Thoughts on Minimum Pricing for Small Jobs

[VenasNursery]

I have no problem doing small jobs for $40-$100 ... always nice to help people out. Easy jobs aren't always easy for others.

We roll out with 5 guys
500k worth of equipment
We shoot for $2400 a day
Anything under $1600 a day I’m not making money
So travel time and unloading we’re down to 6 hrs of work time
$300 barely cuts it for me

 

[VenasNursery]

I have no problem doing small jobs for $40-$100 ... always nice to help people out. Easy jobs aren't always easy for others.

$40 barely covers the crews lunch lol

 

[flushcut]

$300 minimum
Add a small stump additional $100

just bid a 3” Bradford Pear 10’ $300 for the tree $100 for the stump
Only doing the stump for $100 because we’re already going there
A stump only would be a $200 minimum

2hundo for a stump! I wish I could get a min like that for stumps. I am at $75 24" or less double for clean up and I do not do dirt or seed but I charge $300 an hour min for larger stump gigs. Not a real money maker but there are enough fly by nights that keep the price down just grinding stumps. I grind stumps as part of my service when I remove the tree.

 

[VenasNursery]

2hundo for a stump! I wish I could get a min like that for stumps. I am at $75 24" or less double for clean up and I do not do dirt or seed but I charge $300 an hour min for larger stump gigs. Not a real money maker but there are enough fly by nights that keep the price down just grinding stumps. I grind stumps as part of my service when I remove the tree.

60k stumper
60k truck
5-7k trailer
If you don’t have more than 2 jobs it’s not worth it at $200 each

 

[ATH]

It is all about setup. If you have to pay for that much machinery, you can't afford a quick $75.

@VenasNursery do you have 1 or 2 crew members that you could periodically send to those quick things? I've made a lot of good contacts being willing to do those, and we've kept existing clients happy. It might even be "we'll send a guy or gal over at the end of the day one day next week...can someone call you on short notice?". Then when Job 1 for the day is just about wrapped up, they take off in a pickup and go make a new friend.

 

[VenasNursery]

It is all about setup. If you have to pay for that much machinery, you can't afford a quick $75.

@VenasNursery do you have 1 or 2 crew members that you could periodically send to those quick things? I've made a lot of good contacts being willing to do those, and we've kept existing clients happy. It might even be "we'll send a guy or gal over at the end of the day one day next week...can someone call you on short notice?". Then when Job 1 for the day is just about wrapped up, they take off in a pickup and go make a new friend.

We don’t usually have extra crew at all but if your next door to our job and we have time (usually don’t our scheduling is pretty on) I will do a 5 minute thing for free
And the 90% of them schedule a free estimate
Also will throw a $100 add on but only if we have time

 

[flushcut]

It is all about setup. If you have to pay for that much machinery, you can't afford a quick $75.

This is correct but I don't leave the shop for just one stump. One huge $1000.00 stump sure. But in general I will go a week or so with removals and come back for the stumps when I have several of them to do. I was just saying that "just" stump grinding is a real tight market with all the fly by nights keeping the price low.

 

[VenasNursery]

This is correct but I don't leave the shop for just one stump. One huge $1000.00 stump sure. But in general I will go a week or so with removals and come back for the stumps when I have several of them to do. I was just saying that "just" stump grinding is a real tight market with all the fly by nights keeping the price low.

We do our stumps as we go
I can have 95% of stumps finished before clean up and loading up is finished
Most of our jobs the customer is home
Walk through
Paid
Licking fingers (lol)
Rearview mirror

I don’t do stump only jobs with a crew
After work I normally do bids but I will schedule stumps instead and run solo

I don’t like doing stumps
$400 2 jobs no labor 2 hours of my own time
Bring it

 

[burtonbc1400]

2 hour minimum 100/climber=200
200/2climbers chipper.=400
Also depends on the season/how much workin have. also distance.
bidding can be better, can make 300 in 20 min just drop it. Could charge more sometimes but it feels greasy.

 

[Marshy]

My minimums are $150-300 depending on equipment used.

This ^
I have a tiny operation but still tell people my minimum is $200 for a tree that can be walked up to, cut and walk away. Its price of admission really.

I recently did a cut and walk for a guy that was $600. It was a dirty rotton SOB though. It was 3ft on the stump, had a wound from stump to crown 6" wide on both sided of the tree 180 degrees apart. I had to pretension a tag line to the crown in case my holding wood let go early and I ratchet strapped the trunk (x2) at chest height to keep it together. It was probably 1-2 hours total work but on a tree like that its not a minimum skill set type work. I spent an extra 15 minutes or so bucking the top off so that it was safe for whoever was going to cut the firewood. He was super happy I gave him that little bit of extra time and I was happy I didnt leave a hazzard for the next guy that trys to cut it up. I would charge less than my minimum if it was a 3-6" pear tree and only 15 minutes away though. Just depends on the situation.

 

[Helmstein]

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.

You should try online banking.. I haven't been to the Bank to deposited a check in over 6 months unless it's over $5,000 then you have to go in and deposit it.

 

[ATH]

...or have to go if they give you a money order instead of a regular check. Mobile deposit doesn't work for those and neither does the ATM. I have to actually get there when the bank is open. 1 client....every year we treat trees for them and get a money order every year. Some people think they are doing me a favor paying in cash instead of a check. Oh man, now I have to go to the bank. Yeah...I'm probably spoiled by online banking if those are my biggest complaints!

