Thoughts on Minimum Pricing for Small Jobs

climbingmonkey24

climbingmonkey24

Carpal tunnel level member
Location
United States
Sometimes you get jobs that may take 15-20 min...small nothing type jobs.

What are you guys thoughts on having a minimum rate? Does somewhere around $200 sound too much or too little? Just curious what others thoughts are on this.

Recently ran into a scenario where a past client called me back. Last time I worked for him I severely undercharged more than I care to think about.

So even though this is less work, this time around I charged a higher rate, or what I think would be a decent minimum ($200).
 
What equipment does it take to get it done?

How far from shop?

Sounds like too much to me...unless you don't want the job, then go high.

I'd rather keep a customer.
 
I don't do anything for less than $100. Unless I'm already nextdoor working. If I have to drive to give the estimate I'll usually have at least 45 minutes in just the estimate. That's driving to and from plus the time the estimate takes. I can easily have an hour tied up in an estimate and I'm not guaranteed anything. If I have to make 2 trips, $100 isn't very much sometimes. Even if it's just falling a tree and walking away. I factor in my experience, equipment, tools, insurance. I assume all responsibility if something goes wrong. So I charge for that. About 15 years ago I started writing down all the free, charity, cut rate and family deals I was doing. I knew I was loosing money on these jobs but when I added it up at the end of the year it was surprising how many thousands of dollars I was leaving on the table. I would rather have that in my pocket. The bank and utilities don't cut me any slack so I had to stop also.

My $100 minimum is assuming it's just me and no big equipment. If I have to bring equipment and extra help it goes up. Over 25 miles and it goes up too.
 
Just started having a $100 min as now I have the work load that allows me to shave off low-ballers. Part of how you can determine what yours should be is figuring how much of the day is it taking away from. That includes hours on that job, drive time to and from, setup on the next one, shuffling equipment etc.

Next door neighbor to your current one wants a single limb pole-sawed off and brush left: I’d charge less than my min (or nothing) to be nice and perhaps gain a customer.
 
Another part of this, for me, is the love of the job. I generally really enjoy this work and do some for free that I want to. If it is an enjoyable little job close to home, or for a nice return customer that comes into my pricing. I’m pretty bad at the business side of work and tend to be too cheap apparently so take my opinion with a grain of salt. On the otherhand if they are shitty people and have a shitty job than it’s the fuck-it $400.
 
Maybe I'm picturing something different...for example, I planted a tree for a regular client 3 years ago. Time for a quick structural pruning visit. Will take 10-15 minutes standing on the ground. Nothing else to do there. I'll stop by when I'm in the neighborhood. $50-75. No estimate visit before...

But to bring a bucket and 2 other guys...yeah, $200 min sounds very reasonable.
 
We have a $200 per trip minimum, which occasionally causes us to lose a bid, but if we do it’s too small to be worth it - our average project size is probably around $1500, and many are higher, so the little projects aren’t really worth it.

That minimum means a 15 minute removal with stump grinding costs $400; the stump grinder travels by itself, so it bills at the minimum a second time. If we don’t get the job, oh well, at least we aren’t losing money on it. We are in business to make a profit, I’ll sit on the couch at home if I have to work for free!
 
We have a $400 minimum. Bucket truck, 12" chipper, mini skid, and F550 roll to most jobs. Usually me and two crew members. I already have time looking at it. I use the $400 minimum to prequalify new potential clients. If they aren't willing to spent $400 on their trees, they aren't our clientele. Driving across town with all the equipment costs the same weather we are there for 30 minutes of 5 hours. We still usually dump the trucks if they are more than 1/4 full when we get back to our lot as we want a full chip box worth on the next large removal. If you include all the above mentioned time plus the paperwork and book keeping entry time it really ads up even on small jobs. It still takes just as long to go by the bank with a $400 check as it does a $4000 check. Seems like small jobs are where I always hit something with a chainsaw and ruin the chain as well. Got to also look at the opportunity costs. If I'm running around all over the place doing small jobs, am I going to loose out on that big removal that pays well?

Now if I'm next door and the neighbor wants two quick limbs trimmed, I'm not generally going to charge the minimum as almost all that overhead is already covered. Good client needs a little 15 minute something and is willing to wait until I'm in the area, no minimum.
 
Wait..... You still take checks to the bank?

Okay back on topic now: I think that is showing what I mean where it depends on what you are doing and what equipment it takes. With what you described @Fivepoints it doesn't make sense to roll for less than $400. If that is your setup and target market, that is what you have to do.

I do not even do large removals. A lot of small pruning fills a day nicely... Not many are under $200 but I guess I feel like if I am stuck on the mindset of I don't show up at the property for less than $200 (or without big iron in tow) I lose a lot of small clients... Often those small clients turn into big clients. Or their neighbor turns into a big client.

