Looking for ways to reduce quote time

[Reach]

It helps for sure, knowing the overhead, insurance, workman's comp, etc. But what I don't understand is how it impacts the cost of the job and why two companies can be 300 bucks apart on the same job carrying the same type of insurance. Most folks may choose the least cost, but I'm curious what value the $300 provides?

The difference is often specific to the company. While there are many companies who seem to use the “six pack and a dart board” quoting method, the legitimate services actually know what their costs are, and the time necessary for them to do a particular job.

In this area, I know when I walk up to a tree which of the bigger players will be the lowest cost for that project. That is because each of us has a specialty, an area in which we are most efficient.

There’s one company that is cheaper than everyone else for easy trees, where they can be dropped and processed minimally before sending huge sections through giant chippers. Their hourly rates are astronomical, but they can get a tremendous amount of work done in that hour.

On the flip side, we are generally lower in cost on more technical projects, where the access is limited, because we use skilled climbers and rigging, and creativity, to remove trees with a smaller crew. It takes us the same amount of time for that tree that the above company would take, but our hourly rates are lower since our equipment is smaller, so we can remove that tree for a much lower cost.

Hopefully that sheds a little light on the subject?

 

[rope-a-dope]

I work for a company that has an accounting dept. that has a pie chart break down of our hourly rate. Customers dont see that, but they understand after some explanation, they have to pay for the truck and chipper too. Plus ins. Plus fuel. Plus everything.
I'm guessing you're after some kind of quick calculator? It's not easy because there are 100s of variables that can make up that difference of $300. Usually it is a function of time. Hours x men x rate= cost.
The most accurate estimates come from someone that can visualize the whole process, start to finish, with intimate knowledge of how efficient the workers are.

For me, on the production side of things, $300 is a little less than what we should get in an hour with 3 workers on site. So if I can beat the estimated job time, we win.
For customers that understand the hourly rate, the price transparency comes into view when they realize all your stuff is nice and new, and the crew is busting out a big list of work in half a day.

 

[VenasNursery]

The difference is often specific to the company. While there are many companies who seem to use the “six pack and a dart board” quoting method, the legitimate services actually know what their costs are, and the time necessary for them to do a particular job.

In this area, I know when I walk up to a tree which of the bigger players will be the lowest cost for that project. That is because each of us has a specialty, an area in which we are most efficient.

There’s one company that is cheaper than everyone else for easy trees, where they can be dropped and processed minimally before sending huge sections through giant chippers. Their hourly rates are astronomical, but they can get a tremendous amount of work done in that hour.

On the flip side, we are generally lower in cost on more technical projects, where the access is limited, because we use skilled climbers and rigging, and creativity, to remove trees with a smaller crew. It takes us the same amount of time for that tree that the above company would take, but our hourly rates are lower since our equipment is smaller, so we can remove that tree for a much lower cost.

Hopefully that sheds a little light on the subject?

Well put
Pretty much the same around here

 

[farleyjg]

That’s tough, because 3 different arborists might approach a job 3 different ways. $300 might be finding a dump site vs having one at the shop. It might be how many trucks will be needed to transport the right equipment. Out of what is usually over $1k, it would seem to me that $300 is trivial in the face of trust. If you trust a company based on interaction and research, would you go against your gut to save a little?

Maybe, maybe not.

If I'm only starting with a single company and if the price feels expensive w/o any justification/ explanation, I'm going to get another quote. Simply because I feel like I'm being taken advantage of. The price didn't match what was in my head, and there's no reason given why my initial assumptions were incorrect.

If that second quote comes in $300 bucks less, it justifies my gut feeling. If I'm comfortable with the person I'm dealing with, probably would choose that lesser cost. If I didn't feel good about the person I'm dealing with... may seek a 3rd quote or go back to the original.

My point in this is: Had the first option had more trust out of the gate regarding price / justify their price position... I probably don't look for a 2nd quote and commit to the first company. It doesn't have to be super intricate and detailed... a little goes a long way. Just my 2 cents. That's all.

I really appreciate the thoughts on this topic.

 

[farleyjg]

The difference is often specific to the company. While there are many companies who seem to use the “six pack and a dart board” quoting method, the legitimate services actually know what their costs are, and the time necessary for them to do a particular job.

In this area, I know when I walk up to a tree which of the bigger players will be the lowest cost for that project. That is because each of us has a specialty, an area in which we are most efficient.

There’s one company that is cheaper than everyone else for easy trees, where they can be dropped and processed minimally before sending huge sections through giant chippers. Their hourly rates are astronomical, but they can get a tremendous amount of work done in that hour.

On the flip side, we are generally lower in cost on more technical projects, where the access is limited, because we use skilled climbers and rigging, and creativity, to remove trees with a smaller crew. It takes us the same amount of time for that tree that the above company would take, but our hourly rates are lower since our equipment is smaller, so we can remove that tree for a much lower cost.

Hopefully that sheds a little light on the subject?

It does.... thank you for your thoughts. Do you guys target more technical jobs?

 

[ppsavage]

sorry if you wrote this earlier and I missed it but, is this idea for tree removal only?

 

[farleyjg]

I work for a company that has an accounting dept. that has a pie chart break down of our hourly rate. Customers dont see that, but they understand after some explanation, they have to pay for the truck and chipper too. Plus ins. Plus fuel. Plus everything.
I'm guessing you're after some kind of quick calculator? It's not easy because there are 100s of variables that can make up that difference of $300. Usually it is a function of time. Hours x men x rate= cost.
The most accurate estimates come from someone that can visualize the whole process, start to finish, with intimate knowledge of how efficient the workers are.

