when a free estimate becomes a billed consultation

Location
Michigan
I run a small company and do estimates as well as work in the field with my employees. We do some work for a property mgt company that has been good to us. They just got us a new condo complex which could be promising but a problem is starting with this property. The parties involved are: (1)contact person from the property mgt company; (2)condo association board president; (3)condo resident who doesn't like and won't communicate with persons 1 and 2; (4) me.

The president is an engineer by profession and accustomed to multiple, long meetings and discussions of projects before and after work happens. After spending 4 hours talking with him and meeting him to look at 20 properties, I re-walked the place on my own and created a lengthy proposal. They selected items 1-9 (out of 50 some items on the list) to get things started and see how they like us. During the work person #3 from above refused to speak with the president and the prop mgt contact person to their faces in front of me (we all went together to him to discuss some of the pruning in his yard). He only wanted to work with me. Fine. But he ended up needing to talk to me for an hour and a half while I had an employee there on the clock. Gassing up saws and putting an edge on one chain only takes so long.

So now we have finished items 1-9 and the president came out and wanted to do an hour long walk through to look things over and talk, again while my employee was on the clock and we had other jobs waiting. And he also wants to do more work, but here's where the problem really starts. I have already spent hours preparing and discussing this list of the remaining items, and am ready to simply proceed with with items # 10 - 50. But the president wants me to re-walk everything and see if I come up with any more suggestions, and then wants to have a meeting to discuss this with the association board, the prop mgt co guy, and me for all this work to be discussed. I understand that up front I need to put some extra time into this to win everyone's trust and get acquainted, and I'm happy to do this. But this is starting to conern me bcs it seems there is a pattern of communication that takes up huge amounts of my time and the duplicative multiple rounds of estimating. Also I think that the president needs to take some responsibility for finding a way to communicate with the challenging resident so that at work time, my crew and I can get to work. Here's my question: how many meetings and estimates and discussions and hours should be spent here for no charge? The president said he wants me to be an advisor for the neighborhood's tree issues, but he wants to get his advice in the course of lengthy discussions during "free estimates", and likes to discuss the same things over and over. How do I draw a line here and create billable hours for the consultation? I could just raise my rate a little to compensate for all this extra time, but have already given prices for all the remaining items. Please help!
 
Trees don't lend themselves to pin pointing every little limb and twig that needs pruning.

I like to use the phrase 'If this tree were mine I'd.....'

At some point they are going to have to trust you to do the right thing to the plants in question Vs. hammering out hundreds of details.

Person #3 needs to hire you on his own. Tell the bosses you'll do the right thing to person #3's trees or you will not be working for him.

Best of luck. I try to get that kind of work by the day Vs contract price. It sure makes it a lot easier getting every little detail the way management wants done, done, and cuts way down on going back to micro trim where you've already been.
 
Add item #51 to your list: Consultation fee. Identify what exactly this is, and when it begins to be charged to the job. Every professional out there does this, Lawyers, Doctors Etc. We need to do this too. Many times I am called in to "look" at a tree. When the questions begin and the inspection begins to turn into a consultation, I politely inform the client that we are approaching the point of the visit becoming a consultation and that I will be billing for my time and tell them what the rate will be. At that point they either agree and continue or we move to a faster end of the initial inspection. Usually seems to work one way or another.
 
One of the first things I learned to do with HOAs was to make it clear up front that I will communicate with and answer to a single point of contact.

It doesn't matter to me who that person is, whether the pres, chair, property manager or the cranker in unit #3.

<u>You must make it clear that you will deal with One and only one point of contact.</u>

If you don't you'll spend most of your time peeing in the wind and getting caught in a crossfire you cannot hope to survive.

The Second thing I learned is that if they do not already know exactly what they want done then I am doing consultation work.

Whenever I meet with them that time usually gets added to the proposal. Or, if it is a new customer, it is billed separately and I ensure payment by not releasing the proposal or other documentation until payment is successfully deposited.

So, if I spend an hour on my own gathering data, it's billable. If I walk the property with the entire board to discuss the property, it is billable. If I walk the property with the POC to go over the proposal, it is Billable. If I have to go back and walk the property to get more data, it's billable!

Your time is valuable for a variety of reasons. People will treat it like a free buffet if you don't maintain control by making sure they value it as much as you do.
 
Got a great approach there Rick. I work for a training consultant who would give clients 2 edits to a custom program then anything beyond that became billable. This was done with some very big companies who just made sure they really covered everything within the original price.

Once you get a handle on the cost of sales then you can add it into your overhead within your man hour rate.
 
Great question! I am on record here and elsewhere as an advocate for No Free Estimates. But, if you catch me at a weak moment, I will acknowledge that 'how much to remove this tree' is different from "how much to do what you think my trees need?"

The problem, as I see it, is that lawyers are always lurking. If I walk past a hazardous tree on my way to give that free estimate, then the hazard fails and kills a car or a house or a person, I may be on the hook because of my credentials: I should hav eknown there was a significant risk and pointed it out. But, if I walk past forty trees on my way to the removal in back, I may have an hour's work documenting the hazards I saw. Why should I do that for free?

My current employer deals with this question by taking out a rider on his insurance against malpractice, or whatever they may call it. Not a bad compromise. But, ultimately, I still say "No Free Estimates!"
 
Do not let the lawyers take over. If your estimate sheets say that you only examined the trees that are listed on the sheet than liablilty is limited.

Estimates vs. consultations are tricky. Essentially an estimate should take a few minutes only and you do not need to answer questions other than about insurance coverage, timing etc.
 
Estimates vs. consultations are NOT tricky if you don't do free estimates. Your WHOLE scenario could have been fixed if they all knew up front that your time is costing them. And when other people walk into the mix, you can look at the person paying and ask if you should entertain the second party's questions.

You scenario is the exact reason I charge to talk to people. If it was just an estimate, they would have just gave you a short list of work they wanted done, then you can go out, look at it, and email them a price later. They wanted more than that from you, and they got it...for free.

Your question about how many meetings should you do for free: NONE. Be polite, but make sure they know that your time is valuable and when you spend 2 hours chatting with them, you coulda made $500 elsewhere, so for them to pay you $150 is SUPER reasonable.

Tell them the prices given are for the work that has already been talked about. You have no other reason to go out there. If they want to talk to you, it's because they don't know what they want to do yet and they NEED you to help make sense of it all.

Put your foot down now. You may regret it if you don't.

Hind sight is 20/20, but had you said up front that there was a fee to come out, they might've said screw you. Then you win. No headaches!

love
nick
 

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