Pricing jobs

[anthony h.]

Hello everybody, I am new to doing work on my own. I was wodering if anyone can give my any ideas of how you price the jobs. What factors are involved in pricing tree jobs. I know that every job is different depending on what your doing, trimming or removing. What kind of obstacles your working around plays a major part in it. I've been getting asked to do alot of work lately. I am not sure how to price them. I want to be fair with my costumers along as being fair to myself. I am just looking for someone to steer me in the right direction. Maybe a basic scale of some kind (rigging involved and rigging not involved). If you guys prefere to go buy the hour or by the job. If you wouldn't mind helping any guidance would be appreciated. In your area it might be different than mine, but i'm just looking for a rough idea. Thank you!

 

[Treeman14]

Pricing jobs is very difficult in the beginning, but it will get easier as you gain more experience and make a few mistakes as well. I try to estimate the time it will take to get a job done and then multiply that time by a pre-determined hourly rate. The hourly rate will depend on your overhead, fixed and variable costs, profit, etc. When I started in 1985 with a pickup truck and a few saws, I charged $50 per hour. Now its much more than that. Don't expect to get rich quick in this business. If you're in it for the long haul, you've got to make customer satisfaction your first priority and the money will come later. My philosophy has always been to put most of my money back into the business by buying new equipment, while at the same time developing a strong client base of repeat customers. Good luck to you. You're on the right track by networking with others in the business and asking questions.

 

[John Paul Sanborn]

Like Brett said.

How much do you want for a crew hour?

How much do you need to make per day?

Will the job take all day? will you be able to get a small one in after it to "fill in the day?

If both questions are no then that job needs to be sold as a full day.

Will you need to bring in an extra set of hands to make a 1.3 day job a one day job?

How long is the drag? Had a few "salesmen" screw me here.

How difficult the cleanup?

How far is the dump? How many loads? I've seen guys loose money on jobs because they did not judge this right.

 

[tree md]

pricing jobs is an art. I agree with the other posts but there are other factors that figure in. Like the area your in, the customer's estimated income (some don't agree with this criteria) and what you got to pay out to get the job done. I price them 3 ways, 1st just to drop and leave lay, 2nd cut and stack, and 3rd cut and haul. I figure out how long it is gonna take me to do the job and what I am gonna have to pay out thenI try to make 125.00 an hour for myself. I give senior citizens 10% discount and sometimes if it is low income working people I'll do it cheaper. this rule doesn't always apply. If I have a huge tree that is over a house and I have to do an arial lift I usually charge about 2700.00. I charge 250.00 an hour for emergency service (trees on houses and storm damage)

 

[headache]

damn injuns

Everybody posted so far has been right on. There's one more factor. The fly-by night guys. These guys make this racket a real art. Drive by a guy hanging from a branch with two other guys holding a ladder for him after he cut 2/3rd of the broken branch off and you'll know what I mean.
If these guys are bidding on the same job as me, I can guarantee they're lower than my bid. Don't cave! Give these potential customers an honest, fair bid. If these idiots blow it, people will know. We're not installing cable. If these people want a quality job and a guaranteed outcome, they have to pay for it.

 

[John Paul Sanborn]

Too right Headache, I always wrote a detailed description on the bid. I alway TRIED to get a face to face with the potential client. Then when I picked up the check I would suggest more work for the future.

Demonstrate your knowledge and expertice. Sell yourself as much as the job.

 

[headache]

size

John, are you a big man? I really believe that customers feel safer with big guys, unless they know you. I can't tell you how many times I've lost bids to guys that are wearing overalls and can't weigh under 250 lbs. I've started teaching a guy who's been with me for years how to bid. He's about 6'5 and 265. The customers love him. I know he can hardly climb off the bar stool, but he's a better salesman than me. What do you think?

 

[WillClimb]

headache

..."We're not installing cable. "

actually, sometimes we are installing cable

I know, I'm a smartass.

 

[John Paul Sanborn]

Will! Your suposed to take the Tel and cable off before working!

Headache, I don't think it is the size persay, but that many of us spacialy chalanged people woprk at not seeming like neandrathals. At ifrst they are sorta scared, then when they realize you wouldnt hurt a fly they feel better about it.

The there is the fact that I don't slap anyone for the "You don't need a ladder!" joke

Joe Hash said at the TCI "I saw a guy 8 ft tall with a 20 inch neck four foot shoulders. I knew it had to be you!"

Well im only six foot nine and have a an 18 inch neck.

 

[treeman82]

I am 5'11 and 190 pounds. My customers are comfortable around me. I sometimes am nervous around them. However they all for the most part really like me / think I am a nice guy. So that's all that counts as far as that goes. When it comes to pricing my jobs though I have problems because people see me as a kid who they can take advantage of. I have one guy who I do tree work for several times a year; he tells me to do something, doesn't ask how much. I usually doctor the bill a little bit there, but he gets his money from me, and I get it from him plus some. A good chunk of my tree accounts though pay me a little bit of money, but they make up for it in other ways (storage for equipment / new equipment / fixing equipment / etc) Now a tree guy who I associate with is an interesting guy... he's maybe my height, and about my weight, or possibly smaller. Here is what is so interesting about him... former jobs: commercial fisherman, iron worker, commercial logger, army service in alaska I think? and now commercial tree care. If that guy want's his money he gets it usually. They don't call him "crazy tree man Walter" for nothing

 

[dirtywork]

I am in the Landscape Industry. I started a HOA this month, and tree limb fell over night (Eucalyptus) 13-15' long, 6" in diam. They faxed over the Emergency Response Form and called me on my cell phone.

I was already at my maintenance accounts about 30min drive. luckily it was a slow day and finished quickly. I had to drive home to pick up chainsaw for 15 min. then drove another 15 min. and cut the limb in pieces my worker and I loaded it on the truck and cleaned up. Drove home to unload it onto my dump truck. What should be a Minimum Emergency Response Rate?

Your help is very much appreciated.

 

[treeclimber165]

Probably double your normal hourly rate plus a dump fee for disposal of the debris.
You said you had 30 minutes drive time, count your time from the time you finished your other jobs untill the time you finished unloading the brush into the dump truck. If you normally average $50-$60 per man hour, charge $100-$120 per man hour for that amount of time. PLUS a dump charge, that stuff doesn't disappear by itself!
Emergency calls can be a pain and inconvienent, the customers realize this. Double rate helps offset this. Especially if you have to pull off another job to handle it.

 

[dirtywork]

Thanks treeclimber165

I'll double my hourly rate. They should not have a problem.

 

[John Paul Sanborn]

Always take into concideration the importance of the client to your buisness. If it looks like you are gouging to them, they may not say anything, but they may remember come contract time. If you have never let them know previously that your rates are higher to jump through the hooop...

If it was no great inconveiniance, jack the rate a little then annotate the bill that "normal immidiate responce is $X/mhr, we were gaving a slow day so did not need to charge the full amount. Good customer maintinace.