 

[climbingmonkey24]

I looked at a storm damage job this morning, large pieces of branch that broke off with some decent sized wood (too big to chip) and quoted $450 which I thought for storm work is reasonable. Then the guy replied why is it so expensive If it’s on the ground already and I wonder whether if he hires me I should take $50 off or something.

I worry about undercharging and then if I charge higher I wonder if I’m overcharging. I’ve seen a lot of companies that for a large branch etc. that falls they’ll charge as much as $600 to clean it up.

Do you all change your minimum / pricing strategy for storm cleanups? What about travel time?

 

[Birdyman88]

I looked at a storm damage job this morning, large pieces of branch that broke off with some decent sized wood (too big to chip) and quoted $450 which I thought for storm work is reasonable. Then the guy replied why is it so expensive If it’s on the ground already and I wonder whether if he hires me I should take $50 off or something.

I worry about undercharging and then if I charge higher I wonder if I’m overcharging. I’ve seen a lot of companies that for a large branch etc. that falls they’ll charge as much as $600 to clean it up.

Do you all change your minimum / pricing strategy for storm cleanups? What about travel time?

Price it the way you see it, for your business. If $450 is what your pricing model dictates for your business, and it is in normal range for other crews similar to yours, then that's what it is. Past that, you're in complicated territory trying to figure out whether cutting that guy a $50 break is going to help or hurt you long term. And if you're a small operator comparing your pricing to the large guys, then you're in REALLY complicated territory. In my experience, relationships with the right customers are worth way more than $50 sometimes. There are some customers out there that just can't sleep at night if they don't talk you down a few bucks - it's just they're nature - and they can end up being one of you most loyal customers. Then there are others who just look at you like you're some sort of peasant and surprised you're working for anything other than a meal. Which one would you work a deal with?

EDIT: My local small engine dealer, which is always busy, has a retail price. But if they know you, you can get them to knock up to 10% off on larger purchases (even Stihl). And if you ask for the cash discount, they'll knock another 4% off. They don't advertise this though. They're not hurting for business either.

 

[climbingmonkey24]

One thing I have noticed and maybe others can chime in here, is that some customers that are foreign, strong accent etc. that might not be from around here seem to want you to work for low pay. And they tend to have big houses. I had one once who told me that we needed to establish some sort of hourly rate because he didn’t want to pay $200 for me to trim a small tree and shrub. Almost as if you’re looked at as just a laborer or something.

 

[Birdyman88]

One thing I have noticed and maybe others can chime in here, is that some customers that are foreign, strong accent etc. that might not be from around here seem to want you to work for low pay. And they tend to have big houses. I had one once who told me that we needed to establish some sort of hourly rate because he didn’t want to pay $200 for me to trim a small tree and shrub. Almost as if you’re looked at as just a laborer or something.

I see this on occasion and they are some of my worst customers. I learned to charge them to even come out and submit a bid (and return fee when work is complete) if our telephone conversation even hints of what you just described. I have one that I worked for three years dealing with that and I finally started charging him for bids. That ended that, and I have no regrets. I calculated that when I dealt with him, my hourly rate was about 1/2 of what it should be, all things considered.

 

[Reach]

One thing I have noticed and maybe others can chime in here, is that some customers that are foreign, strong accent etc. that might not be from around here seem to want you to work for low pay. And they tend to have big houses. I had one once who told me that we needed to establish some sort of hourly rate because he didn’t want to pay $200 for me to trim a small tree and shrub. Almost as if you’re looked at as just a laborer or something.

I can attest to that as well, in this area those from India or the nearby countries tend to be the strongest “negotiators”, and tend to do call every single name in the phone book.

We don’t negotiate prices, we hold to our quotes, and walk if need be. If I want to work for free, I’ll stay home, or go pull weeds for my grandmother, thank you very much!

 

[ATH]

One thing I have noticed and maybe others can chime in here, is that some customers that are foreign, strong accent etc. that might not be from around here seem to want you to work for low pay. And they tend to have big houses. I had one once who told me that we needed to establish some sort of hourly rate because he didn’t want to pay $200 for me to trim a small tree and shrub. Almost as if you’re looked at as just a laborer or something.

Some cultures it is rude to NOT negotiate....

 

[evo]

One thing I have noticed and maybe others can chime in here, is that some customers that are foreign, strong accent etc. that might not be from around here seem to want you to work for low pay. And they tend to have big houses. I had one once who told me that we needed to establish some sort of hourly rate because he didn’t want to pay $200 for me to trim a small tree and shrub. Almost as if you’re looked at as just a laborer or something.

What I’ve noticed is that some folks that are obviously from other cultures don’t hesitate to comment on the price. This is just about as frequent as customer pulling other weird passive crap, such as “oh this is almost twice as much as the other guys”. Then you ask for the number of the quote and they say something along the lines as ‘got fuck yourself’

 

[Stumpsprouts]

One tip with working with clients is to imagine the both of you in 100 years deep underground feeding worms. Take care of the trees, the rest is a collection of fleeting details and emotions that doesn’t matter.

A good book with a simple approach to your engagement with the world around you is The Sacred Path of the Warrior, by Trungpa Rinpoche, a secular book that carries the spirit of Tibetan Buddhism into how to deal with being alive. It yields a good perspective and has helped me to avoid getting into mental traps, such as the ones you’ve been presenting regarding clients.