Charging for estimates.

[Gerasimek]

We all know that rising fuel prices are killing us. I know that every tree service in my area gives free estimates. My question is this: Wouldn't we all benefit from charging a small fee?
Here's an example: All tree services in an area agree to charge a uniform fee ($5 or $10) to offset fuel costs ( some of us spend a few hours a day driving around and checking jobs ). The customer gets the $5 back when he or she hires a service and everyone else that bid on the job goes home with $5.
I know this is unlikely to happen as tree services are among the most unorganized groups in the country. (Barbers are more organized than us.)
I just want to hear what you have to say. This should be entertaining.
Thanks.
Gerasimek

 

[gr8scott72]

We all know that rising fuel prices are killing us. I know that every tree service in my area gives free estimates. My question is this: Wouldn't we all benefit from charging a small fee?
Here's an example: All tree services in an area agree to charge a uniform fee ($5 or $10) to offset fuel costs ( some of us spend a few hours a day driving around and checking jobs ). The customer gets the $5 back when he or she hires a service and everyone else that bid on the job goes home with $5.
I know this is unlikely to happen as tree services are among the most unorganized groups in the country. (Barbers are more organized than us.)
I just want to hear what you have to say. This should be entertaining.
Thanks.
Gerasimek

As soon as you got them all to agree to charging a fee, one of them would use that to their advantage and start telling people they are the only ones that give free estimates.

 

[Mitchell]

to true

As soon as you got them all to agree to charging a fee, one of them would use that to their advantage and start telling people they are the only ones that give free estimates.

We have to just build it into the jobs we do get. I do not mind meeting quality folks for free; it does chap me that a lot of folks do not seem to appreciate how much time, energy, loss of family time, free advice and expense go into an estimate.

I recently borrowed a 70 mpg car for a day of estimates and figured it saved me 50 bucks in fuel. If [when] fuel prices keep going up it may pay to buy a little get around car.

 

[Jimmychips]

I've been thinking about charging for estimates and giving the customer their money back if I'm awarded the job. The main reason I still do estimates for free is: how (and when) do you get the $10? Are you going to send an invoice before the estimate goes out? Are you going to ask for the $10 in cash when you go to look at the job? What if they're not home, which is the case in about 50% of my jobs? I, too, don't mind meeting quality people for free, but the tire kickers tend to wreck it for everyone.

 

[reachtreeservi]

I give a free spoken estimate. If you want a written estimate , it's 20.00
If I get the job, I knock the 20.00 off the total.

 

[Husky137]

Figure it into the cost of doing business. If you need to rasie your rates then so be it. What's next a fuel surcharge like UPS or the airlines?

 

[Slvrmple72]

As soon as you got them all to agree to charging a fee, one of them would use that to their advantage and start telling people they are the only ones that give free estimates.

Heck Scott! Thats nothing, I do free treework to undercut my competition. They should be feeling the "pinch" any day now.... yep, any day now.

Seriously though free estimates are the way things are done and it is that first impression a potential customer gets when you talk with them about their tree care needs that is the most important part of growing your business.Just to be sure I was kidding about the free tree work... I will get beer at the very least.:greenchainsaw:

 

[ASD]

in CA. estimates are free it's the law

but we charge for consultations and yes their is a fine line

 

[treeseer]

but we charge for consultations

There ya go. I changed my free estimate policy in 1992 when i got isa certified, and went to paid consultations. The price for those rose gradually until 2004 when i got my bcma. i went up 50% on the price of my consults, but most callers still say go ahead.

Most clients figure you get what you pay for, so any advice given during a free estimate is worth what it costs. Nothing.

If you value your time, charge for it. The plumber does.

 

[John Paul Sanborn]

I think it depends on your work load, if you need the work, keep the estimates free, if you have a backlog, charge for it. It will keep the lowbid shoppers away.

If you want to apply it to the job cost, it will make it look better to the client.

 

[corndogg]

I don't think we can ever charge for estimates because somebody else will always do it for free. I second treeseer. I once trimmed one oak tree after the customer had a forester with a bunch of letters behind his name told him he could for $80. To charge for consultations, one might need to have letters behind their name. I think the real challenge is to get people to take their tree seriously. Like treeseer said the plumber charges for consultation and can because people take water in their home seriously. Why not ten ton trees swinging over their head? They just don't seem to get it. One thing I've done is require to meet people in person. If I'm gonna drive over there the least they can do is be there to talk to me. That way I can do my sales pitch. I fired sevice magic this week! About time! Referal services ad an unnecessary cost to every trade. We should all band together and stop these guys. Paying money to give estimates, now that's insane!

