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Old 10-10-2010, 11:31 PM
domain311 domain311 is offline
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Join Date: May 2010
Location: Long Island, NY
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Originally Posted by cpel2004 View Post
"Smart one," I think you have your answer. By the way it is your business. You pay taxes... you pay insurance... you pay the shop mechanic... Ah yeah its your business.
Thanks for the reminder...I'm also not too ignorant or arrogant to ask questions and willing to listen to some reasonable feedback. Maybe I'm wrong but last I checked that's what this place is great for...
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Old 10-12-2010, 11:37 PM
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the ace the ace is offline
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We go up about 2-3% every year. Gotta keep those green backs comin' in.
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Old 10-17-2010, 01:41 PM
gonemowin1 gonemowin1 is offline
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Location: MN
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I also occasionally do work on a time and materials basis. If you list an hourly rate in your contracts or proposals, just raise the figure when you send out your renewals. If you havent provided them a written price, just start qouting your new rate. I wouldn't make a big deal out of it by notifying anyone, most clients won't even notice.
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Old 10-18-2010, 04:34 AM
Stillwater Stillwater is offline
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Location: The United States
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Originally Posted by wbw View Post
Why would your customers know your hourly rate? What type of work are you billing for hourly?
I could think of a few reasons why a regular long term customer would know my labor rates and I often list my per man per hour labor rate in a clause on a contract, sounding something like this. All change orders and work performed beyond the scope of this agreement will be billed out at ...... per man per hour plus materials.

Ahhh the old Labor rate increase letter......
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Old 10-18-2010, 07:29 AM
Roger Roger is offline
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Location: McMurray, PA
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Some of the posts in this thread sound like the LCO is living in a time warp, somewhere in 2007 or early 2008.
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Old 10-22-2010, 09:36 PM
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4CORNERS 4CORNERS is offline
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Location: Seminole, Florida
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Plain and simple, a good business man doesn't send a customer a bill with raised prices without some kind of notice. Lastly, why do some of you guys ask questions and advice and get it from guys who have been in the business for many years and then gripe? Grow up....just a little!
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Old 10-24-2010, 11:40 AM
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AndyTblc AndyTblc is online now
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Location: West Michigan
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my customers don't know my hourly rate. I just do that work and send them the bill with the final total.
A lot of them if I told them the hourly rate they would crap their pants and try to feed me the "well minimum wage is $7.40, why are you working 5x higher than that". Then you have give them the speech about you have to pay for this that him her there and here. And chances are they probably still wouldn't understand.
But the hourly stuff I do is the big leaf clean-ups. Or trimming tree's or bushes or mulch.
But basically mowing, and the works are done as a set price each time.
I don't let them know if I up my prices for the hourly, because each time is different, usually it's whatever I feel like charging that day. The more grumpy I am the more they get charged. But trust me, I make money no matter what I charge.
But if I do up my prices for mowing, it is done at the beginning of the year, and I send out a letter before hand stating this is whats gonna happen.

2008 GMC 1500 SLE 4x4 Z71 Ext. Cab
2007 Chevy Impala
I retired from mowing lawns
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Old 11-12-2010, 06:11 PM
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Fresh_Cut Fresh_Cut is offline
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Location: Atlanta, GA
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Originally Posted by AndyTblc View Post
But if I do up my prices for mowing, it is done at the beginning of the year, and I send out a letter before hand stating this is whats gonna happen.
Do you use contracts?

Or do you just call all your customers at the start of the season to see if they will need you that year?

I'm trying to find out how these "handshake" LCO's work
2004 NPR HD 16' box truck w/ 4' dovetail
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Old 11-14-2010, 11:55 AM
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DanaMac DanaMac is offline
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Join Date: Mar 2002
Location: Somewhere in the state of CO
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Since I am strictly irrigation service, all of our charges are hourly. No set bid price, no contracts, work done as needed. If someone calls for sprinkler work, I get them on the schedule. If they are new customers I tell them the price. If they are existing customers, they already know approximately what we charge, and unless they ask, I don't tell them about any rate increases. They know and trust our experience and pay the bill. Some people are shocked at what we charge, and some would still be shocked if I charged $25 per hour less.
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Old 01-02-2011, 09:25 AM
khutch khutch is offline
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Location: Atlanta, GA.
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Originally Posted by the ace View Post
We go up about 2-3% every year. Gotta keep those green backs comin' in.
So next year your $40 yard is $40.80????
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