Pricing jobs-- flat price versus hourly rate plus materials

southsoundtree

Wondering what you all do for job pricing.

Seems that some trades do time and materials, call out fees, charges for estimates (non-consultations) etc.

Seems that people want flat rates for tree work. What do you find regarding this?
What do you do? All flat rate? Some hourly and some flat rate? All flat rate?

Seems that people always want a flat rate for removals. Easy enough when there is nothing to damage below, just cut and drop. Everything disappears in the end.

Its more variable when there's things not to damage.

Pruning, thinning, widowmakers, etc are harder to estimate.

Yesterday someone wanted to know what it would take in hours to "thin and clean up" a 120-130' Douglas-fir, "you know, to make it safe since its out on its own in the wind."

I told her 4 hours would be the minimum to get something worthwhile done, but a full day for a climber and a groundman would be a max. amount. Her idea of thinning and cleaning up is different from mine.

How do you all negotiate with such customers?

I'm thinking that I should just suggest that she contact many excellent references we have. (She just saw me parked on the street after a bid and asked for an estimate, so she doesn't know me from Adam.)

Eric Frei

Yes, it's very much being between a rock and a hard place isn't it.

I get 2 types of calls, removal ones and consultations.

The removals etc I always quote fixed price, because anything that is very black and white like tree there now, but then gone has little room for argument.

Now with consulting I find converting the call to a job quite hard. If they ring any other trade they get a callout fee plus hourly rate, so I do the same, but many think because it's trees you do it for nothing or saving the planet or some rubbish like that. I explain that I dont know what is going on with the tree till I get there however I do know that I have to go there first to see it, then start to diagnose it, then perhaps climb it, or drill it, or soil sample, or a myriad of other things that I simply cannot tell over the phone.... and written reports of course take time and if you want one of those you pay for it via the hourly rate.

I find the take up rate of it low, seems $88 for a professional qualified tree guy is not on for many but they pay $100/hour for other trades.

CONSUMERS:- Arborists are a profession, see what others charge!

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newguy18

I charge a flat rate for everything,I price according to hazards,targets,what i have to pay my groudy[s]Fuel,etc.I've made the mistake of priceing the clean up of a limb once and miraclousy the limb doubled in length and diameter between job day and quote day.

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old schooler

OutofMytree

I have an hourly rate in mind when I quote work but give a fixed price for the job.For substantial jobs I find it helps the client to digest the price if I give a breakdown of exactly where the money is going. For example we have a job in the pipeline where there is my price + chipper hire + crane hire + cherry picker hire.

I have only ever given 3 quotes where I gave either hourly or daily rate and said I expect this job to take approximately X hours/days but the final price will be determined after completion. I got only 1 of those jobs.

The public perception of skilled labour is based on various things. The customers prior experience, the importance of the job to them, your appearance and their confidence in your ability. The old rules still apply when quoting work.

Turn up on time.

Ask them what they want and why they want it.

Smile.

Use breathmints!

Use a vehicle that is well maintained and preferrably one that has your business name on it.

Write the quote on a proper form.

And most important of all, ask for the work on the spot.

scooter1962

Favourite topic - the fine art of sales.

Two categories -
The Bet
The Investment

The bet is a gamble, where you roll the dice and hope to win - typically you don't really know what is going on in the customers mind or the other agendas at play (ie. I hate my neighbour and want the tree gone).
Like most gambles, you may win, or lose.

The investment is a (somewhat) known quantity - a commercial or known customer who you are happy to invest your time in, an who is most likely provide a return for your time.

As an overview some simple rules for the customer over the phone:

We have a minimum fee of $xxxx.00 - this will provide you with 2 guys for X hours.

Our hourly rate is $xxx.oo per hour.

Remember that you cannot quote what you cannot see - if your dealing with stumps, transplanting, planting or unknown quantities it is best to provide an estimated cost.

In this low paid industry, we cannot afford to lose.