Pricing questions

[flyingsquirrel25]

I believe that was Mangoes. He's the master of analysis. But, I would concur. There are 260 weekdays in the year but once holidays, vacation and weather days are taken into account 180 would be a realistic number to work with.
By using idealized numbers such as this to come up with a man-hour rate provides you a target to achieve. You can your quoting as you build up your own dataset to work with.

And the important part... anything above 180 is a huge bonus, because most of your bills are paid by that 180. If you get 200 in, that's 20 days of almost pure profit (minus the expenses to operate for those days).

I keep up with my metrics on a weekly/monthly basis. I know I need "x" per week and 3 days of work accomplishes that. When I get 4 and 5 in the spring, summer and fall the weeks start to look really good. Those extra days are where I look to grow the business. The more extra days the faster I grow.

 

[treehumper]

I know I need "x" per week and 3 days of work accomplishes that.

That is how to structure your pricing! Instead of just making a living, you're building a business! Good on ya!!

 

[flyingsquirrel25]

That is how to structure your pricing! Instead of just making a living, you're building a business! Good on ya!!

Thanks. It's more than just pricing to me. Its being able to have schedule flexibility, weather flexibility, equipment maintenance time and flexibility for the family. In addition it gives me days for estimates, invoicing and the all important recovery.
The other cool thing it does is allows me flexibility in equipment purchasing. I understand what debt the business can bare for "x" a week, if I need to I can adjust my work schedule (I.e 4 or 5 days a week) to accommodate larger purchasing. Of course as long as the work is available.

 

[climbingmonkey24]

I look at the tree, then I look at what car is parked in the garage, then I tell them a high price. It's very rewarding!!

This doesn't always work though lol. Sometimes the people that have all the money want the cheapest service.

 

[oldoakman]

This doesn't always work though lol. Sometimes the people that have all the money want the cheapest service.

That's why they have all the money.

 

[climbhightree]

Why?

Mostly cause they don't have the overhead I have. Just bothers me, can't really explain it.

I'd almost rather them be cheaper (and driving down the tree pricing) than to charge more than they are really worth.

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[climbhightree]

I wouldn't let it bother you, tree work is like art, it's worth as much (or little) as someone is willing to pay.

I've noticed that other industries have more or less fixed rates, mechanics, drywall hangers, roofers, etc etc. Whereas completely the opposite in trees ( at least where I live) Some guys go for 50 an hour or less, some try and get 200, all types of different abilities, equipment etc. It's all over the place!


Everyone values their time differently, so there's that to consider.

See the problem with your stated scenarios is that they all are also selling a product (they mark up their parts/materials). On top of that, it is all based on known quantities and time based on measurements etc...for the most part.

Our work is strictly a service based on a educated guess while looking at the tree from the ground. Hence why our prices are all over the place. I understand what may take me a day, may take a smaller company two days, or a bigger company a half day. All depends on the time and number of guys/equipment you throw at it.

Just don't think a guy with a pickup and chainsaw (no insurance or comp) should be charging the same rate as me...just because it is the "going" rate for the tree.

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[climbhightree]

Exactly, you know this but I'll say it anyway. That is why you need to sell yourself, point out all of the great things about your biz and after that it's up to the market. If pickup truck guys with no insurance are getting the same rates, just ditch your coverage and chip truck and get to work! (Joking, of course...)

Personally I like how there are so many flavors to choose from in my market, like baskin robbins. I feel like there is a good fit for every client. Many times I am happy to encourage a homeowner to contact one of my competitors.

We are booked out 4-6 months in advanced...been that way for over a year now. Selling yourself is very important.

We typically do not recommend another company specifically (cause we don't know exactly how they operate...insurance wise). But we do point them to trees are good dot com (find an Arborist).

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