selling tree work in a tough economy

Altissimus

Altissimus

TreeHouser
Joined
Jul 1, 2008
Messages
8,036
Location
southern Vermont
for the last almost three years sales have declined... many customers are simply waiting to authorize the work.... the larger crane guys have dropped their prices effectively pulling them down for everyone...some hacks that have no work in their qualified trades have jumped into the game as well ....I have tried to yield to present circumstance and have sold a lot of work way too cheap just to keep going.... but long run this simply won't work!.... I have deliberately started to push my prices back UP where they belong. Sure I'm not getting a lot of these jobs but I'd rather work one well priced job than run around to get through low balls hoping for a better day.
 
I am fortunate and during better times I bought good equipment such as the wheel loader, knuckle boom and Wraptor. These tools enable me with just 1 employee to knock out big jobs quickly and efficiently so I am still making OK money and still underbidding most of the competition. I have noticed a lot of new co.s showing up with BRAND NEW equipment??? How the hell do they think they can make it with that overhead when established co.s are having a tough time???

Try to become as efficient as possible even if it means spending money to do so. Things are going to continue to get tighter IMO, it aint going to get better and you gotta work.......
 
I'll agree with Paul on the advantages of specialized equipment which enables you to make a profit while working cheaper than most.

There is a small segment of the population which is still doing quite well financially and they are spending money as usual. And as in most cases, it's not what you know but who you know. My two best clients (who keep me busy 3-4 days per week) are selling work like crazy and getting top dollar for it. Their standard reply when a potential customer says something along the lines of "XYZ Tree Company gave me a lower price" is to say "Well, hire them". It's all about your reputation and having a reputation as the most expensive tree service in town can pay dividends.
 
What I see is a change in perspective amongst the consumers. What was once the way more common attitude of hiring someone who will do good work, is being replaced by wanting to hire someone who will do the work cheaply. The priorities have changed.
When you want to hire someone who will do it cheaply, that encompasses construction workers and you name it, who may have the gear that will get them through the job, but if you observe them doing it, and often the after effects, it doesn't rate very high in terms of professionalism. With the change in priority amongst the consumers, has also come a certain blindness. Lowering your prices is one thing, but you have to keep your pride. Pride alone just doesn't pay the bills so readily.
 
Since we became TCIA Acreditted, we get to bid on jobs that require it. There are only 3 companies in San Diego county. Keeps things more apples to apples. Also, we dont do residential.
 
I see a big opportunity in this to differentiate yourself from the hacks by advertising things like being a CA, spurless climbing techniques on pruning jobs, low-impact rigging techniques that avoid damage to landscaping, and proper pruning techniques. If a bunch of low-bid contractors and landscrapers want to get into the tree business, I say welcome. I don't have to pay them a thing, but they are out there all day long every day just making me look good. Sure I'll lose a few jobs to them, but they are helping to build my reputation for excellence, which justifies a higher price tag.

You might also start volunteering to give lectures or something to gardening clubs and at home-owner's association meetings. If you pick a wealthy neighborhood, it can be an easy way to get a lot of work. there are also probably other ways to tighten up your game a bit, such as making follow-up calls to customers you worked for 6-12 months ago "just to see how things are doing" and even on bids that you lost "just to see if there was anything you could have done better to earn their business." These kinds of things go a long ways to generating referrals.
 
I'm not advertising, but my phone still rings... reputation is key.
 
I've done a little advertising this year for the 1st time really and I'm swamped. Same thing up here though, every Joe Blow who's ever worked in the woods is a treeguy all of a sudden. I contact all of these new and little upstart guys and let them know, I'll take all the jobs that they can't/won't do. Hell I'll even sub in for my hourly rate, but I'm gonna be rolling in with my signed up trucks and shirts and what not. I might even put my sammich board at the curb lol. I do my best to run pro all the way, and that sets me apart from my competitors. A huge chunk of my work comes from repeat or referrals and I'm not even bidding against anyone else, just through my rep they want me to do the work and know it'll be a fair price.

When things ever look tight I grab the phone book and go through the yellow pages and start phoning every single company that might ever have to deal with trees.