For me, on the production side of things, $300 is a little less than what we should get in an hour with 3 workers on site. So if I can beat the estimated job time, we win.
For customers that understand the hourly rate, the price transparency comes into view when they realize all your stuff is nice and new, and the crew is busting out a big list of work in half a day.

That makes sense for sure... Thanks for sharing your thoughts.

 

[farleyjg]

sorry if you wrote this earlier and I missed it but, is this idea for tree removal only?

At this point, wide open to tree removal, trimming, lot clearing... but based on the feedback, not sure how feasible it is. Actually maybe more feasible as a lead magnet for an advertisement or something of that nature... some sort of non-binding ballpark price to qualify potential customers. Where we're only taking in the critical few factors that drive 80% of the cost to provide a non-binding estimate immediately... with the option to schedule an onsite visit.

 

[ppsavage]

My guess is that would do more harm than good, if you're in a tight market at least. If you're getting flooded with calls it might save you some time though. Keep us posted.

 

[farleyjg]

My guess is that would do more harm than good, if you're in a tight market at least. If you're getting flooded with calls it might save you some time though. Keep us posted.

Could be tailored to be more aggressive or not depending on the company. Could be a range as well. Have more questions than answers myself at this point.

I also could be trying to improve something that doesn't need any improvement. That's what I'm trying to iron out . My gut says there's something there, but my gut has been wrong before!

 

[ppsavage]

could be something too it but I think very high volume would be essential

 

[farleyjg]

Thanks everyone for the time you guys have put into my questions Really, really appreciate it.

I think my next step is to spend some time with an owner here and learn the more intricate details on how to quote jobs. I already have an offer on the table to do that, so I think I'm going to take them up on it.

We'll see where it goes from there.

 

[evo]

Could try hacking up a lung once you reach your self imposed limit. Just be sure to shake hands first

 

[Crimsonking]

Maybe, maybe not.

If I'm only starting with a single company and if the price feels expensive w/o any justification/ explanation, I'm going to get another quote. Simply because I feel like I'm being taken advantage of. The price didn't match what was in my head, and there's no reason given why my initial assumptions were incorrect.

If that second quote comes in $300 bucks less, it justifies my gut feeling. If I'm comfortable with the person I'm dealing with, probably would choose that lesser cost. If I didn't feel good about the person I'm dealing with... may seek a 3rd quote or go back to the original.

My point in this is: Had the first option had more trust out of the gate regarding price / justify their price position... I probably don't look for a 2nd quote and commit to the first company. It doesn't have to be super intricate and detailed... a little goes a long way. Just my 2 cents. That's all.

I really appreciate the thoughts on this topic.

To quote myself here with emphasis added- If you trust a company based on interaction and research, would you go against your gut to save a little? Your scenario defended what I said.

 

[Reach]

It does.... thank you for your thoughts. Do you guys target more technical jobs?

Yes. We will take on anything, but we are climber based, and specialize in large and limited-access trees - trees that our bucket truck based competitors cannot access. We do quite a bit of work with cranes, but even more skilled cutting and technical rigging.

 

[climbhightree]

Maybe, maybe not.

If I'm only starting with a single company and if the price feels expensive w/o any justification/ explanation, I'm going to get another quote. Simply because I feel like I'm being taken advantage of. The price didn't match what was in my head, and there's no reason given why my initial assumptions were incorrect.

If that second quote comes in $300 bucks less, it justifies my gut feeling. If I'm comfortable with the person I'm dealing with, probably would choose that lesser cost. If I didn't feel good about the person I'm dealing with... may seek a 3rd quote or go back to the original.

My point in this is: Had the first option had more trust out of the gate regarding price / justify their price position... I probably don't look for a 2nd quote and commit to the first company. It doesn't have to be super intricate and detailed... a little goes a long way. Just my 2 cents. That's all.

I really appreciate the thoughts on this topic.

Removing or trimming a tree is not like fixing a known problem on a car. Most mechanics know exactly how long it will take to replace a part in a car. Doing a tree is really a estimation on the time it will take, usually based on experience...but every tree is different (even of the same species).

300 dollars sounds like a lot, but in reality is quite trival. For some companies that could be the difference of 1 hour of work (or less depending on the number of guys/equipment). For me that is around 3 man hours of time, or 1.5 hours for two guys (my normal crew). If my crane is on the jobsite, that is slightly less than a hour of time.

A hour is pretty quickly used up in tree work too. Even really small jobs, a 2 hour minimum is best till you get there set up, do the work and clean up well.

 

[OasisTree]

This is an interesting thread...For those of you that have taken the TRAQ course, you will be familiar with the form that they use. It is a series of questions that guide you to a risk rating.

I was thinking after taking that course that something like that could be created for bids! A series of yes and no questions as to the complexity of the job, distance to the job, equipment needed, manhours, and a price rating on each answer, to get to the ballpark bid amount.

I have not pursued this or tried to create anything like this, but it does interest me.

Also, I have found that good client communication is huge for a successful bid.

 

[OasisTree]

We itemize everything on our quote for transparency so there are less questions...Then those line items in turn are used as a work order for my crew. Seems to work well.

 

[Reach]

We itemize everything on our quote for transparency so there are less questions...Then those line items in turn are used as a work order for my crew. Seems to work well.

We do the same thing, and it works well for us also.

 

[treeservice-omaha]

We hesitate to give out quote or pricing info over the phone but find it very hard to compete without some sort of cost measure for the caller. So we'll ball park and request an opportunity to have a look at the problem they want help with. Once we can see what were dealing with then we'll itemize everything on the order. Makes for more clearly understood job by the customer.

Bob

Tree Service Omaha
Tree Trimming Omaha
Tree Removal Omaha