Estimating prices and creating quotes for tree services can be a tricky task, but it doesn’t have to be. There are many factors that need to be considered to ensure that you end up in the green at the end of every job. Here are some tips to make sure your tree service company is accurately estimating jobs, while still giving your customer’s a competitive bid.
Understand the requirements of the job: Before you can accurately estimate the cost of a job, you need to understand what is required. It’s important to get as much information as possible from the client: What kind of tree service do they require? What type of trees are involved? How large are they? Even take into consideration the location of the job and how much fuel it will take to get your crew and equipment there. In addition, knowing how the customer heard about your company can effect your bidding – tree service leads, word of mouth, company promotion, etc. All these factors will make a difference in how much time and resources it will take to complete the job, and can make a difference between leaving you in the green or not.
Research labor costs: Do some research online to find out what an average hourly rate is for experienced tree service professionals in your area. This will help you decide what hourly rate or flat fee you should charge for each job. Knowing the price point for the area you are servicing is how you can ensure that your offering competitive pricing against any competition while still making profit. If you already have an established crew, then calculating the cost to cover their hourly should be simple. Once you have that number you can simply add it to your estimated cost.
Include material costs in your quote: Don’t forget to factor in the cost of any materials that will be necessary for the job, such as rope, protective gear, tree-cutting tools or specialized equipment like a stump grinder or crane truck rental. Establishing relationships with local businesses that offer equipment rentals can help you get the best deals on pricing. Also, do your research ahead of time to figure out the cost of any dump runs that you may need to make. Even small fees on your end will add up and cut into your profit.
Factor in overhead costs: Don’t forget to include costs related to running your business such as insurance, permits, licensing, professional fees, and vehicle maintenance costs (if applicable).
Make sure your quote is transparent: When sending out a quote or estimate make sure that it’s clear and easy to understand so there won’t be any confusion or misunderstanding between you and your customer when the final bill comes. Not only does this ensure that both you and your client are in clear agreement, but the more organized you are, the better review the client is likely to give your business. Referrals are the easiest way to gain new clients!
By following these tips can help ensure that your tree service company is accurately estimating jobs for your clients while staying competitive in your market. Making sure that every job will bring in a profit ahead of time is what will make your business thrive!