Boosting your company’s profit margins is achievable by **simply** motivating clients to increase their spending, thus elevating your revenue per transaction and watching your profits soar.
But there is a right way and a wrong way to do it….
There is not a product or service on the planet that doesn’t have a range of price alternatives on offer, from buying a smartphone, a watch, a car to, or eating at a restaurant.
But why does someone buy a $1,500 TAG watch when an $89 Swatch does the same job?
With a product, it’s a little easier. A bigger brand comes with an inflated social status through marketing and advertising getting people to shell out ridiculous amounts of money for them.
In the service industries we are working mostly with intangible things, so why would someone spend more on getting a tree removed or laying pavers when the end result is the same whether they pay the cheapest price or the most expensive one?
There are 3 main things you will need to focus on when presenting your companies services at the quoting stage to present your service as a better quality one worth paying extra money for. They are service, experience, and vision.
People only pay more when they think they are getting more…. So give it to them!
Firstly, steer clear of generic terminology when referring to your service.
Remember your service is superior and you need to convey that in the quoting process.
For example, high-end hairdressers are not called hairdressers, they are called “hair studios”. So why are you calling your service a ‘tree trim’ a ‘tree removal’ or a ‘retaining wall installation’?
What about a “master pruning service” instead of just a trim and why call it a tree removal when it could be called a “tree extraction & disposal”. Retaining wall? What about an “earth retention unit”.
Making this distinction is instantly going to get your customer’s attention and set you apart from the rest.
A big part of selling your service is showing the customer what ELSE you can do for them.
A lot of the time especially in landscaping the customers have an idea of what they want, but you have been doing it for years and have a much better way which will enhance their job 10 fold… share that vision, make them believe in you and make them see your vision.
You need to be careful here because we all know what happens when a hairdresser inflicts their “vision” on you.
…This:
…So don’t be too pushy or they will go cold on you, but making a unique suggestion that nobody else has bothered to do can be all it takes to win them over no matter what you are charging them.
What if there is no “vision” to be had with your service like when removing a tree? What else can you do for them which will enhance their experience?
What about spreading the mulch back in the garden for free?
What about providing and spreading sugar cane mulch in their garden (which white ants can’t stand) after the job, so any possible rogue termites don’t end up destroying their house?
How can you protect their lawn in the removal process…? Get creative!
Read about a Sydney tree service using this exact technique and landing 50% of his quotes here.
All these things won’t add a lot of time to your job but will add massive value in the eyes of the customer and they will pay 10 -m 40% more for the enhanced service experience and perceived value.
The biggest part of the quoting process when ‘pitching’ your business and vision to the customer is educating them.
Taking the time to go into detail about the important features of your service and explain why it is better.
Maybe you use a certain sand concrete mix ratio when laying pavers or you dig your retaining wall foundations certain depth.
Whatever it is, you need to educate and empower the customers. In doing so you are subtly showing them the superiority of your knowledge and service.
These 3 basic concepts are used to make you stand out from the crowd and be able to command a high price for your service. This will also have a knock-on effect with your word of mouth referrals.
Because you sold them a higher quality service, they will be more likely to brag about it and recommend you to their friends.
You’ll never hear someone talking about their new Toyota Yaris, but the guy that just bought an Audi or BMW, they can’t wait to tell their friends about it.
At the end of the day, we have all paid more than we would have liked to get superior quality of service or product and there is no reason why the tree or landscape industries should be any different.
Start to work on ways to separate yourself from the crowd and work those ideas into your business ‘pitch’ and service once you have the job.
Before you know it, you’ll be charging like a wounded bull.
It’s a surprising truth, but many tree care experts find themselves without room to store their mulch for future sales, and throwing it away at the landfill can burn a big hole in their wallet. Discover these brilliant strategies for getting rid of your mulch Free of charge!
We all know this one as a good one, but how do you go about it??
You need THIS link saved on your phone or iPad for the road:
http://www.australianschoolsdirectory.com.au/
It’s a complete list of Australia schools by area.
Call and ask to speak to the “groundskeeper” or “maintenance”. Let them know you have a job in their area and can give them X cubes free.
Shouldn’t take more than a hand full of calls to get a school needing mulch and willing to take it there and then.
Same as above, these guys are always looking for leaf litter mulch. You dump free and they sell on for a profit…. It’s a win-win.
We don’t have a directory for you, but a quick google search for “ landscape materials/ suppliers” for your city will bring up an extensive list.
This is overlooked way too often by tree contractors who could have a strategic alliance with 10 or 20 landscapers who are in constant need of leaf litter mulch.
