Formula for pricing jobs

[Stuart91]

To save losing regular customers I would think of offering three year fixed price deals for a known, reliable service. As a purchaser I looked for these deals which meant both me and the supplier could budget sensibly. The supplier could then rely on the income from and, sales-wise, ignore that event and concentrate on selling to new customers. Just one idea.

 

The one thing to beware of with deals like that is that some of your costs can rise in the meantime, but your income is fixed. The most obvious one at the moment being transport costs - I wouldn't like to guess what a gallon of diesel will cost in a couple of year's time!

 

If you are feeling creative, you could write clauses into the contract that get around these issues, but it does take away from the simplicity somewhat.

[Junior8]

it's more to do with new business

especially the one off events. I'm just trying to bridge the gap between clients expectations and their budgets.

I know sometimes this will never happen, but on the ocassions that we think it can we want to provide the best service we can with a competitive price.

 

The one piece pf advice I was given when I started on business that I'd pass on to anybody else is 'Never chase a sale on price!'. The other was that 'Turnover is vanity but profit is sanity'. They are both saying the same thing of course. I think your new business motto is one that sums it up well.

 

I think the problem is that over the past decade things have seemed, I say seemed, so stable that many small businesses have let things drift and now find that they need to make changes in their pricing regimes at about the worst possible time. But of they wish to be in business long term that's what they'll have to do - and hope for the best.

 

I wrote this before I noticed that you are in the ROI. All I can say then is Good Luck!