Paid Estimates

A guy I work with who owns his own business is scared to death of loosing a bid. He will do anything to get the job and keep the customer. Even if it means lowering his price and working for almost nothing. He cant stand to loose one. I don't want every job. I used to try to get them all but I was getting nuisance jobs and tight wads who always wanted extra work for free. And this was after I had already cut my throat trying to get the job. I look for a way to get rid of those customers over the phone so I don't have to waste time on them. Get quality customers and you'll work less and make more at the end of the year.
 
I don't know what that is.... Maybe....
It’s also known as Professional Liability insurance. From what my insurance agent tells me, unless I am operating as a consulting arborist, I should not need it. I asked that question a few months ago, as I am frequently asked for my “professional opinion” on trees. As I am not a consulting arborist, if I find a tree that is questionable, I recommend the homeowner speak with one, and hand off a name for them to call.
 
You can also flip the telescope and be glad that the tire kickers show themselves to the door without using up your valuable time. I've been doing this for 12 years using the same vehicle, which currently has $160k original miles. Because I don't burn gas and waste time talking to people when I'm the only one with skin in the game.
I will reiterate that I like all and agree with all the things you are saying. My question was how you explain this to people without losing the good potential clients. The tire kickers will be gone immediately. Good. What about the good clients? You must have to explain it every time you answer the phone. I wonder, literally, how a good conversation goes?
 
This is getting tedious to the point that I'm beginning to want a business development consultation fee for participating in this thread ;-) . If you don't know and can't articulate what you bring to the table in credentials, expertise and a history of successful outcomes, I'd suggest you take a personal and mental inventory of those items, and determine whether they're worth money to people who don't have them.
 
A guy I work with who owns his own business is scared to death of loosing a bid. He will do anything to get the job and keep the customer. Even if it means lowering his price and working for almost nothing. He cant stand to loose one. I don't want every job. I used to try to get them all but I was getting nuisance jobs and tight wads who always wanted extra work for free. And this was after I had already cut my throat trying to get the job. I look for a way to get rid of those customers over the phone so I don't have to waste time on them. Get quality customers and you'll work less and make more at the end of the year.

Every job I do is word of mouth. Guess what type of people pain in the ass and penny pincher people know....and guess who they brag to.

Conversely guess who people who are willing to "pay more to get the best"people know.
 
By the way, I didn't always think that way. I used to think, 'tree work doesn't have to cost that much" when I heard some companies bids on the same job I did.

You can do good work for as little as possible, or you can do good work and leave nothing extra on the table. Either is fine, and both are always being done.

I tell anyone talking in that direction multiple ways to get work done cheaper than me.
 
I will reiterate that I like all and agree with all the things you are saying. My question was how you explain this to people without losing the good potential clients. The tire kickers will be gone immediately. Good. What about the good clients? You must have to explain it every time you answer the phone. I wonder, literally, how a good conversation goes?
Personal experience here... Estimates vs. Consultations. I can tell on the phone in two minutes and two questions whether they want an estimate (that should take 30 mins or less) or an hour & half (or 2) consultation. Right now I do estimates for free, because I'm assessing the tree/s, giving a price, and leaving (may do some explaining, but little.) I DO charge for consultations, however, because I'm not just assessing and writing a price. I'm looking over everything, they have questions about this & that, I'm explaining soil compaction and pore space as well as branch structure and crown raising, yada yada yada... They are benefitting from my time, years of experience, ISA Certified, Pesticide Certified, and such, and that stuff doesn't come free. I invest a lot of time and money into my knowledge base, and I charge to render that kind of expertise. If they don't like it, they can go get 'Joe Blow Bucket Hacks' to chop on their tree. If they want an artist who's passionate about the craft, then they're going to pay gallery auction prices...
To the question about losing good potential clients: If you conduct yourself professionally, KNOW what you're talking about, and can communicate effectively to them that you know what you're talking about, you have a big advantage immediately. Be honest and up front on the phone. If they are "good" clients, they'll listen and proceed, despite your costs. If they're cheapskates, the prices will send them running. Don't chase them. People call me because they're looking for someone knowledgeable about trees. 75% of my calls are referrals, even from University Extension offices. The ones that are looking for the cheapest bidder don't call me, and I'm ok with that.
Point is: "good" clients are willing to pay good money for good work.

just my $0.02
 
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Personal experience here... Estimates vs. Consultations. I can tell on the phone in two minutes and two questions whether they want an estimate (that should take 30 mins or less) or an hour & half (or 2) consultation. Right now I do estimates for free, because I'm assessing the tree/s, giving a price, and leaving (may do some explaining, but little.) I DO charge for consultations, however, because I'm not just assessing and writing a price. I'm looking over everything, they have questions about this & that, I'm explaining soil compaction and pore space as well as branch structure and crown raising, yada yada yada... They are benefitting from my time, years of experience, ISA Certified, Pesticide Certified, and such, and that stuff doesn't come free. I invest a lot of time and money into my knowledge base, and I charge to render that kind of expertise. If they don't like it, they can go get 'Joe Blow Bucket Hacks' to chop on their tree. If they want an artist who's passionate about the craft, then they're going to pay gallery auction prices...
To the question about losing good potential clients: If you conduct yourself professionally, KNOW what you're talking about, and can communicate effectively to them that you know what you're talking about, you have a big advantage immediately. Be honest and up front on the phone. If they are "good" clients, they'll listen and proceed, despite your costs. If they're cheapskates, the prices will send them running. Don't chase them. People call me because they're looking for someone knowledgeable about trees. 75% of my calls are referrals, even from University Extension offices. The ones that are looking for the cheapest bidder don't call me, and I'm ok with that.
Point is: "good" clients are willing to pay good money for good work.
That is exactly how I see it. I have been charging for consults for the last 2 years. I don't do estimates unless it is to give a price to remove a tree. They ask any questions and they know it is a consult with a fee. They are told that when they call our office. Since I started charging it elevated our company status as the ones to call and we are even busier than before and at higher profit margins.

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