 

[teamtree]

why bother charging 5 or 10 bucks....not worth the time

I assume most companies are building the estimate cost into their overhead.

At the end of the day, the customer pays for the estimate. If not, then you are not calculating your overhead properly.

 

[corndogg]

The idea is to get rid of tire kickers and do only serious bids where tree work will actually occur within a short time. I do all the climbing and the bidding. When you drive all over the place and know that fewer than half of the bids will call you back to even acknowledge your bid the veins in your head start to show. Very frustrating especially with fuel and traffic. It does get built into the overhead but if one can get rid of tire kickers than one can lower overhead. Plus, overhead shmoverhead. Half the time your competing with the hack with an barrowed saw, spikes and snowmobile trailer! With his overhead he thinks $25 an hour is good money!

 

[Dadatwins]

We all know that rising fuel prices are killing us. I know that every tree service in my area gives free estimates. My question is this: Wouldn't we all benefit from charging a small fee?
Here's an example: All tree services in an area agree to charge a uniform fee ($5 or $10) to offset fuel costs ( some of us spend a few hours a day driving around and checking jobs ). The customer gets the $5 back when he or she hires a service and everyone else that bid on the job goes home with $5.
I know this is unlikely to happen as tree services are among the most unorganized groups in the country. (Barbers are more organized than us.)
I just want to hear what you have to say. This should be entertaining.
Thanks.
Gerasimek

Leaf piles are more organized than tree services. If only the tree companies were pricing jobs and not every landscrapers, roofer, general contractor and
I have even seen some painters taking down trees, then charging for an estimate would be a good idea. Customers would then be getting professional advice from a professional and should not be afraid to pay for it. Until a nationwide licensing program, like electritions and plumbers is established, tree service will be the bottom feeders of the contract world. Until then, screen all your calls the best you can, anyone seeking a 'free estimate' is probably just gathering ideas and not really looking for work to be done. I will ask potentials how many other companies have they called and if the list is more than 5, I take a pass. I had one lady told me she called 25 companies out of all the newspapers and yellow pages. Like treeseer I will focus on those seeking an arborist since they have already recognized there is a difference, not flaming those not certified, but I like having the letters after the name and charge accordingly.

 

[tomtrees58]

i do not think its good in this day 5.00 gas just get jobs tom trees

 

[TimberMcPherson]

Charging wont work, and if you were charging to be realistic you would have to charge over $20 to start to start to recoupe costs.

We should be trying to make quoting as cost effective as possible. I choose to do mine by motorbike and get alot of positive comments from clients about it being smart with fuel costs, lack of parking, heavy traffic etc. It saves me alot of time and seems less like work when your able to pull wheelies on the way to the quote.

 

[John464]

no need to charge. if you are pricing work right, the jobs you land should well cover your costs.

 

[OLD CHIPMONK]

Allowances for fuel , depreciation, day labor, insurance ,advertising, equipment repair & office expenses are all contained in a printed form. This form is known as I.R.S. Taxpayer Return . Banks require an E.I.N. number before you can open a Business Checking Account. A Business License or Articles of Incorporation are required filings by I.R.S.. Quarterly returns must be filed . Reputable operators are aware of the benefits afforded. We are not concerned about $ 5 or $ 10 estimate fees.

 

[Mikecutstrees]

Charging wont work, and if you were charging to be realistic you would have to charge over $20 to start to start to recoupe costs.

We should be trying to make quoting as cost effective as possible. I choose to do mine by motorbike and get alot of positive comments from clients about it being smart with fuel costs, lack of parking, heavy traffic etc. It saves me alot of time and seems less like work when your able to pull wheelies on the way to the quote.

I agree just try to keep your costs as low as possible. I'm buying a small Ford Ranger this year to do estimates. Good gas milage helps. Then I try to group my estimates together or do them after a job that is nearby. Right now I borrow the wifes subaru when I can to save fuel. If people want to see my equipment they can go look at my website which will be updated this week. If a job is far away I charge extra which also covers my drive for the estimate. Too far and I will politely explain to them that they are too far away..... Mike

 

[John Paul Sanborn]

If a job is far away I charge extra which also covers my drive for the estimate. Too far and I will politely explain to them that they are too far away..... Mike

I have clients who go this route, tell the prospective client on the phone that they have a minimum to come out to that area, or that they go out on referral work only on a "just do" basis. Set a budget at a dayrate or the like.