Also, landscapers tackle gardens everyday and come across a tree that is too big a job for them, so they subbie out the work to random Arborists…. Be their go-to-arborist!
Try this: Send a typed letter (see template below) with your card in it letting them know you are happy to deliver leaf litter mulch (with good notice) and free to their job site at half the price they would pay in landscape suppliers. Or you could come in free and tell them to call you with any tree too big to handle.
I had a great contact in western Sydney. They were a mine who were constantly looking for a free landfill.
It was a 40-minute hike out there, but I could dump any type of mulch (including palm) free…it was worth the trip!! I only used it when I got stuck.
Being a mining country you’re bound to have one no more than an hour from you, looking for landfills. Worth a few calls in my view.
If you have a look above, there are actually ads on gum tree now from people looking for mulch!
It always worth asking the customer if they want some mulch. They may not take it all, but a lot of the time they will lighten your load… Again free!
This is actually a big one that will win you points with the customers and help word of mouth sales.
You can even ask you the customers if they have any friends or family who would like some mulch delivered free!
So far the last 6, although they are pretty creative, we are not re-inventing the wheel and they are not going to really help you when you get stuck with a couple of tons of palm logs.
Dumping palm logs is the Achilles heel for all tree contractors and can cost several thousand each year just in tipping fees.
This sneaky trick is taking #5 to the next level.
As discussed above, each council will either have specific clean updates for areas or they will allow you to call twice a year for a clean up at your specific address. The latter is perfect for #5, but if it simply is not possible never fear….. we go with option A.
Let’s use an example Parramatta City Council, Sydney. When they have a “clean up” they do 4 or 5 blocks at a time twice a year and generally allow 2 x cubic metres of waste per household.
Timing: The fact that they only do a few blocks at a time means it takes them months and months to get through all areas they cover. Then when they do, it’s almost time to start again for the 2nd round (you get 2 cleanups per year in most cases). So these are going on ALL the time and if it’s not your immediate local council there will be one within a 15-minute drive that is doing it right now.
All you need to do is make a few calls to the council(s) to find out where the current clean up is. Specifically what streets and the collection date. Now we definitely DON’T want to be taking up someone else’s space on the sidewalk when they have their own rubbish to get rid of.
So you are best just adding a couple of logs to each pile or waiting until the night before pickup day and adding bulk to the smallest pile on the street.
And there you have it, free and legal dumping of palm logs.
Yes, it will take you a few calls to find out where the current council clean-ups are, but we are talking a saving of several hundred dollars each time.
Hope this helps and share if you like it!
Mastering your tree care business hinges on those crucial in-person interactions with prospective clients when you’re introducing your services. You have a fleeting opportunity to make an impression and clinch the transaction. Explore these clever techniques to enhance your odds and turn more inquiries into revenue-generating customers.
This is so easy to do yet is overlooked by a lot of arborists. Whether you email the quote or write one out on the spot (never just write it on the back of a card) you should hand it over with your business card and your public liability/ property insurance papers.
This immediately assures the customer. People are always willing to pay a bit extra for peace of mind. Whoever hires a car and doesn’t get the insurance? We all know the likelihood of a crash is low, but it’s worth the assurance.
Think about times when you were enticed by a sales assistant – what did he or she do to entice you? Would you warm to someone who you felt had no respect for you? Would you feel comfortable with a person who made no attempt to understand what you need? Probably not.
Strong rapport is required to hold up strong relationships – much like foundations will hold up a tall building.
There is a great technique call ‘Matching and Mirroring’ that is used to build a very fast relationship or strong rapport with complete strangers. There are whole books written on the subject to basically get people to do what you want. It’s called NLP (neuro Linguistic Programming).
Have you ever noticed two old friends deep in conversation? If they are both fully engaged they will unconsciously copy each other’s body postures, movements, voice tone, pace, and breathing. Sometimes they do it exactly – matching – and other times they are mirror images of each other – mirroring.
Think of 2 mates standing around the BBQ, left hand in the pocket, other on a beer. Both will look at the ground at the same time, tilt their head back to laugh at the same time… even synchronize their beer sipping.
Matching and mirroring take place on a behavioural level through:
Physiology – body posture, movements, gestures
Voice – tone speed
Language – Keywords
Values – what people hold as being true and important
Experience – common interests
We are not going to go into too much detail now, but I want to focus on a simple way to build rapport using just language and voice.
