The No. 1 way to increase your company profits is to charge each customer more, thereby increasing the average yield from each job and thus making your business far more profitable.
But there is a right way and a wrong way to do it….
Are you the TAG or the Swatch Arborist?
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?
Focus on this...
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.
1) Superiority
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.
2) Vision
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!
- IDEA…Free tree planting – “We can plant a free tree sapling of your choice to replace the tree/ canopy cover/ bird sanctuary you have lost. (Normally a $345 service – free with every tree removal)
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.
3) Educate
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.
Author: Ben McInerney is a certified arborist with over 15 years of experience in urban tree management, including tree removal, trimming and arborist reports.
