Customer keeps telling me to ask for more money.

[D&B Mack]

How I am going to put this is kind of confusing, but here is what I have learned over the years.

Don't let the market dictate your costs. If you are short on work, you may have to find a way to work down your prices to be more competitive in the market; but do not work for market prices just to get work. Basically, you need to know your costs.

Are you making a profit working at the prices you are at now?

If so, then the only reason to raise your price is if you want to make more money, but don't necessarily want to do more volume. If you want to increase volume, then keep your profit margin at your pricing level.

If you are not making a profit, you either need to raise your prices or lower your costs.

Seems like simple stuff, but I have seen so many times where guys price their services/products just based off the perceived market value. This can be disasterous; you may be working at a higher cost than someone else and you are not turning a profit where they are. But by the time you figure this out, it is too late. You also do not know how the competition came up with those numbers. They may be making additional monies off another product or service you are unaware of.

About your initial question, guess you can't argue with a guy who wants to pay you more. But if you are making money, and you want more work, I would politely decline and tell the customer "Sir/Madaam, I am doing fine with numbers and they are acceptable to me. If you feel that I am too cheap, please tell your friends that I am the cheap guy who does quality work." :msp_smile:

 

[HappyTreesLLC]

I never price a job base by color, sex, income, location etc.
My price is always fare to every one.
Hire accountant to calculate how much your work hour is actually cost. Include all factors like retirement, bonuses, losses, marketing, sales, maintenance, depreciation .... accountant knows.
And then charge it.
If you set up to run of crappy pickup truck and pricing base on it, don't cry about not having money for shiny International.
If you not respect your work - ho will?
If you pricing based on Craigslist competition - you are not businessman, go work for large tree company. You will do better. They (tree company) will respect you and take care of your salary, benefits etc.

Here is test for you:
1. How much cost you a lead, how much customer?
2. What is dynamic and static operational cost?
3. What is your cost of removal material from site per ton?
If you are more then 2 years in this business and have difficulty to answer - get out or grow up.
With best intentions and no disrespect.
If you need help call me 603.508.1060
Victor

 

[HappyTreesLLC]

...
If you are not making a profit, you either need to raise your prices or lower your costs.
...

This is GOLD!!!

 

[lknchoppers]

I would put it to him, just to make him happy but I wouldn't make him squeal to bad. Then take you time and do a little extra. Beating people on craigslist makes everyone work too cheap anyway. Check on him a week later to make sure he is satisfied and be sure he will refer you to his buddies.

 

[Marshy]

Iv never been a huge fan of asking for more money, Do your best and you'll get it your just rewards in the end. I would say "This is my rate, if you feel I deserve more, then I'm willing to accept what you feel confortable on giving me." I wouldn't exactly turn it down for two reasons. It may be insulting, like refusing a gift. And we could always use more money.....bigger saws, better equipment...

Exactly. Reminds me of story my sister in law told me about waiting tables. Lady pays cash for her bill and when my SIL brings her the change ($0.30!) she has enough ballz to say "oh honey, you could of kept that" as she dumps it into her purse. Apparently they lady thought she deserved the change as a tip and mid sentence is dumping it into her bag!

Kind of the same thing here. He says you should charge more but hasnt slipped you an extra $20, $40 or $50 when you give him the bill. If he felt you deserved more he would have given more IMO. If you are paying for a service and feel someone is going beyond the duty and providing outstanding service then it's as simple as giving a tip. Anyone can be tipped. The guy pumping gas, drying your car at the car wash, your landscaper, the plow guy, or your arborist.

 

[blades]

Well there is always the the utility method and the waste/ trash collector methods of improving bottom line. It is called surcharges and fees like: environmental, fuel, mileage, consumable/ shop material fees. So you quote then add the surcharges at the bottom. Some due this on a fixed charge others on a percentage basis.
Say you due a job and you dull out 5 chains- what is the cost for sharpening in your area - you charge that as a material/shop fee beyond the base quote.
This has become more of the norm than the exception now days.

 

[ChoppyChoppy]

I raised my prices a bit this year from last and doubled my delivery charge.

I wasn't too sure if it would make break me. Honestly I have more business this year than last. A ton of repeats who have said I was "too cheap" last year and don't mind paying extra.