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TOPIC: systems for raising prices

systems for raising prices 18 Jan 2012 00:29 #1

I am interested in hearing anyone's input that is willing to give it on your system for raising prices or one that you have seen someone else using. I am a young farrier only a year and half in and want to make sure I get some systems in place to avoid future headaches. Any advice would be greatly appreciated.
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RE:systems for raising prices 18 Jan 2012 00:55 #2

  • Bill Adams
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Next Monday, tell them you want more money.
It's scary to do your first, but you'll get used to it.
What's your name?

A rightous man regardeth the life of his beast. Proverbs 12:10
I don't give a damn for a man who can only spell a word one way. Mark Twain
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RE:systems for raising prices 18 Jan 2012 00:57 #3

  • Gary Hill
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Nowdays around here they just say, whats the name of that guy that just finished the Two Week school??:mad:
"As I see it, winners get the money - while losers talk of "individual goals" and similar stuff." Tom Stovall
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RE:systems for raising prices 18 Jan 2012 04:07 #4

  • vthorseshoe
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Come on Bill and Gary, this person asked a legitimate question.

Give him/her some time on here before you give him/her the treatrment...:D

Help this person with good suggestions....:)

You both are old time pro's and advice from either or both of you is worth its weight in gold....


And it is a requirement for posters to sign with their name so it goes on each new poster to also to help others take you serious with a signature. :o

my 2 cents worth ;)
"you may not like what I say" !
-but-
"you'll never have any doubts where I stand
quote Cindy Matthews 1948-2006


I thought my life had come to a close with Cindy's passing, but there is life after death Thankyou Sharon !

Bruce Matthews
Southeast...
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RE:systems for raising prices 18 Jan 2012 04:55 #5

I find out what every one else in my area is charging and make it my goal to be 10.00 higher.

The last couple of years, I just follow John Muldoon's prices. In some areas I charge more if I have traveled more than 3 hours.


I do it a couple of ways, I figure out what I want to be charging, and raise my prices as much as 15% a year, some times as little as 5 %. I start with new customers in Jan, and catch existing customers up in June. gives you a chance to see if the market will bare it before making the jump across the board.

One thing to remember, the people who are farrier shopping in the spring, probably got dropped by their last guy for blowing him off all winter, or their horses are miserable. They probably don't have much of a choice than to pay whatever you are charging. If you are lower than everyone else, be brave make big jumps.

For existing customers that I value, I leave a note on invoices telling them to watch for price increases after Jan 1 or June 1. A heads up sometimes helps the medicine go down.

For the customers that I would not mind if they moved on, I sometimes raise there prices in Dec also. But only if I can afford to lose them, lol:D

I make price notes in my contact list so I know who is at what price.

add on prices are the same for everyone.

One way to establish a Pricing goal is. Figure out how much you realistically want to make in a year.

Until you figure out your actual profit margin, 40 percent is a nice round number.

Take your goal and multiply it by 2.5 this will give you your gross goal for the year.

For example if you want to make 40,000 pr year, you need to gross 100,000.

Divide that by the number of weeks you want to work a year.

My goal is to work 48 weeks a year.

So you gotta make about $2083 a week.

How many days a week do you want to shoe. I like to shoe 4.

You gotta make about $520 a shoeing day.

Then how many horses, do you want to shoe a day if you only shoe. I like 5.

That's at least $104 for 4 plain shoes.

use what ever method you like to decide on trim and 2 shoes from there.

This is just a nice easy way to set some goals and know what you have to do daily and weekly if you want to make your year.

I have lots of other things I like to do so I don't go crazy shoeing horses. doing huge numbers a day or week.

It never works out this simple when you are actualy trying to do business, but it is a starting point.:eek::D
Jason RoTramel
RHC Farrier Service

Shut up and get it done!
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RE:systems for raising prices 18 Jan 2012 04:56 #6

  • Bill Adams
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vthorseshoe wrote:
Come on Bill and Gary, this person asked a legitimate question.

Give him/her some time on here before you give him/her the treatrment...:D

Help this person with good suggestions....:)

You both are old time pro's and advice from either or both of you is worth its weight in gold....


And it is a requirement for posters to sign with their name so it goes on each new poster to also to help others take you serious with a signature. :o

my 2 cents worth ;)
Sorry Bruce I'll give it a go.
Anonymous,
When setting prices you will have to consider the market in your area. Price yourself among the higher priced Farriers in your area.
Do a price/cost analysis to see your net profit per shoeing.
If your research shows that you are showing lower income/profit in these areas, then next Monday, tell them you want more money.

A rightous man regardeth the life of his beast. Proverbs 12:10
I don't give a damn for a man who can only spell a word one way. Mark Twain
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RE:systems for raising prices 18 Jan 2012 05:14 #7

  • Gary Hill
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Bill Adams wrote:
Sorry Bruce I'll give it a go.
Anonymous,
When setting prices you will have to consider the market in your area. Price yourself among the higher priced Farriers in your area.
Do a price/cost analysis to see your net profit per shoeing.
If your research shows that you are showing lower income/profit in these areas, then next Monday, tell them you want more money.

