Breaking into a new market/service area

[Leafguy]

If you had a choice on a new area to market, which would it be.

1) Small town, population 20,000, rapidly growing, little to no professional tree service presence. Might be hard due to being an outsider.

or

2) Major metro area, tons of tree companies, but lots of homes with a more mature urban forest.

Where would marketing money be better spent. Looking to build a long lasting brand in an area

 

[oceans]

BOTH!!!

 

[Tree_Frog]

What is the demographic of the small town. You will have to take in race, religion, finances, green movements, expendable incomes, etc. Once you have established the town as financially sound then word of mouth is your best bet if it is a tight community.

Metro is easy, pick a neighbor hood and start there.

 

[limbchop]

I've heard that someone did some research and it should be one arborist per 50,000 pop. I'm pulling $60-80,000 out of a market with 244 permanent residents and 2,000 seasonal properties. Not rich people either, actually farmer cheap is the rule. No shortage of bucket bunny vultures circleing. See their ads don't see them. You got to fight for your right to charge more when your the neighbor and main service provider.

When I arrived everyone wanted to know how to spell the word arborist, or is that arbourist. There's more markets within a half hour drive but I've been focusing on what's close. To hell with driving for work and having more crews and more stress.

I don't understand how bigger is better with tree care. What if fuel prices doubled? It shouldn't be all about the size of your truck. I want a bigger one too but it would get in the way for dancing.

 

[Leafguy]

Not looking to get huge with multiple crews or a fleet of equipment to fuel or fix. Just looking to find a bit more income for the biz and my two staff. Cost money to make money though. Word of mouth is good, but you need to start the word somehow.

Limbchop- Impressive pulling that revenue from a population of that size. I agree with the small company strategy.

Tree Frog- Good questions. It's a big mix of all. I have some friends that live there and have asked similar questions.

Oceans- Both is an option but for now concentrating on one will make it easier on the wallet. Plus gas is a big concern. The metro is a little further and in the opposite direction.

 

[TheArborMan]

I started a business in Metro Detroit. I think it would have been much harder for me to get where I am now, as fast as I have, in a smaller market. My choice would be large market, hands down. There are guys that operate here with crap customer service, crappy performance. It's easy pickins if you're honest and hardworking.

 

[NickfromWI]

I would go for the bigger market. I'm basing this on my small town experience at home where no one knew what an arborist was. In LA, enough people will ONLY hire arborists to cut their trees.

 

[Leafguy]

I worry about dropping a small chunk of change in a big market and being lost in the sea of other companies. I guess that's one of the risk of business and marketing.

 

[NickfromWI]

If you are more or less the same as the other guys, then you will likely get lost in the sea. If you can set yourself apart and above the other crews, then you'll have the whole market to your self!

 

[AspenArbo]

Nick hit the nail on the head. Your decision will depend on the type of services and the quality of services you will offer. If you have a certain set of skills that can set you apart from the 'average' arborist, then the larger market will fair the best. But if you can only offer the basics (average pro. Arborist), then the smaller market will be best.
I'm in a very small market. If I could offer all the things that I do offer now in a large metro market I'm sure I could have quite the large business, but only because I can offer consulting and other advanced care options. Currently I offer as much as I can and as a one crew (sometimes just me on things like tree planting or ground pruning jobs) I can get by really well with the small market. I'm the only Certified arborist within a large area and just offering the basics in professional services I do OK. If you show up in the small market and do all the professional things like clean trucks, good logo and advertising, and great customer service, it will establish, but it will probably take many years. Especially if its here in MN. (Listen to Lake Wobegon on prairie home companion, you'll get why).
Good luck