In the Milwaukee area, where I’ve spent my tree career, I’m one of the few outfits that works by the hour. Most of my competitors work by the bid. There are upsides and downsides attendant with each way of pricing work.
I started out working by the bid. I moved to working hourly when a particularly tough job came along, an old box elder right up against the house. It was spread over that house and yard and into adjacent yards on both sides. Three garages, 13 wires, no lift access.
I told the client I really had no idea how much time the job would eat up. I told him I would only take it on by the hour. And I gave him my best guess. He trusted me. He knew his tree wasn’t a piece of cake. By chance, my client turned out to be pretty much right on, though such is not always the case.
Working by the hour
I prefer working by the hour for several reasons. I am more or less assured of a livable wage and focus on getting the job done right, not on beating a given price. On occasion, I’ve given hole-in-the-head estimates and had to give clients a discount. By-the-bid work can get to be either feast or famine – great when feasting, not so great when taking a bath.
Bid work is fine when the job is going smoothly, but when the project hits a snag, corners can get cut and the job isn’t finished to the client’s expectations. Also, chances may be taken that can be potential recipes for accidents.
By-the-hour work levels the playing field for all clients. I’ve worked in all the neighborhoods, from the heart of the inner city to the moneyed communities to the east, west and north of Milwaukee. Everyone gets charged the same, a reasonable hourly rate, a rate that is fair to the clients and fair to me. The affluent aren’t made to subsidize the less affluent.
Working by the hour is not all smooth sailing. Some clients are uncomfortable not knowing what the final bill will be. Some clients think I’m going to work at a slow pace for obvious reasons. Mindsets such as these tell me more about their work ethic than they do mine.
A highly competitive trade
I work in a highly competitive trade. I have to produce. I’m an established arborist. Some clients I don’t need or desire. Many tradespeople charge by the hour: auto and small-engine mechanics, electricians, plumbers, stucco applicators, computer geeks. The market allows these professionals to work by the hour, and I feel I should be able to do so, too.
I’m totally up front with what I want per hour. Those who work by the bid have a benchmark hourly rate in mind, though they don’t let the client know what it is. I have an idea what that is. My rate is competitive. It boils down to trust. Trust on the client’s part that I’ll produce. Once they’ve seen me work, they know they’re getting their money’s worth.
Hourly pricing or pricing by the bid – it’s up to the individual arborist to decide which route suits their style and which they feel most comfortable with.
Michael Hoppe is owner/operator of Michael Hoppe Arborist, a two-person operation based in Wauwatosa, Wisconsin.
