So me and a friend are starting up a haulage business, we have all of our plans planned out and what we want short and long term from it, we know how were going to operate etc, the one thing we are stuck on is the prices to charge.
We worked out a price plan we thought would work to cover all costs we will have going but when we come to try get work everyone says it’s to expensive, yet when we look at other people’s quotes its hard to see how they profit.
Example 4 bedroom house removals 380 miles apart and the company were charging £250, how do they mKe a profit ?
Is there Any one that could help with prices etc ?
Ryan090:
Example 4 bedroom house removals 380 miles apart and the company were charging £250, how do they mKe a profit ?
You may need to review your pricing model and look closer as to what the competition are doing. Don’t though get hung up on price, is there anything you can offer that adds value to your service that’s not being done by others? Can you establish contract with companies coming back so reducing your costs for your return. Can you use more fuel efficient transport? Do you have a Unique Sales Point (USP)? Can you specialise?
The thing with smaller removal firms Is they are prob using an older vehical wich is all brought and paid for where as an new start has prob just brought a truck on finance . And they have I list full of cheap labour will work for a few quid on the side. I would have thought You will have looked at a sector you know well enough to know what the rates are before you set out. But good luck with your new venture .
We have looked into it for a while and the price plan we worked out we were able to beat other quotes but there always seems to be someone that can beat our quote by way to much And I don’t see how.
Its all down to overheads, if your competitors have everything paid for, and their trucks are parked in someone elses yard for a nominal rent, they can afford to to lower the rates, or if theyre not paying a high wage, plus its called competition, and thats what drives prices down, its what the consumer wants, its what you can afford to supply the services for.
If your going into the removal business, then maybe if the job can be done with 2 instead of 3, thats a saving. And when i moved, i got it done for £140, that was 3 vehicles, and 5 people, from London to Kent, whereas i was quoted up to £500. I packed the boxes, but they wrapped the furniture, was polite, careful.
Just do your homework, get some quotes yourself, then see if you can beat them, if you cant…give up.
So how does £140 work with 5 people and 3 vans ? Minimum wage say £6, with a normal 8 hour working day that adds up to £48 each person, that’s a loss straight away from just wages.
Ryan090:
So how does £140 work with 5 people and 3 vans ? Minimum wage say £6, with a normal 8 hour working day that adds up to £48 each person, that’s a loss straight away from just wages.
because the more you have the more you do never heard of loss leaders do a job at a loss to pick up a bigger pay day ( Move the local estate agent managers home contents at cost, get his recommendations on future sales).
every day aint a pay day …
You need to work out standing costs
then running costs
so every day your working it has to cover days your not.
have you thought of subbing to the likes of B&Q, Homebase and DFS … House move are gen thurs fri work with the odd sat . home deliverys you could do mon tue wed. someone wants a kitchen delivered or a bathroom suit.
The answer to what you should be charging should be answered by your business plan.
If it isn’t, & you need to ask here, then your business plan is wrong. If it’s your first time then you need trusted & respected advice. I doubt that you’ll find it here on TNUK.
Work out what YOU need to charge & then STICK to it.
Ryan090:
We have looked into it for a while and the price plan we worked out we were able to beat other quotes but there always seems to be someone that can beat our quote by way to much And I don’t see how.
Then you need to find ways to justify your charges or your not going to get the work. It is unlikely you will be competitive on price only unless you have deep pockets and are will to run at a loss to gain market share. Someone, somewhere will undercut if they can afford to do so. It’s a fact!
Therefore you need to either not do the work, or find ways to increase the value of your service by offering something that the competition is unable or unwilling to offer. You need a USP, if you don’t have one then there is little the client will gain by using a more expensive service like yours.
Chas:
The answer to what you should be charging should be answered by your business plan.
If it isn’t, & you need to ask here, then your business plan is wrong. If it’s your first time then you need trusted & respected advice. I doubt that you’ll find it here on TNUK.
Work out what YOU need to charge & then STICK to it.
This ^^^
If you have no idea what to charge or how to run the business, you are not going to be successful. More research is needed and a proper business plan.
If you don’t, it will just end up being a very expensive pain in the arse.
