how many tree services will the area support

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zsteinmetz

ArboristSite Operative
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I currently do a small amount of tree work on the side. Mostly after work and on weekends. All my business has been word of mouth so far but in order to advertise I need a bucket truck, insurance etc. My question is how many tree services will the area support. There are currently 2 full time and one part time services right now. I live in rural Iowa with the town I live in being 5500 people and there are some bigger neighboring towns. What do you guys think?
 
What do you guys think?
forget the bucket truck and learn how to climb

team up with another climber

one ton dump and chipper

start small as possible

be ligit and pro

make it fun

grow from there
 
I currently climb all my trees. Im a lineman by day so alot of days i climb all day at work too. A bucket truck would be helpful on the tough trees. But your right in starting small and keeping costs down. Where is the best place to advertise?
 
You say the bucket would help on the hard ones. A bucket truck is a great help sometimes, but what about the hard ones that you can't drive to?

Every tree climbed will make you a better climber. Be sure to branch out to roped climbing, not just spikes. A good high tie-in-point will do wonders for getting out to limbs that may be over houses, etc.

If you can get a high tie-in, you can get far out to tip-tie branches, allowing you to lift them toward a high central pulley point, rather than just let them drop or be lowered. This will help a lot for spreading trees over objects.

Don't put much money in. Insurance can be less than you think. Some people have insurance without having a business license. That will at least cover you customers for damage. You may have the tax man after you, but that part is on you.

SEASONAL FLUCTUATIONS. Business will be up and down. Especially with the economy. Start slow. Don't get yourself in to where you have to take jobs that you are not ready to take on due to equipment payments.
 
You say the bucket would help on the hard ones. A bucket truck is a great help sometimes, but what about the hard ones that you can't drive to?

Every tree climbed will make you a better climber. Be sure to branch out to roped climbing, not just spikes. A good high tie-in-point will do wonders for getting out to limbs that may be over houses, etc.

If you can get a high tie-in, you can get far out to tip-tie branches, allowing you to lift them toward a high central pulley point, rather than just let them drop or be lowered. This will help a lot for spreading trees over objects.

Don't put much money in. Insurance can be less than you think. Some people have insurance without having a business license. That will at least cover you customers for damage. You may have the tax man after you, but that part is on you.

SEASONAL FLUCTUATIONS. Business will be up and down. Especially with the economy. Start slow. Don't get yourself in to where you have to take jobs that you are not ready to take on due to equipment payments.
 
I currently do a small amount of tree work on the side. Mostly after work and on weekends. All my business has been word of mouth so far but in order to advertise I need a bucket truck, insurance etc. My question is how many tree services will the area support. There are currently 2 full time and one part time services right now. I live in rural Iowa with the town I live in being 5500 people and there are some bigger neighboring towns. What do you guys think?

"My question is how many tree services will the area support?"

That's an odd question, with all due respect. No matter what you or others may think concerning how many companies your population base may support, just when you commit some bigger bucks to get your business out in front of your potential client base, that's when some other folks will decide to do likewise. Going into business on a larger scale is a crap shoot. You can do everything you think is right and still go out of business in a short while because other, better capitalized companies can go it one better than you. Also, there are always the fly-by-nighters and hacks who further erode your income potential. AOMOF, you are currently doing your part to eat into the income dollars of the established companies in your area. Are you a Certified Arborist? Do you know a great deal about proper tree care? Just as you're doing now, so others will do once you go out and buy your big tree machines.

Good luck!
 
What part of Iowa are you working in? We are in the Cedar Rapids area, open the phone book around here and find two+ pages full of tree services- lots of competition. But we've kept it small (just two of us- both climbers; one ton dump +chipper), and we've found more business than we can keep up with because the customers like the fact that the business owners themselves will be the ones climbing the trees and doing the rigging over their roof.
Start small, and as your customer base grows, and you get faster at the work and more productive, then acquire equipment to match the growth of your company.

Granted- my partner and I are both in college full time at the same time, I would say we would probably invest in a little more aggressively in equipment if we weren't. But the seasonal work is perfect with a school schedule. Sounds like your in a similar boat working another job though.
 
Well it is over saturated here and many lowballers turn
it to **** bidding the way they do. I actually overheard
one competitor say I have to lose money for five years
to get established so I bid cheap to get all the work and
in his add says I will beat anyone's price for tree work!
He is very busy but it should not take him too long to
figure out the error of his ways. Every year four or five
new start ups and the existing ones drop nearly that and
the sad part is; many of the dropping ones actually invested
into their business and bid trees with a profit margin but
were unable to compete with the lowballers and illegal's;
so much for professionalism huh?
 
If you take out a small ad in the weekly paper you'll get plenty of calls, mostly price shoppers, so you'll get stuck doing the hard jobs that the hacks don't know how to do so they overbid them. The most important thing I've found is being "professional". Have your trucks clean and lettered, draw up contracts for the customers, do an efficient and CLEAN job, and make sure you are at the customer's house when you SAY you will be there.
 
