What to tell customers to expect from working with a Crane Company

[ward]

Right, where it shows up in the quote is not the point but that it's calculated into the cost.

As for the dialog, this is a great example of why one qualifies their client up front instead of after the quote is tendered. It's part of the selling strategy. Ask the questions up front to learn what your client values and then adjust your proposal to their values.

If the conversation does come up about the difference between the variable cost quote and the fixed cost you can relate it to their stated value.


For one thing, that's a pretty savvy customer. Which is fine. You would know this upfront if you've qualified them. Instead of the closed, albeit polite, answer you posit here, a more open ended response would be better;

"When we first discussed this project we agreed that you didn't like surprises and wanted to know what you needed to budget for the removal of your tree. I've taken into account all aspects of the crane costs based on my extensive experience. I'm confident the number is accurate. There will be no surprise additional costs for you. Does that meet with your expectations?"

It's a competitive process. The client could still decide to go with the variable cost and role the dice thinking that maybe it'll be cheaper. That's really up to them and whether at the end of the day, price is king. Hopefully there are other qualifying values that they apply to determine who they'll choose.

Whether there's a crane involved or not, the value of the work is in the customer's eyes not purely in the numbers charged. We've done jobs where the price reflected a longer day or more crew members being on the job only to have it done in half the time and with fewer people because we saw an approach that the salesperson didn't. It's inconsequential to the value of the work. That was established by the price in relationship to the objectives of the work, not in the number of hours, equipment used, or number of crew on the job.

In other words, we don't need to roll out the "machine that goes, bing!" to make the customer feel they got their money's worth.

Thank you for spelling it out so well. So, in your mind, it is entirely fair and honest to build some cushion into the crane cost because the most important thing is the objective achieved. That deserves some consideration. I like that a lot. It means you could possibly bill the client either way, depending upon what you learned about what is valuable for the client. If they want the surety of a fixed cost, bid the crane out this way; if they are wanting transparency, bid the crane portion in a variable way. The main thing is achieving the objective as the client understands it. I'm starting to see the light of how that could be okay to do--either way might make sense. Seeing the light of that now.

I will admit that fixing the cost does eliminate some of the ugly boilerplate, because you don't have to cross the hurdle of explaining all of the costs of the crane to the client. You keep those costs as a part of the bid.

I don't how you prequalify clients as to which way to bid the crane cost. You can't just ask them if they prefer the certainty of a fixed number or the transparency of a variable cost. They will want both the certainty of the fixed number, but the knowledge of the variable cost with the option to accept the lesser cost, should that be possible.

At the end of the day, darnit, maybe trust in ourselves alone and just guarantee the job for a fixed cost, without the burden of being transparent about it. Simple.

 

[treehumper]

We have done all of the above. It really does depend on the client's values. For the most part they are business minded people who understand we need to make a profit and that we will do our best to give them a price that reflects their values and the quality of our service. Most are relying on your expertise to guide them. However, understanding what they may know about cranes will help immensely in how much detail you need to discuss. A recent client is an engineer who works in the building industry. He deals with cranes all the time. It would be quite easy to discuss this with him. Others have no idea and would only become lost in the details.

It is a negotiation that at the end of the day affords either party the opportunity to walk away if the terms can't be worked out to a win-win situation. Understanding a client's values can help you keep the communications with them simple and on point. They don't necessarily need all the details in order to make the decision. Give them enough based on your understanding of their objectives and the surety that you will achieve that at the price you've set out.

The more you work with the bigger cranes the better you'll understand when and under which circumstances additional charges may apply. Time of day, month, year and the location of the job effect the traffic conditions, for instance. Learn what leads to the fuel surcharge, educate yourself on the parameters for the costs and you'll be better able to predict when you need to account for them.

 

[TJG]

I personally don't have the resources to bid on a crane job. And after reading this don't know I ever will I like to let customers know as much as they need to and answer questions honestly. In the case were getting a crane is hard they would have to know that as far as price I would be the one to have to figure that out as closely as I can. Glad I don't have to worry about it. Good luck Ward!!
Good read though allot to think about.

 

[Jehinten]

I don't do crane work myself, but I think for the most part this discussion can be had about outsourcing any part of your work. If it were me and you have all of these awesome smaller companies and only deal with the big guys a handful of times a year, I would pass on the trees requiring the big cranes. Not only is life easier when working with people you can trust to show up and not being ridiculed by homeowners for a third party not upholding their agreement, but I have found that smaller jobs often lead to larger profit margins.

 

[treehumper]

We can still profit from these bigger jobs if we account for the costs properly and build in margins that allow for cost overruns and changes. Speaking honestly to customers includes the context the answer is put in. What we understand as just part of the business doesn't hold true for the customer. They have come to us as the experts in not only doing the work but planning and spec'ing all aspects of it.

Most customers just want to know from us what is relevant to them and their objective. Our job is to communicate it to them in a manner that they feel assured that we can achieve the objective within a given cost framework. That framework may be to the penny or to a set of conditions.

 

[Limb Walker]

You need a new crane guy. Scheduling is hard in this business but the client does not care. Live and learn and hopefully you will find a reliable crane service that is consistent. If you give a price to a client you should stick to your word. Otherwise tell them (up front ) they have to work with and pay the crane comany.

 

[96coal449]

You need a new crane guy. Scheduling is hard in this business but the client does not care. Live and learn and hopefully you will find a reliable crane service that is consistent. If you give a price to a client you should stick to your word. Otherwise tell them (up front ) they have to work with and pay the crane comany.

Welcome to the buzz Limb Walker. If I gave a client an estimate and said the job entails hiring a crane to preform the task at hand, and it was up to them to obtain the crane service, I know the 1st call they made would be to another tree service. Also how would that scheduling play out?
Client: " I have the crane scheduled for you on such and such day of this week."
You: "Sorry, I have a full schedule for the next 2 weeks."
Customers in my experience want one call that will do it all.

 

[treehumper]

Client: " I have the crane scheduled for you on such and such day of this week."
You: "Sorry, I have a full schedule for the next 2 weeks."

If this was how it played out then "You" made a fundamental error by not working with the client to assist in the scheduling of a crane. That would entail giving them dates to work with or an idea of how far out you're already scheduled or what sort of lead time you need to arrange your schedule.

There are all sorts of ways to make this business work with all sorts of clients. I've done jobs where the client has arranged the ground labor, chippers, etc…

What ever works, it comes down to effectively communicating with the client and setting realistic expectations.

 

[96coal449]

It didn't play out that way because I never put myself in that situation. I like to book a number of clients for crane work on a list. Hire a crane for a day or two. We get the list done by following the crane. Priority is to keep the stick moving and get everything on the ground. We chip what we can before the crane folds up and heads for the next site. The following day we head back out to finish chipping, load the log truck, and grind the stumps that are sold. We line up anywhere from 10-20 and knock them out this way. We explain our practice to the client, and we are saving them some money by "group sharing" the crane. Everyone is happy this way and our customers love us. Our jobs are all referrals with no advertising. Customers know what they are getting when we are hired. I for one would not want to hire two different outfits to do the same job. Just an opinion.

 

[treehumper]

We do it like that as well. Crane rental for a day and book out the work. I was commenting more on what is a hypothetical situation, i.e., having the client contract the crane and the scenario that was set up. It can be done, but personally I prefer to be the one making the calls and arranging the players.

 

[96coal449]

Rob, I hear that loud and clear! I know what a headache it can be for us to book a crane for one job revolving around 2 schedules. The crane ops and your own. I can't imagine how hard that would be for a client. Luckily for us we can get around this by grouping.
Cheers