There is a lot of GREAT information an wise advice on this thread.
Especially:
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Wrong question, your life is priceless. I have passed up several trees that I could not see a safe way to remove. Learn how to do a job safely and don't take a job if you can't create a safe plan.
Knowing what to charge is easy. The study of economics teaches us to charge as much as the market will bear.
Translation: charge enough to stay busy.
How far out do you want to be booked? 1 week, 2 weeks, a month? I try to stay booked for two weeks. The market doesn't care how much it costs you to do a job. In a good way they are selfish and will compare you with the competition.
My customers want to feel comfortable that they are hiring a professional at a competitive price. You figure out your pricing by how much work you have. If you charge too much, no one will hire you. Undercut everyone, while maintaining quality, and you will go out of business fast.
Growing a business is a fun challenge. Make a plan for where you want to be a year or two from now. Grow slowly. Starting off the market will not pay you top dollar. You have to build you skills, image, and reputation.
Last bit of advice. Get paid for results, not effort. Don't focus on an hourly rate, focus on how much you can get done and how much that job is worth to the customer. Then, figure out how to do it faster. As you start charging more and can't keep up with all the work, buy better tools. That is the best way to get a raise, get more done in the same amount of time.
1. Charge enough to stay busy
2. Focus on results, not effort
3. Improve your skills, image, reputation
It should go without saying that you have to do this at a profit. If you can't, you should work for someone else while you work on number 2 and 3.
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I think new people should print that one out and stick it on their wall. Or people that have a hard time making ends meet and want to make sense of their pricing. Very intelligent advice there!
But I think Passion for Trees is thinking like Maui tree and Palm and I don’t think that is the way to price things. Don’t take offense please, Passion for Trees. Difference of opinion, it doesn’t mean I’m correct. This is what forums are for, conversing and trying to share knowledge.
I never believe that a tree should be expensive, because there is a risk of death or injury in that tree situation. If the tree takes a lot of skill to do it safely, doing it safely usually takes longer and therefore the extra time is what makes the price go up.
Lets take for example your really dead tree that the home owner left dead way too long, say 6 years. White rot fungi everywhere, roots might be rotted off. In a situation where the tree can’t be felled without likely damage to some buildings; tree needs to be pieced out.
Here are possible and safe ways of doing this tree and the related costs with taking that tree down safely:
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1. Skilled tree company uses their best climber. Climber decides tree might be unstable, so he takes the time to set up guide ropes to hold tree in place using throw lines to place and secure them. Then climber and crew set up a high line and the climber works very safely off the high line and dismantles the tree.
Takes 3 hours to set up and 3 hours to dismantle the tree and clean up.
3 man crew, truck and chipper.
This crew can usually accomplish $250 worth of work an hour.
Tree correctly priced at 6hr x $250 = $1500.
2. Choice two. Crane is used.
Crane time on the job almost 2 hours, rental cost was $500.
Crew of 3 men, truck and chipper and the crane set up and time of cleanup was less time, 4 hours total. 4 x $250= 1000 for the tree company.
Crane rental $500 + $1000 tree company = $1500 AGAIN for the same tree removal cost.
3. Choice three. Tree is difficult to get close too, so some brush cutting and altura mats had to be laid down for a bucket truck to get in close. Bucket truck operator can’t reach all, but can reach with a pole chainsaw and dismantles the tree.
Bucket truck, chip truck and chipper and three men are used to accomplishing work at the usual rate of $300 an hour.
Job took them 5 hours to finish.
5hr x $300 an hour = $1500 Again.
4. Let’s pick an odd one for the sake of example.
15 illegal and underpaid Mexicans do the job.
They get paid $5.00 an hour.
15 x $5.00 = $75 and their piece of crap boss likes to clear $75 an hour on top of their costs.
$75+ $75 = $150 hour.
Their boss was a house painter and has tons of scaffolding.
It takes a very long full day to set up scaffolding around the whole tree and they piece it apart in tiny chunks safely and dismantle the scaffolding as they go down.
10 hours x $150 = $1500 once again. Imagine that.
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Really though, this is how correct pricing of trees should turn out and in reality they are very close. Maybe $100 or $200 difference. It has to be the exact tree and the region will set the prices that should be charged.
More equipment and more skill makes the hourly rate higher, but in turn, they get it done faster and it comes out very close to the same price no mater how it’s done safely.
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Now, if you throw safety out the window, this is when you have no idea what hourly rate you and your crew should charge. Some days it turns out to be $150 an hour, some days you make $700 an hour.
Take that same tree and hillbilly Butch says, “all... no big deal, it will probably stay up“.
He doesn’t do any preparation, spikes up the thing and strips it out.
His adrenaline is going the hole time and he’s sweating bullets. A few times he banged another limb and the tree swayed and he thought this is it, I’m going to go down with this tree.
The tree stayed up luckily and they got the whole tree done in 3.25 hours.
He knew that other companies in the area probably would have charged $1500 for that tree and that’s pretty much what he priced it at.
$1500 / 3.25 hours = he made $461 an HOUR for that three man crew that day.
He thinks to himself $461.00 !!!!! That’s awesome. Well, my life is worth it, that was a dangerous tree.
8 years later of doing the same unsafe practices, old Butch has a tree break off and he gets killed. Did he make enough in his career to pay for his life?