Reading here and other venues I pick up that farriers/horseshoers and ironhangers etc . seem to always attempt to read into the customer bases ability to pay for services. To that I will add that in the past few days I have had two phone calls looking for locked in pricing for the next year. I have for some time noticed that UPS and Fedex, the two main delivery companies here in the USA and I think the world always keep their pricing liquid, ie adjustable. Getting back to the two phone calls, I noticed with both parties that they did not seem to care if I made ANY profit so long as they got product at a set price. Does anyone else feel that looking at these two business models(UPS and Fedex ) might be helpful. Regards Ray
Personally I don't promise anyone no price increase, fuel, price of steel, price of nails, price of aluminum, tires, trucks, oil changes, ALL the costs of my business is fluid. I don't now, nor do I intend to start absorbing all those cost increases and taking them out of my profits. When people call and the first or second question out of their mouth is about cost...I can almost guarantee they won't like my price. I love when my customer that complains about my price increases has a husband or wife in business for themselves. I always ask them is they absorb the increase in the price of supplies, fuel, etc...they always start to stutter...then I say "yeah I didn't think so...why should I?" I've yet to have one of them give a reason why I should.
I go on the price of gas. Last hike I charged a surcharge for each stop. If that price remains steady for over six months, then will be added into the price for services to fight inflation.
I love dealing with price whiners. One gal told me she had "filed"the filly's feet so that I wouldn't have to charge full price. I replied that would be repair work on my part and would probably cost more. She went off on how she just couldn't spend so much money on the horses, so I informed her that she would be saving a bunch that day as I loaded my tools. When I get a call and the first thing they ask is my price, I tell them that I believe I'm one of the most expensive, but if they can find someone higher, I'd be willing to match that price. I just stay at the high end of the local heap. When I travel into Oregon, I'm about $30-$40 more than the locals there.When I do raise prices I just do it
I'm at the same price i was 5 years ago and have had clients asking me to drop a bit what do you do drop the standard of your work?
Agree with you,Jhon and Gary. I'm losing many clients cause of crisis. I charge 20 euros more than the most f the farriers here. I dare not to increase my prices.It's to survive issue.
I don't understand that John. Over here we have farriers falling all over each other. As you know all you have to do over here is buy some tools to get started, while over there the profession is highly regulated, resulting in fewer but more highly skilled ( on average) farriers per thousand horses. Most of the folks on here seem to charge premium prices for their area, and make a decent living. I'm the highest in this area, even though I'm not that good, and nobody tries to negotiate price after I have started with them. Like Bill A. I do usually nip that in the bud on the first phone call. Sometimes I don't get the client, but every one I do take comes off a waiting list. We do have plenty of farriers up here - 5 full time and a half dozen or more part timers for about 1500-2000 horses in a 60 mile radius, I'd guess. Prices range from $25 to $40 per trim, and $75 to $100 for a full set. It astounds me that someone who does your quality of work would even be questioned on price and wouldn't have a line of prospective clients outside your shop. What am I missing? Regards
You lose the awful crisis that there is in Europa,specially in the Portugal,Ireland,Greece ,Italy and Spain.Here,the clients that was their horses in barns around Madrid,vg, take the horses in the field,and liberate them in a paddock.No work,no shoeing,no vet is they are sore,etc.. This morning I can see some fields like I say; Ten ,eleven or more horses hoping a bit of feed and straw,with the drinking trough frozen.This horses was shod and his farrier was happy.Today,the farrier wonders "Where are my clients?"
Thanks John and Gabino. I guess I didn't realize how bad it really is over there. Northern Maine has always been a depressed area in the US, so recessions don't hit us as hard. The US is also experiencing a slow recovery, I guess I thought the UK was as well. I know the areas Gabino mentioned were still struggling. Regards
Not only that, in the uk there are more and more qualified lads being turned out all the time and less and less horses to go round due to the economic climate.
There are NO new horse owners in my area either..you either pickup someone that is pissed off at their shoer or old clients come back...
Energy fuel surcharge...is what is known to change in the industry I once worked in...we often made companys lock in on alum ..steel ..and glass prices..but fuel surcharge always floated.. but also if a job was sold but would not take place for a year later we would lock the quote price and surcharge...but we would have contract in hand...if a clients wants to sign a contract with x amount of shoeings per year I be more than happy to lock a price... ray if you guys was pre order a load of shoes or such and sign contract ...would you be ok locking in a price..
Travis, with a sizable down/pre payment an order could be locked, this would allow for purchasing of the materials and energy to make the product and storage until used. things like this will work if there in not volatility in markets. As is often the case, the folks who want the lock also want the lowest price, so if someone is going to buy at todays price to secure the commodity the seller needs to receive todays price and mark up to deliver it 6 months from now and be in some way secure in receiving payment or have received. But some payment for the future must be made now! Ray
