pay insurance, pay bills, etc, etc, etc. We are all on the same page, we just go about it different ways.

Derrick Hulsey
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I was wondering if anyone else is seeing the competition lowering their prices. I gotta tell ya, this is a real bad decision. I have been underbid by what I consider top notch companies this last few weeks. What normally is pretty stiff competition has turned into downright B*** S***. My workers comp has not shrunk, my fuel is still high, and my crew still works as hard as ever. Nothing has downgraded in our service. I got so worked up over a competetors underbid that I called him on it and he couldnt give me a good reason for bidding $1300 LESS then me! My point is dont discount what we do! especially if your a true pro. Any thoughts? remember G M may be going bankrupt, but they still are asdking full price for their trucks!

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I'm with Shovelhead! His story nearly matches mine. And unfortunately there are certain customers which I know I won't get the job because they will be more price sensitive. If I had the normal high volume of bids coming in, I wouldn't be lowering my prices.

We are in tough times as tree service business owners.
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FWIW. There is plenty of research that shows when there are tough economic times, businesses need to advertise more than the aught to, not less. Out of fear it is tempting to pull out of advertising to reduce cost. However, research shows if companies stick it out and continue to advertise, they stay in business. And, when the economic hardship is gone, guess who increases their business all the more?--The guys who toughed it out.
 
I did a job on Monday that I had gave a bid for $2500 but did the work for $1800. He had another price from a competitor that is notoriously cheap. I asked who the bid was from, but didn't ask to see the estimate. Just him mentioning the companies name I knew it was true. I ended up with another job two doors down for $1500. And two doors down from that thought I had locked up a job for $3000.00 on a big silver maple tree and stump. He was all for it but the wife squashed for now due to the bad economy. They were more than impressed with our operation and I'm sure we will be the first to be called to do the work when things seem to turn around. So in the end it was worth it to me than to let a job get away that I thought was worth $2500. Rather I did the work and have gained $3300 with the potential to be $6600 from that one job and maybe even more.
 
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or if some chinaman can build a chain saw or car better than detroit can, for less money, then detroit had better go to china to school before their houses are selling for fifty cents each instead of a dollar...

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common, dude... watch the racial slander. You are on a public forum, right?
 
Jammin is right! NOW is the time to keep up with your public relations/ advertisment...we are really excited about doing some PBS segment on tree mitigation. We have not lowered any of our budget for advertisment.
As far as the chinaman comment ...dude give me a brake! I see nothing wrong with that comment. it was more like a compliment! HUNGRY? OUT OF WORK? EAT YOUR IMPORT!....sorry MTCinc, your way off....by the way, did you know I just found out the govt.is making you sign for any ammo you purchase after mid summer this year! Wake up AMERICA!
 
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As far as the chinaman comment ...dude give me a brake! I see nothing wrong with that comment. it was more like a compliment! HUNGRY? OUT OF WORK? EAT YOUR IMPORT!....sorry MTCinc, your way off....by the way, did you know I just found out the govt.is making you sign for any ammo you purchase after mid summer this year! Wake up AMERICA!

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Look, I understand what the guy is trying to say. Just use correct terms! If you think I am way off because of the fact that the word "chinaman" is insulting to people, then you can just show yourself the door. Grow up.
 
I agree there is no room for bigotry on this forum whether racial, gender based or politically-correctness based.

The context the statemnt seems to have been about how stuff is made cheaper elsewhere and by whom. If it is made in China, then it was made by the Chinese, or Chinamen.

The dictionary defines "Frenchman" as a native of France. It also defines "Chinaman" as a native of China.

Both words are derived the same way, yet because someone at some time chose to take note of one of the people being a different race, one of the words is considered "offensive."

So what's the big deal? If he changed it to "Chinese" would that make it any less racist in your mind?

It certainly wouldn't change the context of his post. It would still express frustration that things are made cheaper elswhere and that bothers him.

just my 2 cents worth.
 
Look,I am not trying to raise in internet argument with anyone. I am not sure what your geographical area is like in terms of the mix of population, but where I live, I am surrounded by all types of races, genders, etc. I have gay clients, african american clients, asian clients, middle east clients, etc.

I can tell you this: If the word "chinaman" slipped from my mouth in front of my asian clients, I would be loosing a job out of insult. What if I called my gay client a "homo"?

If you live in an area with only white folks around, I can figure your thinking.

But, it's wrong language in this day of age.
 
Canada, being the ethnic mixing bowl that it is, political correctness is a must. Even private conversations have landed people in the court room!

A little more back to subject, I wonder if the other trades are lowering their rates in these economic times. Plumbers and electricians are considered "REAL" trades here. They have a regimented scheme of education and apprenticeship. This seems to allow these trades to charge fairly expensive rates with not much overhead in equipment. The other consideration is the risk associated with doing their job. Plumbers are somewhat similar, but tend to have more inventory and a slight bit more risk to perform their job.

Comparing these two trades to arboriculture isn't such a large stretch. The difference being that arboriculture is a multi-faceted occupation. A person with a truck, saddle and something to cut with, can eek out a living, while there are operations that have millions invested in equipment. While owning ALL the equipment doesn't insure that it will be used properly, OR that the people running the equipment are taught to use it on the primary element of their work, TREES.

At this time, anyone who wants to work on a tree CAN. The majority of jobs in tree care require NO formal training, rather, Certifications are taken on a voluntary basis.

In Saskatchewan, the MORE highly educated professions like dentistry and medicine, have rate schedules that set a maximum price that can be charged. As we have Medicare, we don't see what this does to prices. In dentistry, it (in the government's opinion) makes having your teeth looked after, affordable to everyone.

It is important to remember when comparing different occupations, to compare apples to apples. IMO, the work, except for storm work, is an elective expenditure. When times are tough, prospective clients will prioritize the work on their property, to the dollars they have available. Much like we would do with our equipment and labor. We decide if we could do without a piece of equipment or an employee.

I am fortunate to have all my equipment paid for. It is NOT new, but is well maintained, and will keep us working until retirement. Tree companies that are owned by younger people will have an eye to the future. They will have to finance new expendature to keep up with eqipment upgrades and efficiency, as well as safety regulations.

IMO, each company owner is unique. They have different goals, equity in their operations, and client bases. I believe we have to take a REAL honest look into the mirror and determine what we have to generate for revenue to keep us going forward. This will tell us what jobs we should work on and which ones we should walk away from.

This whole topic is MAJOR in complexity, if I have overooked anything, sorry!
 
Yeah well Im still offended by your foul mouth MT and have to try and not get too worked up over it. Whoever stated the "Chinaman" wording Im sure was an innocent comment.

I think treedimetionals says it all.....good comment!
 

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