How it works is simple. When you first meet a customer, you can generally catch their rhythm and their tone of speech quite quickly. Without sounding like you’re taking the Micky out of them, try to mimic how they speak.
For example, if they are talking very slow and relaxed, you do the same. If they are energetic and excited, meet them on their level of energy. If they call the tree a ‘gum tree’, don’t go calling it a Eucalyptus… call it a gum tree too. The more you sound like them the more they will get the sense they are talking to an old friend and not some stranger who is going to sell them their services.
This really is powerful stuff and is something that is done right and helps build that all-important rapport with a customer in minutes.
In a fast-paced world, people really aren’t all that patient. If you receive a call on Tuesday for a quote and you don’t get there until Friday to look at the job, chances are your customer already has 2 quotes and has already made their decision. Sometimes you may even get a call telling you not to bother because the job is done.
Always call the customer as soon as possible, and get there to quote it within 24 – 48 hours. This will put you in a far better position to closing the deal then if you get there 5 days later.
It’s funny how often Arborist will meet a customer, give a great quote, get on well, and at the end not ask for the sale?? If you are giving a quote and leaving the customer with “well give me a call IF you want to book it in” then you’re probably not doing enough to secure the sale.
When running a small business you are only an arborist when you are on-site with or up a tree. The rest of the time you’re actually in the marketing and sales game. The quicker you come to terms with that the more successful you will be as an ‘arborist’.
Asking for the sale can be tough, but really it’s all about getting the wording right. You don’t need to be a pushy salesman to get sales. Instead of “I’ll leave you with it” try this…
You: “ok, so the removal of both gum trees plus the stumps will come to a total of $3,400. That price includes the removal of all debris off the property.
Customer: “ok great thanks for that”
(Close the sale)
You: “Not a problem, so is that something you would like to go ahead with?”
or
You: “Great, so would you like me to book in a day for you”?
Customer: “It is something I will have to discuss with my husband first” (objection 1- need partners approval)
Objections will vary. You can either leave it at this stage of the game and wish them a good day and follow up a couple of days later or depending on what the objection is, try to overcome the objection and do what’s called a ‘soft close’.
Example: objection = Price
Customer: “$3,400!!!” that’s more than I thought it would be”??
You: “your right it is a lot of money” (empathise) “but you are only ever going to have to do this once, and although there may be cheaper companies out there, very few have the experience, expertise,, and equipment to carry out this job safely and with no damage to your property. That we can guarantee, and we can back that up with 20 million in insurance for peace of mind.”
(Overcome price objection by offering alternatives)
You: “Although I can’t make the price any cheaper, I can arrange for you to pay for it on the credit card or break up the payments into two pieces.”
(the soft close)
“If I can manage to do that for you, is that something you would like to go ahead and book it?”
There are a million ways to go about it, but the bottom line is you need to ask for the sale. As the saying goes, ask, and you shall receive.
For any decent sized job ($1,500 plus), most customers tend to deliberate for a few days before making their decision. A follow-up message, email, or call can be the thing that tips you over the edge as being the chosen company.
“[company name] would like to thank you again for giving us the opportunity to quote your tree job last [insert day]. This is just a friendly message to let you know we are here to answer any questions you might have.
If you would like to go ahead with the job, just give myself [or {name} in the office] a call so we can choose a day that best suits you.”
You could even try what’s called a drop sale if you’re a bit short on work at the time. Send out a general message to all pending customers “15% off all quoted prices when booked in before the end of the week (Friday)”. If it was the price that was swaying them, maybe you can shave a bit more off and still come out well on top!
This sounds like a basic one, but it’s surprising how many contractors don’t carry around an EFT machine with them. For some customers, tree removal might be a bit much to pay for all at once. Giving them the option to pay by credit it another way you can put yourself in front of your competition and secure the job.
Source: Brilliant NLP by David Moulden & Pat Hutchinson
A consulting arborist specializes in performing tree evaluations, drafting risk assessment documents, and generating further reports pertaining to a tree’s health, vitality, and value to the surrounding area. On the other hand, a standard local arborist primarily focuses on the maintenance and care of trees in an urban environment.
Both have taken the same courses up until Certificate III in Arboriculture. Still, consulting arborists have furthered their education to the level of a Diploma (Cert. V) and are equipped to do a more in-depth assessment of trees.
Most consulting arborists run regular tree services businesses and consult on the side as needed, though more and more arborists specialise in just tree reports.
A consulting arborist’s fees vary by the job, not by the hour. If you have a single tree that needs an arborist report to satisfy the council, it will cost $450 – $550 for a detailed report and recommendation.
