When it comes to bidding jobs, many tree care contractors want to be like Goldilocks. They hope their estimates are not too big and not too small, but just right.
This seems to be harder to accomplish these days as low-bid contractors flood markets across the United States.
In fact, on a recent Vermeer podcast Mark Garvin, president of the Tree Care Industry Association, said there is a growing number of fly-by-night tree care contractors.
“I’ve seen a widening gap between professional companies and those who aren’t,” he said.
It can be frustrating to compete for jobs against contractors who bid jobs too low for a tree care professional to match. Here are five tips on how to explain to potential customers that the low bid is not always the best bid. Additionally, at the end of this post is a link where you can download a sheet to give to customers with your bid.
- The simplest message is selling your skills. A customer should always consider a contractor’s qualifications and reputation, not just the dollar amount on the estimate. After all, what good is a low bid if the job isn’t done right? Talk about similar projects you’ve done in the past, your overall experience, and the quality of your crew and your equipment. Also promote any certifications you may have from ISA and TCIA.
- Customers may not realize that a low bid, especially one that’s significantly lower, may be cause for concern. It may be an indication that the bidder doesn’t understand the scope of the work. Also, the contractor may need to cut corners to get the job done within budget. Other concerns are hidden fees or a final bill that’s higher than the estimate because of “unexpected” issues with the job.
- Low-bid contractors also may try to save money by reducing their labor costs. The quality of the work and jobsite safety could suffer if the crew is made up of inexperienced and unskilled labor.
- Safety is another area some contractors will shortchange in order to get a job done faster. Share your safety procedures with the potential customer. That’s something other contractors may not do, and it could help you make a good impression. Also assure them that the safety of everyone near the jobsite and of their property are your top priorities.
- Talk about the importance of a contractor being properly bonded and insured, and show proof that you are. Do the same thing if you’re in a city or state that requires tree care companies to be licensed. There’s a good chance a fly-by-night contractor does not have these documents. Make sure the property owner understands the potential consequences for them if there’s an accident during a job performed by an unlicensed and uninsured contractor.
With all that said, many customers will continue to pick the low bid. So what can you do to possibly bring down your bids without affecting your margins? Here are two bonus tips.
- Try to take bidding off the table. Quality work is often rewarded with repeat business and referrals. Do a good job and you might win a longtime customer.
- Improve your efficiency and productivity. One way to do this is to examine your workflow so you can eliminate unproductive actions on the jobsite, as well as in the office and at your maintenance shop.
Another method is to look at the equipment you run. The upfront cost of buying high-quality machines — and upsizing so you can work faster or complete larger jobs — can prove to be a smart business decision over time if your production increases. That in turn can keep your bids competitive.
For example, say your new brush chipper helps you complete a job in three days that previously would have taken you four days. You can lower your bid slightly, and on that fourth day have your crew working on a new job. In other words, you could charge less, but if you’re working more efficiently, you possibly could complete more jobs and make up the difference and then some.
Click here to download a form you can give to customers that explains the importance of considering more than just the dollar amount of your bid.
Advice or suggestions provided in this article are statements of general applicability that may or may not apply to individual businesses, whose circumstances and operations may vary.