Price quoting

[70t351w]

When pricing a job is it best to tell the customer the price per hour? I know in my mind how much I want to make an hour. Or would it be best to figure the hourly rate times the estimated hours and give that to the customer without telling them the hourly rate?

 

[woodchux]

If you work by the hour the customer will be pressuring you to work faster.

 

[Brush Hog]

They'll have you splitting minutes so they don't pay anymore than they have to. Price it by the job and don't forget to add some "cushion". I also give a written estimate and have customer sign it. That way customer knows it's an estimate and price may be higher. It says so at the bottom

 

[stumpjumper83]

I don't know about the rest of you but I don't mess with estimates, I do quotes. And upon request I'll do work by the hour. The thing is that If a customer agrees to a $2,000 estimate that is what they expect to pay. If you go over your estimate they get grumpy cause its costing them more money. Of course if you go under your estimate they are happy, but you have a higher possibility of being under bid.
:greenchainsaw:

 

[John464]

I would never charge a customer over my original estimate unless I hit unforseen metal or concrete in the tree. I can not think of any other reason your "estimate" should not be exact.

Charging someone over your original price is unethical if something unforseen does not apear while on the job.

 

[Brush Hog]

In the landscaping world there is "unforeseen" things all the time. I've just started to get into trees and sticking with my estimate routine.

Tree Co , I rarely finish a job for less. I bid them very tight in a competitive market.

John 464 , I'm in this gig to make money not lose it. I don't work for free period. Call it unethical if you so chose to.
Pete

 

[70t351w]

Did a job today. Basic tree dropping nothing special.
I told the owner I would do it for $40/hr. I feel like if I just told them a bottom line price the owners would not have been so reluctant to let me finish. Trees were diseased and dead.

 

[squad143]

I usually estimate how long it will take me to do the job, multiply that by my rate and give the customer a quote on what the job will cost. I do have a minimum figure in my head for certain work (I have a minimum figure for just dropping a tree, another minimum if I have to climb, etc. etc.)

As time goes on I'm getting better at my estimating. I find that tree work is not like construction where you can actually lose money (or work for nothing) if your quote is off. I usually work with my wife, or with one other guy & I have very little overhead. I have found that with trees, I always make money, just on some days it is more than others and on good days it is a lot more.

I'm fortunate to usually be doing the work when the customer is not around (I perfer it that way). They have agreed on a price and are quite happy when they return to find their tree gone and the area cleaner than when they left. If the customer is there and I get the job done quickly, I'll casually make a comment about having good (and expensive) equipment makes the job go quicker.

The only time I would charge an hourly rate would be if I was doing chipping service and I charge a minimum plus every hour after that. Time is on my watch and not the machine's clock.

 

[John464]

In the landscaping world there is "unforeseen" things all the time. I've just started to get into trees and sticking with my estimate routine.

Tree Co , I rarely finish a job for less. I bid them very tight in a competitive market.

John 464 , I'm in this gig to make money not lose it. I don't work for free period. Call it unethical if you so chose to.
Pete

you should be able to look at a job an estimate what equipment you will need, how much travel time you have, how much fuel and how long it will take a crew to do the job, etc. then come up with an exact price. And on the bottom of your estimate sheet should contain a statement that says something about unforseen objects there will be an additional charge.


I'm in this to make money as well and charging someone more because you underestimated is not the way you gain valuable customers. I've had many of the same customers for over 4 decades and they wouldn't be there if I didnt give the correct price price before they agreed to contract my services.

The landscape world is totally different. Welcome to the tree world.

 

[Canyonbc]

John464

Nice, i really like the way you summed it up. I cant really add anything but a way to sum it up.

 

[Mitchell]

hour price

When pricing a job is it best to tell the customer the price per hour? I know in my mind how much I want to make an hour. Or would it be best to figure the hourly rate times the estimated hours and give that to the customer without telling them the hourly rate?

I found that folks would choke on a price per hour contract. Most folks have never been in business for themselves and do not realize that 100$ to 200$ a hour is not that much after expenses.
I found that letting folks know I [typically] average 150 a hour turns them off. They do not realize I see very little of that.

 

[Canyonbc]

I found that folks would choke on a price per hour contract. Most folks have never been in business for themselves and do not realize that 100$ to 200$ a hour is not that much after expenses.
I found that letting folks know I [typically] average 150 a hour turns them off. They do not realize I see very little of that.

Second that.

 

[Brush Hog]

John 464, I guess I should have worded it differently. If I charge more money(in tree work) it is for a unforeseen problem. My tree quotes are easier than bidding on landscape work. Trees seem straight forward to me while in landscaping you don't know what's in the ground until you stick a shovel in it:bang:. Sorry if I came off as a arrogant a-hole. If I under bid a job it's my fault but if I hit ledge it's customer problem.

I also agree with customer choking on per hour charge. People try to beat me up on a $40 lawn but don't realize I've got $20K sitting on a trailer to mow their lawn never mind insurance, fuel and other costs of biz. I wonder if the shoe is ever on the other foot with these people. Somebody else trying to squeeze them outta money

 

[70t351w]

Originally when I posted this thread I had a flakey lady who wanted some dead trees removed. She couldnt decide on what she wanted done because of the numerous dead oaks. None of them were all that big. I finally told her I would do it for $40/hr. She cringed with two brand new vehicles in the drive of a $200,000 house. I ended up cutting 6 trees down, clean-up and burning them for $185. Did not even get half the work done. She told me that was enough. :deadhorse:

 

[2FatGuys]

Since this isn't my full-time income source, I'm not sure I'd even load my climbing and rigging equipment into the truck for $185! What we do involves risk, experience and expense. I have suggested to more than one "client" that if they don't like my price, they can call someone else. My price is based on "Safe - Neat - Complete". If they want less than that, then that is their choice. We have enough to keep busy without having to do work without decent compensation.

 

[70t351w]

Since this isn't my full-time income source, I'm not sure I'd even load my climbing and rigging equipment into the truck for $185! What we do involves risk, experience and expense. I have suggested to more than one "client" that if they don't like my price, they can call someone else. My price is based on "Safe - Neat - Complete". If they want less than that, then that is their choice. We have enough to keep busy without having to do work without decent compensation.

I understand and agree totally. This is not my only job. I want it to be in the future, need the health insurance for my family. I learned from this job and have not quoted a job like that since. Thanks for the info!

 

[reachtreeservi]

Originally when I posted this thread I had a flakey lady who wanted some dead trees removed. She couldnt decide on what she wanted done because of the numerous dead oaks. None of them were all that big. I finally told her I would do it for $40/hr. She cringed with two brand new vehicles in the drive of a $200,000 house. I ended up cutting 6 trees down, clean-up and burning them for $185. Did not even get half the work done. She told me that was enough. :deadhorse:

I don't crank my saw for less than $300. Even if a job only takes a couple of hours. I came up with that minimum a year ago to keep me from under bidding small jobs. And I do alot of jobs at my minimum price. People seem more than happy to have me trim 2 or 3 branches and clean up for $300 . I'm covered up with this kind of work. If they hesitate I tell them to look in the yellow pages and get 3 quotes, say have a nice day and get in the truck. I never negotiate. I feel that considering the investment in specialized tools , training and the risks involved, that's a more than fair price. I would never consider working by the hour. But that's just me... If you think that you can do better by the hour , I say great. Just don't end up giving the work away!