Charging Customers

[peregordusmc]

So im haveing a hard time coming up with my own system of charging my customers and thats onearea I never got any teachings in working for other tree companies. I see that its hard to have a set standard because no two jobs are the same. Obviously, thats part of the appeal to doing tree work right? I would like to have a standard way though if its even possible. I have tried a couple different ways but always find a job that that system doesnt work on. Would any of you out there be willing to share their way of charging for the jobs that they do? All input will be greatly appreciated even if you rip on me for not knowing this and running my own tree service. lol.

 

[ducaticorse]

So im haveing a hard time coming up with my own system of charging my customers and thats onearea I never got any teachings in working for other tree companies. I see that its hard to have a set standard because no two jobs are the same. Obviously, thats part of the appeal to doing tree work right? I would like to have a standard way though if its even possible. I have tried a couple different ways but always find a job that that system doesnt work on. Would any of you out there be willing to share their way of charging for the jobs that they do? All input will be greatly appreciated even if you rip on me for not knowing this and running my own tree service. lol.

I asked this question a few months ago, and got some great info from a guy named treemandan. You should PM him, he'll set you straight.

 

[Mikecutstrees]

For simple removals I give a set price. Like a 32" maple removal in a front yard. For pruning or jobs that arn't so cut and dried I charge by the hour. If I realize the customer is going to be out adding stuff and asking for a million favors its definately by the hour. You can get pretty close on a removal price with a little experience. Remember access is the most critical factor. A 20" tree in the backyard that has to be climbed can take longer to remove than a 32" tree next to the front driveway. Good luck..... Mike

 

[tree md]

By the hour. Figure your rate, estimate how much time a job will take you and charge accordingly.

Reasons for charging more than your hourly rate:

Emergency service: Rates usually double.

Are you going to have to bring in extra workers or specialized equipment? Better charge accordingly.

Is the tree particularly hazardous or difficult? Hard to access? Need to be charging for hazard pay.

 

[treemandan]

I asked this question a few months ago, and got some great info from a guy named treemandan. You should PM him, he'll set you straight.

Yup. I guess it don't take much for me to wipe the smile off of anybodies face.

 

[ducaticorse]

From a business perspective, you need to ask yourself how much you need to clear a day (price of job-expenses=profit) It's somewhat of a personal question. What are YOU ok with as a profit number at the end of the day? IE, you have said tree, and it will cost you all said and done $350 and a day to take it down. Say, you have 4 of these scenarios a week. What do you need to make to make it worth your while? A mark up of $100/200/400/1000? You need to find out your overhead, ie operating expenses, insurance, breakdowns, wear and tear etc. You'll find out quick that what was once an acceptable margin of profit, is no longer the case.

 

[peregordusmc]

LOL yea ducati i found your thread you are refering to just now. Thanks for trying to send me into the lions den. lol. Yea i have tried to hourly rate but found when coming on a hazardas tree the reward didnt really outweigh the risk. I like to keep things simple. I dont have any overhead it should be pretty easy to come up with something. I like the hazard pay idea. lol i love hazard pay. Can that be tax free like it is in Iraq? so far youguys have been helpful. Keep em coming please.

 

[ducaticorse]

Yup. I guess it don't take much for me to wipe the smile off of anybodies face.

Actualy Mr Sticks, it was quite amusing. But then again, I'm somewaht of an old soldier that happens to have an ability to type. So I'm able to take all the BS that comes out of your mouth for what it is

 

[tree md]

Sometimes I look at a really bad tree and say to myself "there is noway I am touching this tree unless I get paid X amount of money". If it's a really dead one that the HO has neglected to remove in a timely manner making it uber dangerous for anyone to touch I usually add an aggravation fee. Some of them are so bad I put an astronomical number on them hoping they never call me back... Of course, those are the ones I usually end up getting callbacks on.

 

[ducaticorse]

Sometimes I look at a really bad tree and say to myself "there is noway I am touching this tree unless I get paid X amount of money". If it's a really dead one that the HO has neglected to remove in a timely manner making it uber dangerous for anyone to touch I usually add an aggravation fee. Some of them are so bad I put an astronomical number on them hoping they never call me back... Of course, those are the ones I usually end up getting callbacks on.

Well spoken. But you can't know when you're in over your head unless you've been burnt a cpl times. So this is one of those lessons to be learned once he's already learned the lesson, so to speak.

 

[ducaticorse]

LOL yea ducati i found your thread you are refering to just now. Thanks for trying to send me into the lions den. lol. Yea i have tried to hourly rate but found when coming on a hazardas tree the reward didnt really outweigh the risk. I like to keep things simple. I dont have any overhead it should be pretty easy to come up with something. I like the hazard pay idea. lol i love hazard pay. Can that be tax free like it is in Iraq? so far youguys have been helpful. Keep em coming please.

Hazard pay and tax free only exisists when you're on tour unfortunately my friend.

 

[jefflovstrom]

This thread is getting really long, just give it to me.
Jeff

 

[Blakesmaster]

You also need to consider what type of competition you're up against. 75% of the work I do can be "done" ( not exactly well, but accomplished ) by Joseph Hackster and his trusty Poulan. When you bump into the big hairy's it separates the men from the boys. When your field of competitors goes from 30 to only 3 you better up your price. Generally I'm fine with a G a day but when we come to the stuff most can't handle I push the 2 G mark because I know that there's only 3 other companies locally that would even attempt the job.