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04-21-2005, 10:51 PM
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Administrator
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Join Date: Jan 2003
Location: Wisconsin
USDA Zone 4
Posts: 7,551
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Residential Landscaping Clients: Once a customer, always a customer?
We're doing a small project for a client that we've done some work for in the past. She'll also be having some fencing work done by one of our competitors (not a problem, we don't really do fencing, anyway). During one of our conversations she said something about how this other company's owner told her "Once a customer, always a customer". The context of this quote was they had done a large fence for her before, and this new project was much smaller, and she was wondering if it was too small for them.
It made me think - you know, I don't think I'm the same way. I've found that sometimes after a big project, a client will continue to call us for rinky-dink projects, which we will usually respectfully decline to bid on.
How do you feel about this issue - if a client plunks down 10 large on your company, are they a client for everything, even the $50 tree limb removal?
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04-21-2005, 11:18 PM
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Gold Oak Member
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Join Date: Nov 2003
USDA
Posts: 1,882
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Make a minimum amount you charge regardless of work done. Explain why. Think of how the plumber operates. $85.00 an hour to appear, and $85.00 per man hour there after. Structure your calls like that and you will make money. Charge for the drive time. You have overhead, and the other unalienable besides the persuit of happiness is the right to turn a profit. Preferably more than less.
If you get paid your hourly rate for all time spent on whatever job you got going, what is the difference?
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Bill Schwab
In the year 1491, if the Naturescape Landscape Company did the site work in Pisa, Italy, they would not be calling it the "leaning" tower.
Encinitas, Ca. 92024
www.naturescapelandscape.com
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04-21-2005, 11:25 PM
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Acorn
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Join Date: Mar 2005
USDA
Posts: 18
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Bill
That is a very good thing to think about the way gas prices are it cost more money to run now. I have a cleint that I mow her yard last week she asked what it cost to mow to I said $15.00 per time . Today I mowed her lawn and she said that the gas is high so she paid me $25.00 to mow her lawn. I haven't every seen or heard of a cleint giving more than what we charge. It seemed funny.
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04-21-2005, 11:34 PM
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Ranger
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Join Date: Jun 2003
Location: Southwest ct
USDA Zone 6
Posts: 1,742
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I like to keep past customers happy , but admit that I don't get compensated well enough for it. I like Bills idea.
If you balk at the small job will they remember you for their next 10 large job in the back of the house? Will they tell their friends that Stonehenge BPL is the greatest and has always been there for them? Create good will ....
Recently had a plumber out to fix two leaky faucets. Even with me talking to him as he worked he got $175.00 for materials and labor in less than one hour. He was a fourth generation plumber and impressed the heck out of me with customer service and technical ability. There is a lesson to be learned there somewhere.
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As a father I was always aware that I was raising my sons to leave home, marry, establish families, and be men who could stand on their own two feet. We must fulfill our own destiny. I really wasn't concerned about what they might 'do' but I wanted them to 'be' good men.
- David Epps
Last edited by jwholden : 04-22-2005 at 12:02 AM.
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04-21-2005, 11:41 PM
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Acorn
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Join Date: Mar 2005
USDA
Posts: 18
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What do you guys charge per hour on a job. Right now I'm at $20.00 per hour for myself and $15.00 per hour if I have someone help me.
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04-22-2005, 12:05 AM
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Gold Oak Member
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Join Date: Sep 2003
USDA Zone 7
Posts: 473
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Quote:
Originally posted by shawn
What do you guys charge per hour on a job. Right now I'm at $20.00 per hour for myself and $15.00 per hour if I have someone help me.
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There cant be any way that you are making any money if you are paying all taxes, insurance, license fees, etc. My hourly charges are between $65 an hour up to $150 an hour.
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Matt Thompson
Thompson's Landscaping
Henderson, NC
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04-22-2005, 10:45 AM
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Gold Oak Member
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Join Date: Nov 2003
USDA
Posts: 1,882
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Shawn:
You need to assess what it costs you to operate. NCSU is right. If you paid yourself $15.00 anhour, which, by being an owner you are entitled to at least that, by te time you added a 33% labor burden (I'm using ours) yuo would have .05 on the table after you paid yourself. So, with a nickel an hour, how can you afford to buy gas without tapping into your salary? Then there are small things like....oh, insurance, trucks and equipment, repairs of said equipment....
We charge $72.00 per man hour for labor. That is going up if our insurance increases to what they say it might.
__________________
Bill Schwab
In the year 1491, if the Naturescape Landscape Company did the site work in Pisa, Italy, they would not be calling it the "leaning" tower.
Encinitas, Ca. 92024
www.naturescapelandscape.com
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04-22-2005, 10:51 AM
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Gold Oak Member
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Join Date: May 2004
Location: Lake Geneva, WI
USDA Zone 5
Posts: 1,243
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And I thought I was expensive at $45/guy!
In Shawn's defense, costs vary by region, and there is a limit to what any market will bear. Breaking in also requires sacrifice.
Still, considering the amount of work we have generated this Spring, it must be time to raise prices again...and that $75 estimate fee is looking mighty attractive, damn near essential.
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04-22-2005, 01:29 PM
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Ranger
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Join Date: Feb 2003
USDA Zone 4
Posts: 1,014
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Shawn....fill in your location. We might have a better chance of understanding your particular situation but $20 hr seems very very low irregardless of where you are at.
Most of us here would consider it an honor to have the opportunity to help you out should you need it in regards to understanding the actual costs of doing business.
in regards to once a customer.... Bill's approach would solidify it so that all that ancillary work is profitable. I agree that as long as it pays well, and you can handle the work, what's the difference?
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04-24-2005, 11:52 PM
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Acorn
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Join Date: Mar 2005
USDA
Posts: 18
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I just updated my profile so it should help you all out. I read all the threads and some of the things you said I never thought about. I mow lawns as well and the poeple ask me what I charge to mow so I said $15.00 per lawn. Most of the lawns are around 12000 to 15000 sq.ft. The area I live in is a town that is 1100 poeple and most are retired.
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04-25-2005, 08:03 AM
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Gold Oak Member
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Join Date: Nov 2004
Location: Long Island, NY
USDA Zone 6
Posts: 1,322
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Once a customer, always a customer.....
Oh........I like that.
Look at the benefit........you already sold yourself the first time....It's a win, win situation all the time. That is why I market my customer base for side work and enhancements as much as I do.
I love getting calls.........."Just calling to ask that you plant the front and back with annuals. Use what ever you need and just send the bill"
Or..............." The side of the house as some bushes that we feel is time to take out. It's crowding the walk to the back.......When you can pull them out and replant with what ever you feel is best, Thanks!"
I get calls like this all the time from my customer base...
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