What Bill said, but the truth still lies in the whole horse industry and the mess the whole country is in....some spend, others shop for cheap....hay at out of site prices, they let the feet go longer=more work for us to get them back into shape...and get ready for gas to go up again, 27 cents in two days last week....I had a long time client cry over the price of handmade sliders last month, so now he will buy premade and I will charge my price to nail his shoes on...lets get a real President in that can create JOBS and alittle more rain before the hay season and all will be good in the world for a day or two..Honest enough??:D
"As I see it, winners get the money - while losers talk of "individual goals" and similar stuff." Tom Stovall
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RE:systems for raising prices 18 Jan 2012 16:29 #8

  • Bill Adams
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Another thing, depending on local economy, is that if you raise your price 10% and then lose 10% of your clients, you're still making the same income with two days off a month, with pay.
The higher your price, the sooner you'll move into a higher end clientele.

A rightous man regardeth the life of his beast. Proverbs 12:10
I don't give a damn for a man who can only spell a word one way. Mark Twain
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RE:systems for raising prices 18 Jan 2012 20:39 #9

  • texfarrier
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Another thing to remember is what your clientele is or what kind of horses your dealing with...around here you mostly have rodeo and hunter jumper... I can charge $175 for 4shoes clipped and thats middle of the road some guys are at$150-$200 for a full set but on the other hand when I'm shoeing a barrel horse are roper $105 for a set is the best I can get and that's high end for this clientele there are still guys around here willing to shoe one for $50....in this stage of my career I am shoeing just as many jumpers as barrel and roping horses and I'm not sure what clientele I would rather deal with both have their advantages and disadvantages.... So as far as raising prices go it depends on your clientele and if you can afford to lose some clients...I usually will raise mine in the summer that's when my phone rings none stop and I'm dog tired and don't feel like dealing with any of them I just go at it with a i don't give a **** attitude and it always works out.


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Austin Russell
"Uva Uvam Vivendo Varia Fit"
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RE:systems for raising prices 18 Jan 2012 21:12 #10

  • Alicia Thompson
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Jason RoTramel wrote:
I do it a couple of ways, I figure out what I want to be charging, and raise my prices as much as 15% a year, some times as little as 5 %. I start with new customers in Jan, and catch existing customers up in June. gives you a chance to see if the market will bare it before making the jump across the board.

...

For existing customers that I value, I leave a note on invoices telling them to watch for price increases after Jan 1 or June 1. A heads up sometimes helps the medicine go down.
Same for me except I use January and July. lol I figure raise the prices after show season has started and they will be less inclined to price shop. lol

Oh and I give everyone a heads up their first appointment of the new year but being that it's 6 months away no one panics.
Forget thinking outside the box, instead realize there is no box.
- Alicia Thompson


http://thompsonfarrierservice.com
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RE:systems for raising prices 18 Jan 2012 23:27 #11

  • Jay Mickle
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Alicia Thompson wrote:
Oh and I give everyone a heads up their first appointment of the new year but being that it's 6 months away no one panics.

What other profession gives clients advance info on price increases? Doctors? Dentists? Accountants? Dog Groomers?
If you are not exponentially increasing prices I would bill as normal.
Jay Mickle
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RE:systems for raising prices 19 Jan 2012 00:09 #12

  • cyber steve
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If you need to increase and have enough demand to be able to handle some lost customers I would suggest you mention a price increase goes into effect whatever date their next shoeing will be on the bottom of their current bill. That seems fair. Probably a month's heads up, no one can say that's unprofessional. Don't get greedy and you should come out ahead/okay.
Steve Turpin

"Never confuse a single defeat with a final defeat." F. Scott Fitzgerald

"No philosophers so thoroughly comprehend us as dogs and horses." Herman Melville[/color]
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RE:systems for raising prices 19 Jan 2012 01:12 #13

  • Peters Shoeing
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I didn't read the whole thread but an easy thing to do is start quoting higher prices when you get calls from new customers.

I've found polishing the shoe on a grinder and really taking a few extra minutes when you dress the hoof to get a good finish go a long way and make the shoeing job pop. Get hoof putty to plug the old nail wholes and use a sanding block. Don't forget the dressing. i like Right Step. Little things like this have nothing to do with the mechanics of shoeing a horse but make the job look more expensive and easier for you to justify a higher price.
Alan Peters
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RE:systems for raising prices 19 Jan 2012 01:32 #14

  • Gary Hill
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Peters Shoeing wrote:
I didn't read the whole thread but an easy thing to do is start quoting higher prices when you get calls from new customers.

I've found polishing the shoe on a grinder and really taking a few extra minutes when you dress the hoof to get a good finish go a long way and make the shoeing job pop. Get hoof putty to plug the old nail wholes and use a sanding block. Don't forget the dressing. i like Right Step. Little things like this have nothing to do with the mechanics of shoeing a horse but make the job look more expensive and easier for you to justify a higher price.

Yea, considering IF they are actually there when you come and the horses legs are actually clean and not wet or muddy, I am going to spit and shine them so when they come home and recatch their horses they will notice all that work under the new mud attached to their legs!! Seriously, I have lost really big accounts over $5??? It must be part of the "Change" that the new pres brought to our country, everyone is counting their change...barns are closing all over the place here and trainers are going back to driving trucks...
"As I see it, winners get the money - while losers talk of "individual goals" and similar stuff." Tom Stovall
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RE:systems for raising prices 19 Jan 2012 02:14 #15

  • MPLdyCop
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I'm starting a $5 fuel surcharge tomorrow. In June all services go up $10. I'm giving notice verbally this month, then by letter in May.

Gary, that sucks.

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Kim Turner

www.totalhorsecare.net



Dr. House "You were right, Counts for nothing if you can't defend it."
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