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Thread: Gst

  1. #16
    Member wceagles1's Avatar
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    Apr 2009
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    Northern Rivers NSW
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    Default Re: Gst

    Hello Simmo

    Sorry for the thinking you where simo,for whats it worth went to optometrist today for new glasses as was using my previous glasses as safety glases.

    Please accept my apology.

    Just curious, the component that you are well over the $75K threshold, do you know if you still need to pay the GST?

    Yes,all GST requirements are activated and hence i have taken a 10% pay cut, untill i pass on this on to my clients.

    Thus ,my major fear and concern here is that all the hard work and effort (7 days a week at times) that i have put in over the lasr 3 years could all fall over by hitting my clients up with a 10 % price rise.

    Short term 5% i think they can handle and thankyou to all for that idea.

    Kind Regards

    West Coast Eagles 1

  2. #17
    Senior Member Lawn Mowing Professionals's Avatar
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    Jan 2010
    Location
    Greystanes NSW
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    1,252

    Default Re: Gst

    Quote Originally Posted by wceagles1 View Post
    Hello Simmo

    Sorry for the thinking you where simo,for whats it worth went to optometrist today for new glasses as was using my previous glasses as safety glases.

    Please accept my apology.

    Just curious, the component that you are well over the $75K threshold, do you know if you still need to pay the GST?

    Yes,all GST requirements are activated and hence i have taken a 10% pay cut, untill i pass on this on to my clients.

    Thus ,my major fear and concern here is that all the hard work and effort (7 days a week at times) that i have put in over the lasr 3 years could all fall over by hitting my clients up with a 10 % price rise.

    Short term 5% i think they can handle and thankyou to all for that idea.

    Kind Regards

    West Coast Eagles 1
    you didn't owe me an apology... but i'll accept your apology anyways

    My advice regarding only increasing 5% is to work out the numbers.

    for example,

    If you are turning over $100,000 (example) by only collecting 5% increase you are effectively giving up $5000 ($100 p/w).

    by increasing 5% you may still lose clients at the same rate as 10% or you might lose no clients at all. If you increase 5% now, when would you plan to increase the additional 5% and also any other increases in the future? (increase costs, inflation etc)

    Although price is a factor initially when purchasing goods or services, rarely is it a determing factor (people will pay extra for brand names, exceptional customer service and convienience if they have had a good buying experience)... When people say things are to expensive, they are usually making up an excuse (monetry) as they can't justify the percieved value in what they are purchasing.

    I know there are alot of factors (economic conditions, competition that advertise well etc) that can also influence customers but this shouldn't be an issue if you have a good relationship with your clients over the past 3 years.

    It's your business, and I'm sure you will make the right decision... It's another reason why a business plan is so crucial to business success as you can make neccesary changes prior to events happening...

    growth periods are what make or break all businesses... unfortunately, most break.

    have a really good think about a decision that works in your best interest and maximises your profits.

    Simmo.

  3. #18
    Senior Member Lawn Mowing Professionals's Avatar
    Join Date
    Jan 2010
    Location
    Greystanes NSW
    Posts
    1,252

    Default Re: Gst

    Quote Originally Posted by wceagles1 View Post
    Hello Simmo

    Sorry for the thinking you where simo,for whats it worth went to optometrist today for new glasses as was using my previous glasses as safety glases.

    Please accept my apology.

    Just curious, the component that you are well over the $75K threshold, do you know if you still need to pay the GST?

    Yes,all GST requirements are activated and hence i have taken a 10% pay cut, untill i pass on this on to my clients.

    Thus ,my major fear and concern here is that all the hard work and effort (7 days a week at times) that i have put in over the lasr 3 years could all fall over by hitting my clients up with a 10 % price rise.

    Short term 5% i think they can handle and thankyou to all for that idea.