As far as pricing I bid to make money and I bid 'em and forget 'em. Plenty of trees around.
 
Still busy here, but I don't just do trees. What Sqwerl and NE said. Reputation goes a long way. Providing a niche with that rep goes a long way as well.
I am getting more tree work this year than last. It is what I am pushing the company into. I am also comparable in pricing with most of the competition except for the really expensive or the really cheapos. I have not discounted my pricing nor plan to. If they want it cheaper, they can hire cheaper. I won't do it for less than I feel is right.
 
im just a touch under where i want to be on my per man hr ,
but cant raise it, i did and wasn t selling, so im back to the same per hour /day rate as years ago
but im keeping busy
 
I am your local low ball hacker, Pirate Tree Care, Keep'em Scared.....
My little gig is humming along almost at will, mainly all word of mouth and repeat clients.


But, seriously. JeffLovstrom
In some instances, only a TCIA accredited outfit can bid?
Like Disneyland or Seaworld or something?
What's up with that?
 
  • Thread Starter Thread Starter
  • #13
I do have solid reputation in my market... been climbing since 1985 , own a small chipper (paid off) many saws and a real nice collection of rigging.... I keep it simple drive old phone trucks thus skipping the payments on the gleaming F-350 that many contractors run for the image....I probably would have been fine but for the fact my best client cut way back...my groundling has had to seek work elsewhere as I can only afford him when I need lowering right now...I'm no economist but I sure hope the worst is over and maybe things will get better say with a better stock market and real estate coming out the basement
 
It's not bad out my way. Although f I had to fill week after week it'd get tougher, though luckily my only expenses these days are fuel and maintenance on the business end. All WOM, and it's amazing how much work you get from just being out there. I'd recon if I was out every day I'd be way busy, but my current job situation won't warrant that. Next year I'm highly thinking of cutting the cord with the other job though, just have to see. Stick to your guns, don't drop down too much if you think you have to in the first place.

For example, today a lady handed me a flier saying this is your competition. It said "any tree for $700", she wasn't having it as she likes our work.

I bet it is tougher in Vermont though.
 
Don't forget that school is about to start again in a few weeks. I've always had a rather severe drop in calls the week before school starts and it lasts for several weeks. Edjukatin' ur chillins iz espensive, ain't got no exxa dollas fer tree work.
 
Bodean said:
I am your local low ball hacker, Pirate Tree Care, Keep'em Scared.....
My little gig is humming along almost at will, mainly all word of mouth and repeat clients.


But, seriously. JeffLovstrom
In some instances, only a TCIA accredited outfit can bid?
Like Disneyland or Seaworld or something?
What's up with that?
Click to expand...

Yeah, like those. Arborwell is moving in here and they and one other co. is Acreditted. The jobs I am talking about usually have a consulting (non-biased) arborist that does the tree inventory and recommendations and only Acreditted with a CTSP on staff as well as a CA. I got all that. The trend is looking like it is going that way here as more company's are seeking the same certs or stick to bidding against the pool of tree guys.
 
Jeff, I never have quite figured out, is this your own business? What's it called?
 
Bren, I'd love to take that guy up on his offer next time I'm looking at an enormous 3-day removal. :lol:
 
Competition is pretty fierce around here. I have survived on a trickle of repeats and referrals but I really need to advertise more. I used to get a lot of work from the local paper, stayed in for years and now I am number 2 out of maybe 10 - yes 10 tree guys in our little local neighborhood paper.

Read a short book called "Who Moved My Cheese" , it really hit home with me and changing times, I gotta suck it up and advertise a lot! I am not big on dropping prices in this heat, screw that especially on removals.
 
Cool, sounds like a nice setup, no homeowners! Thats both good and bad, I have some clients I really enjoy
 
Bodean said:
I am your local low ball hacker, Pirate Tree Care, Keep'em Scared.....
My little gig is humming along almost at will, mainly all word of mouth and repeat clients.


But, seriously. JeffLovstrom
In some instances, only a TCIA accredited outfit can bid?
Like Disneyland or Seaworld or something?
What's up with that?
Click to expand...

You dont like making money?
 
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