Every operation is different and you need to find the formula that works best for your market, your clientele, your equipment, your employees, etc.
 
I used to do bar gigs as a solo musician/vocalist. Most paid $150 per night for a four hour performance of four, forty-five minute sets. At first it seemed like a cool concept, I mean who doesn't like to walk out of a bar with more money in their pocket than they had when they walked in? In reality though, I had to spend at least an hour gathering up and loading equipment, an hour driving to the venue and unloading gear, another hour assembling the stage rig and doing a sound test, four hours to do the actual gig, and another three hours on the back end before all my stuff was safely put away at my original starting point.

When I realized I was only making $15 an hour for my time (minus wear and tear on my vehicle, instruments and other equipment) I decided it really wasn't a cost-effective use of my life.

I try to use a similar approach to price arboricultural work, so that I actually am profitable and making a decent living. (And can afford to play music where and whenever I feel like it!)

To address another posted concern, when I'm on a production job and a neighbor wants to talk about having a couple branches cut, I politely explain that I'm focused completely on the client I'm presently working for. I give them my card and invite them to call me. This way my client doesn't feel like they've paid the mobilization costs for their neighbor. Always dance with the one who brought you!
 
cerviarborist said:
I used to do bar gigs as a solo musician/vocalist. Most paid $150 per night for a four hour performance of four, forty-five minute sets. At first it seemed like a cool concept, I mean who doesn't like to walk out of a bar with more money in their pocket than they had when they walked in? In reality though, I had to spend at least an hour gathering up and loading equipment, an hour driving to the venue and unloading gear, another hour assembling the stage rig and doing a sound test, four hours to do the actual gig, and another three hours on the back end before all my stuff was safely put away at my original starting point.

When I realized I was only making $15 an hour for my time (minus wear and tear on my vehicle, instruments and other equipment) I decided it really wasn't a cost-effective use of my life.

I try to use a similar approach to price arboricultural work, so that I actually am profitable and making a decent living. (And can afford to play music where and whenever I feel like it!)

To address another posted concern, when I'm on a production job and a neighbor wants to talk about having a couple branches cut, I politely explain that I'm focused completely on the client I'm presently working for. I give them my card and invite them to call me. This way my client doesn't feel like they've paid the mobilization costs for their neighbor. Always dance with the one who brought you!
Click to expand...

If only at the bar you got as many offers to "dance" while on a date...lol. Somehow a climber with a saw in a tree always brings the neighbors out with the "well, since your up there..."
 
Every other service trade occupation has a minimum "service charge" to show up at your house to provide service that you asked for. Why should we be any different. Last summer my AC went out on a saturday when it was about 99 degrees out. My regular guy couldn't come but my neighbor was having his AC compressor replaced and the men were there working. I asked if they could take a minute and look at mine which they did after they called their main office. Turned out that the motor starting capacitor was bad. A 5 minute job and a $5 part cost me $150 even though they were right next door.
 
I look at it like this.
Prepping and packing up my gear to take to the job including fuel, oil , and gas in my truck.
Packing my gear back up and the trip home.
Cleaning my gear, my saws, sharpening the chains I used, etc.
That time has to be accounted for.
Almost every job I bid I end up doing more than I quoted, sometimes because they might ask, most times because I'm anal about my work.
Cleaning up meticulously (property is always cleaner than when I arrived there).
That almost always results in getting me more work.
I work word of mouth, I have never advertised.
I started off with just a few jobs a year and I keep quite busy now.
Can't get to all the jobs I wish I could get too.
 
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climbingmonkey24 said:
Now what are your thoughts on minimum pricing for a repeat customer who may have a small 10 min job or so? Because they are repeat, maybe go under that minimum rate?

Thoughts?
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For us, no change - it still costs the same to send the crew out, and I figure that a repeat customer is already calling with the expectation that they will be paying our rates. If they stop us when we’re next door, and they’ve been a particularly good customer we might just give them a free couple minutes, but if we have to send a crew out they’re paying the same as everyone else.
 
Literally, just 10 minutes? 1 person? In my neighborhood? I'm probably not charging them anything.

This just happened last week - 1/2 mile from my house. A fir tree tipped over and was hanging up on a locust over the house. We don't do removals so I referred them to another company/made arrangements for them to get it down the next morning (he knew of them...had them quote pruning the locust that he hired us to do last year). I threw a rope around it to give it a little extra support. Maybe that was a little more than 10 min if you include the time I spent talking with the other company. I told him no charge. He insisted paying me $60.

Guess who he'll call next time. Guess who he'll tell his neighbors to call. etc... Time well spent in my experience.
 
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