Well it is over saturated here and many lowballers turn
it to **** bidding the way they do. I actually overheard
one competitor say I have to lose money for five years
to get established so I bid cheap to get all the work and
in his add says I will beat anyone's price for tree work!
He is very busy but it should not take him too long to
figure out the error of his ways. Every year four or five
new start ups and the existing ones drop nearly that and
the sad part is; many of the dropping ones actually invested
into their business and bid trees with a profit margin but
were unable to compete with the lowballers and illegal's;
so much for professionalism huh?
You speak of circles. Of, not in.
I thought about doing the same thing ( running a ad that says to beat every price) but it was only for a second. Then I realized the repercussions towards the industry.
I am starting to realize maybe I shouldn't worry so much about the industry anymore. The industry is backed by people who do just what you said. This country has gone wal-mart.
It doesn't seem like the people paying for the work care to much either. In fact its endorsed by them. They expect it. They expect dirt filled mexican ground dawgs, cheap prices and a nice smilin clean white face to handle the paperwork and to call the white man's cell phone if they don't feel special enough.
Tree work. What a racket! Who started this crap?:cheers:
 
All very good points guys. Im in Cresco in northeast Iowa arbortec 01. Your not too far away. Talked to one of the full time tree services employees tonight and he said they will beat any other price by $100 on any tree. This doesnt seem right to me. If everyone would stick to there guns of setting a fair price everyone would benefit. Seems like everyone is out to cut one anothers throat.
 
I currently climb all my trees. In a lineman by day so a lot of days i climb all day at work too. A bucket truck would be helpful on the tough trees. But your right in starting small and keeping costs down. Where is the best place to advertise?

poles are not trees big difference tom trees
 
All very good points guys. Im in Cresco in northeast Iowa arbortec 01. Your not too far away. Talked to one of the full time tree services employees tonight and he said they will beat any other price by $100 on any tree. This doesnt seem right to me. If everyone would stick to there guns of setting a fair price everyone would benefit. Seems like everyone is out to cut one anothers throat.

I am as close to an example as you are going to get I suppose. I am from NE Iowa in a town of 5500 people and started a company almost 6 yrs ago with two full time tree companies and a part time company already in our town. Same story. The advantage that you have is that you have another job that will pay you every week. Do tree work every spare minute you have for a year to two years and stick every penny you make back into your company. Live off your other income. Most companies can't afford to put 100% back into the company, however that is the key in my opinion. My thoughts are business is business. Hard work and GOOD WORK coupled with GOOD CLEAN-UP will keep you busy. For you getting started, friends will hire you and they will tell people about you and you will be able to get a good start. You will never be the only tree guy. I am testimonial to that. I have worked tirelessly to keep my prices at rock bottom and keep growing in attempt to push the other ones out. Now I am the biggest tree service in Eastern Iowa. I am proud of the fact that we have successfully infiltraited all five big cities as well as Muscatine and the Quad Cities. The only thing that all the hard work has accomplished is expansion and equipment. But to my surprise the others have not fallen. I was forced after three years to put my prices back where they belong and now I make good money and the other guys appear to be busier than they have been in the past. We also don't secure our 95% sale rate on our bids. You can argue economy however the reality is that in NE Iowa people are super conservative. They want everything for nothing. There is so much work to be done out there. Set your price and go for it. You may not get everything and you never will. Stick to hard work, good work, reliability and good clean-up. Also don't be afraid to drive to a job. In this market area success = travel. 5500 people will not be able to keep you busy. Your first market should be your county.

I sent you a PM. We are only a couple hours from each other. Give me a shout and I would be happy to get together with you and share my two cents.
 
Unfortunately its real easy to start a buisiness falling into the trap of working too cheap. I did it, thankfully not any more - I guess thats what your 20's are for. At some point you realize that if you keep it up all you get is old, and all you have is a bunch of old equipment to show for your prime years. Perhaps some young kid becomes the next top climber in your area, then what when yer all washed up with bad knees or whatever? I guess you can brag about being the man back in the day. I say charge enough so you can buy enough equipment to make it very hard for that punk kid to underbid you. Just my 2 cents.
 
I can see all your points on working cheap to start and get business then adjust accordingly. Its like any trade once your started your started. Your clientel gets built up and your doing good. PTS thanks for the encouragement. Sounds like you know what your doing.
 
It was posted before but to paraphrase, start small, work for clients that will only recommend you or only use you like a realtor that needs trees removed for a sale and of course the ability to pass your name to the new buyers who know nobody else when they move in. Also, if you do have another job, earn what you think is legit for your days work and nevemind what the competition gets. You don't have to become a millionaire overnight but don't kill yourself for the job. And climbing as opposed to a bucket truck is much cheaper. As the signature shows, with this equipment, I've been doing this work primarily on weekends and for at leat the past 3.5 years, I have never been without work. I do have another job but this is growing every year. Keep at it, give the client a good job at a decent rate and they'll remeber you when the big storm comes for the big bucks! :cheers:
 
PTS- you've got good advice, that is exactly the approach we took to getting started. My partner and I were both working other jobs, and pretty much all of the revenue we generated from doing tree work was reinvested into our equipment. We did this for about a year, and then decided to quit our other jobs to give us more time to do tree work. We are both going to school. And full time school, a job, and trying to start a business was too much. School and one job is much easier to balance, the only difficulty is that we can't stick all of our income right back into the business cause we rely on the tree work for income now too. But any guy who wants to start a small business in any industry has to wrestle with these issues, thats life.
We don't necessarily try to keep out prices lower than or as low as everyone else; and we do get low balled every now and then, sometimes more often than we like. We compensate for this by lots of marketing, and doing lots of estimates so that we are putting out more bids, so that yes we get low balled sometimes, but still have plenty of sales. By taking this approach we have still been able to secure a steady work flow. We've always got jobs coming in just as fast as we can chew through them, and with this approach each job we do is generating more income for us than if we were simply trying to low ball everyone else though.
 

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