    Kind Regards

    West Coast Eagles 1
    you didn't owe me an apology... but i'll accept your apology anyways

    My advice regarding only increasing 5% is to work out the numbers.

    for example,

    If you are turning over $100,000 (example) by only collecting 5% increase you are effectively giving up $5000 ($100 p/w).

    by increasing 5% you may still lose clients at the same rate as 10% or you might lose no clients at all. If you increase 5% now, when would you plan to increase the additional 5% and also any other increases in the future? (increase costs, inflation etc)

    Although price is a factor initially when purchasing goods or services, rarely is it a determing factor (people will pay extra for brand names, exceptional customer service and convienience if they have had a good buying experience)... When people say things are to expensive, they are usually making up an excuse (monetry) as they can't justify the percieved value in what they are purchasing.

    I know there are alot of factors (economic conditions, competition that advertise well etc) that can also influence customers but this shouldn't be an issue if you have a good relationship with your clients over the past 3 years.

    It's your business, and I'm sure you will make the right decision... It's another reason why a business plan is so crucial to business success as you can make neccesary changes prior to events happening...

    growth periods are what make or break all businesses... unfortunately, most break.

    have a really good think about a decision that works in your best interest and maximises your profits.

    Simmo.

  4. #19
    Senior Member AJD Mowing's Avatar
    Join Date
    May 2011
    Location
    Southerland Shire NSW
    Posts
    2,877

    Default Re: Gst

    I know someone who likes talking GST

    AJD Mowing Giving Back Your Life

    http://www.ajdmowing.com.au/

  5. #20
    Member Redeye's Avatar
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    Mar 2009
    Location
    Shoalhaven ,NSW
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    5,548

    Default Re: Gst

    you're a crack up dean




    http://curraronggardening.com/

    "All sin is washed away in the Holy goodness of Beer"
    Book of Redeye, Psalm 69

  6. #21
    Senior Member Chris B's Avatar
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    Mar 2010
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    Default Re: Gst

    you could also pass on the full 10% to all customers but just try it gradually first to judge how ppl take it. Most are understanding as you are just adding 'the goverment tax' as you have no choice. Also as you say you work hard up to 7 days a week why should you take a pay cut just because your earning more! If you loose a few customers you will just get you weekends back over winter until spring comes again also if you are paying someone to lodge you bas 4 times a year thats usually $600. dont forget to register for fuel tax credits if you havent already. another idea is if you have a $60 lawn that pays cash maybe just round down to 65 to keep it easy

  7. #22
    Senior Member fairdinkum's Avatar
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    Aug 2010
    Location
    St Clair NSW
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    Default Re: Gst

    Just a thought but why not just add the 10% in full as of RIGHT NOW. You have to pay it RIGHT NOW! Essentially you are saying that 10% of your time away from your family is worth $0 to you. You may (or may not) lose a few clients. But the kind of client that would expect you to break the law just to save a couple of dollars is not the kind of client you should want to be dealing with. But anyway if you do it now and lose a few, you will pick up a lot more to compensate through your spring advertising once it kicks in in a few weeks time. And you can start fresh with them with your + GST pricing.

    Jason Forrest
    Fair Dinkum Lawn & Garden Care
    Servicing St Clair, Erskine Park, Colyton, South St Marys
    0407 435 642


    fairdinkumlawns.com.au

    facebook page

  8. #23
    Senior Member Chris B's Avatar
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    Default Re: Gst

    Quote Originally Posted by fairdinkum View Post
    Just a thought but why not just add the 10% in full as of RIGHT NOW. You have to pay it RIGHT NOW! Essentially you are saying that 10% of your time away from your family is worth $0 to you. You may (or may not) lose a few clients. But the kind of client that would expect you to break the law just to save a couple of dollars is not the kind of client you should want to be dealing with. But anyway if you do it now and lose a few, you will pick up a lot more to compensate through your spring advertising once it kicks in in a few weeks time. And you can start fresh with them with your + GST pricing.
    haha yeh actually thats what i meant ... i was just tip toeing round the whole GST subject... jack it up the full 10% ... its just business

  9. #24
    Senior Member PaulG's Avatar
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    Default Re: Gst

    I would add the 10% straight-away too. Commercial clients can claim it and for residential lawn customers, if they're average size lawns, the increase will be in the order of $5 to $10 which shouldn't cause a lot of panic attacks.

    Definitely add it for new customers right from the start.

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