The price for reports for several trees on a property, depending on the size and number of the trees, would be $500 – $1000.
Reports vary in scope, so it does depend on quite a bit of the specific requests by the council.
You will only need a consulting arborist if the council has asked you for a report on the health of a tree you want to remove or if you are submitting a development application.
If you are just after some tree pruning or for a tree to be cut down, and you have council consent, then you will need to call a regular local arborist to quote your job and carry out the work.
Finding a local consulting arborist in your area is trickier than finding a regular arborist or tree service.
As mentioned above, a lot of the time, they are the same, but if you want to just get a registered consulting arborist, you are best going to the Institute of Consulting Arborist website site to see the list of consulting arborists. They recommend in your area.
I recently chatted with the owner of a booming little tree biz in Sydney, catching fire for its stellar services.
I thought this was a MUST share strategy as I know you can all benefit.
Note: In the fairness of competition I will not be sharing this companies trading name, nor will I be sharing this with other Sydney companies as it might undermine his strategic advantage.
Well, you may have read an article published about 18 months ago called How to raise your prices and get MORE work.
In it, we discussed why some customers are happy to pay more than others, and how some companies still get plenty of work even though they charge like a wounded bull.
We even presented some ways to do it in your own business.
But the core reason these top tier companies can charge more is they have something that sets them apart from the rest.
Either massive added value to the service, or even just simple things such as the use of language for service provided.
But it’s Robert in Sydney who is really putting this into action and kicking goals.
He is setting himself apart, adding massive value, and creating a buzz about his business all at the same time.
This strategy costs him nothing and only takes about 10 to 20 minutes of extra work total.
By using it he is able to build trust, authority, and lands plenty of word of mount work because of it.
What he does is quite simple!
When he is quoting a tree for removal, he explains to the customer that the street still is losing a precious part of its critical canopy cover.
Even though this tree has reached the end of its SULE and amenity value for its particular urban location, the street is still losing a lot by removing this tree.
As almost all local councils have a tree-planting program for residents in which they give away Australian native plants free for anyone willing to plant them, he offers the customers a replacement tree of their choice (of any species offered by the council) and he will plant it free of charge to replace the removed tree.
About half of the time the customer does not want another tree… which is actually great news for Robbie!
He then places a flyer in the form of an announcement in everyone’s letterbox on the street informing them that the street will be losing a canopy tree.
He explains trees of this size are vital for keeping the soring temperatures at bay by recusing the city heat island effect, reducing evaporation, encouraging birdlife, and a whole host of other benefits.
“In conjunction with [local council name] city council, I would like to replace this tree that will be lost forever by planting a tree on your property free of charge.”
Did someone say free?
“You can choose a tree from the list on the back of this page and we will come out and plant it as a part of the council urban forest regeneration plan”
He always gets at least one taker, but sometimes 2 or 3.
This simple act of marketing genius gets the whole street talking about your business and how much you care about the environment.
It creates a story, really the “core story” of your business that people will love to talk about.
Tree removal or pruning is not an “impulse buy”, it’s generally something people talk about with their friends and family about weeks or month in advance leading up to getting quotes then having it done.
What you want is someone to say: “You should use the guy my neighbour used. He removes your tree and comes out and plants another one of your choice free of charge”!
“But, I don’t want another tree, I’m having enough problems with this one”… (meh meh)
“He actually offers the free tree planting to everyone on the street!”
Anyway, you get the picture. It’s a real taking point that will get told over and over.
The most important thing it does is set you apart from the rest.
Even if you just offered the free plant and didn’t offer it to the rest of the street, you are showing the customer you are service orientated and someone who can be trusted.
As previously discussed, the price really is not that important.
Yes, customers are not price-sensitive, but we always come up with an excuse as to why we should spend more money than we should for something.
Think about the last time you spent more money than you needed to on better quality meat from the butcher, an imported beer or better quality hotel, hire car, an upgraded package for whatever.
Have you even bought the cheapest bottle wine when ordering at a restaurant? 70% of people order the 2nd cheapest or better. Nobody buys the cheapest bottle! (As a side note restaurants actually know this and they price their cheapest bottle more expensive to make a larger profit)
The point is we rarely buy the cheapest thing that “will do the job” we constantly justify to ourselves as to why we are spending more.
If you choose not to use Roberts’s tactic, then come up with your own.
Once you fall in love with your business or service more than your customer you are finished. Constantly try to outdo yourself in adding value where possible and you will always have work.
I hope this helps guys.
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