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02-20-2007, 02:44 PM
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Acorn
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Join Date: Feb 2006
USDA
Posts: 33
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Consultation Fees?
Hello everyone,
I have a question to ask of you folks who have been in this business for awhile. For the past ten years of our existence, we have offered free estimates. This year we are considering implimenting a 'consultaion fee' for our initial visit to the potential clients yard and a design fee also. The only thing is where do we start with pricing on somehting like that. We somewhat have an unofficial design fee, but what about the initial consultation? Do we just do a flat rate for everyone? Or do we charge by the hour for that too? Let me know some of your thoughts and practices, it will be much appreciated
__________________
Jesse VanderWaal
Landscape Foreman
Millhome Nursery and Greenhouses
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02-20-2007, 04:27 PM
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Gold Oak Member
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Join Date: Feb 2004
USDA Zone 5
Posts: 510
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We charge $50-$100 depending mostly on the distance traveled and if during the preliminary phone interview I catch the wiff of a PITA odor.
The consultation fee is really just to weed out the shoppers. It's not a real money maker. But I've been doing it the last three years or so and would never go back to the old way of free advice and info delivered to their door at a time that's convenient to them (and not necessarily me).
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02-20-2007, 04:53 PM
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Gold Oak Member
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Join Date: Aug 2006
USDA
Posts: 96
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ok, caught my curiousity, I know I should know this...what's PITA stand for?
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02-20-2007, 05:04 PM
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B&B Tree
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Join Date: Mar 2003
Location: LaGrangeville, N.Y.
USDA Zone 5
Posts: 852
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PITA = Pain in the rear end, so to speak.....
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02-20-2007, 05:05 PM
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Gold Oak Member
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Join Date: Dec 2005
Location: South East Pa
USDA Zone 7
Posts: 387
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Quote:
Originally posted by bricknblock
ok, caught my curiousity, I know I should know this...what's PITA stand for?
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Pain In The A$$!
We charge consultation fees for advice and/or diagnostic services for certain services. However, we still give free estimates. I think there is a big difference between giving a person an estimate versus information. If a client calls and wants a maintenance package or a select service and it is pretty cut and dry, we do not charge for that visit. If a customer wants us to come out and find out why they have water in there basement or why there water feature is leaking, then that is a consultation. We charge hourly for all consulting at $75 for the first hour and $50 per hour after that. We will also submit to the client a detailed report that explains our findings and what course of action should be taken. The time for the report is built in to the hourly fee.
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Matt
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02-21-2007, 12:58 PM
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Gold Oak Member
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Join Date: Jun 2006
Location: Phoenix
USDA Zone 9
Posts: 160
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If they want advice about technical problems with their landscaping, you give them an estimate or bid to fix it. Estimates or bids are usually free.
If they want a consultation because they think the last guy messed something up, I usually pass. Unless they come recommended or I have a brain fade. I usually try not to be the next guy that they complain about.
If they want an actual design consultation, I charge $65. - $75. per hour with a two hour minimum. Its not a direct money generator. We talk about their yard, I give them some ideas, sometimes I'll make a very casual sketch, they get excited and usually sign up.
Anyone who has the money to hire and landscape contractor shouldn't have a problem writing a check for 150.00. If they do, usually the are just time wasters. Every once in a while I get the DIYer who just wants to steal my ideas. Usually its a guy, not the wife, that wants to save money and he tries to pick my brain for ideas and how to actually install stuff.
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Yes, this is Phoenix. Yes, it's REALLY hot here. Yes, I love it.
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02-22-2007, 08:03 AM
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Acorn
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Join Date: Feb 2006
USDA
Posts: 33
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Thankyou all for your imput and insight. We are gonna give it a try this year with the consultation fees. Last year we just told the DIYers that we could not do designs for them. We just did not have time with what we were doing for all the customers that hired us. So anywyas, we'll give it a try and see what happens. Take care and good luck with the upcomming season!
__________________
Jesse VanderWaal
Landscape Foreman
Millhome Nursery and Greenhouses
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02-22-2007, 12:18 PM
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Gold Oak Member
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Join Date: Jun 2006
Location: Phoenix
USDA Zone 9
Posts: 160
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Hey Jesse,
I spoke with a friend of mine who is a contractor and does all of his own design work. He charges $500.00 for design consultations that he credits back to them if they choose him for the installation. They usually get a casual sketch and a basic list of suggested plants and some ideas and options to think about. He says it really cuts down on the looky loos. 
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Yes, this is Phoenix. Yes, it's REALLY hot here. Yes, I love it.
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02-17-2008, 02:23 PM
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Gold Oak Member
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Join Date: Nov 2007
Location: Victoria, BC
USDA Zone 9
Posts: 14
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I just had an email from a lady and her husband that wanted to landscape their backyard...they wanted to do the work, but wanted me to consult throughout the project, so I sent an email back stating that I charge $75 hr for consulting.
All I got back was..."you're #@*^$% nuts!!!".
So other than her being rude, is it her or me?, I'm really new to the pricing game so I'm always questioning my pricing, but I don't think I'm out of line.
DC
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02-17-2008, 03:34 PM
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Gold Oak Member
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Join Date: Feb 2004
USDA Zone 5
Posts: 510
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Welcome to the benefits of "pre-screening." You just saved a bundle of money by not wasting your limited time on these tire-kickers. You can now use that time to make real money. Congratulations. You really should send them a "Thank You" note.
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02-17-2008, 05:03 PM
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Acorn
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Join Date: Feb 2006
USDA
Posts: 33
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I am gonna go with John on this one. People like that are really not out for a nice landscape. We have had a few people like that this past summer. Some are like the people you dealt with, and others are very agreeable to that price. One always feels a little guilty passing up some work, but some work is not worth the effort.
__________________
Jesse VanderWaal
Landscape Foreman
Millhome Nursery and Greenhouses
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02-17-2008, 05:46 PM
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Gold Oak Member
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Join Date: Nov 2005
Location: Monroe, NC
USDA Zone 10
Posts: 617
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A thank you note and a bouquet of flowers will still have you come out on the good side of things if you decided to follow up with them.
I think back on all the time I wasted with certain customers and never received a cent.
Your doctor , lawyer, plumber, mechanic, architect wouldn't do that.
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02-19-2008, 01:52 AM
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Gold Oak Member
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Join Date: Feb 2008
USDA Zone 9
Posts: 17
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I definitely charge for design consultations. I charge $75 for a two-hour consultation, which is credited back to them if they decide to hire me to create a landscape plan. If they just want an estimate and aren't sure if they want to go with me, I give them my general ballpark figures for doing a design ($800-1200 is the average cost for small residential gardens and it moves up from there), some ref's, and addresses where they can view my past work. I am happy to talk on the phone for free.
Only took one a$$hole to pick my brain and use my ideas to DIY to make me rethink the free consult idea.
If they want to tire-kick myself and the competition, they can pay me for my time, and I will give them every idea I can come up with in that time, so even if they don't go with me for a design, they've gotten something from the consult that they can use with another person or on their own.
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02-19-2008, 10:05 AM
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Gold Oak Member
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Join Date: Jul 2005
USDA Zone 7
Posts: 268
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I charge a $75-85 flat consultation fee and most designs are a flat fee of $375-just enough to cover my costs and cull the time wasters. I don't refund design fees if I get the work.
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02-19-2008, 08:44 PM
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Gold Oak Member
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Join Date: Feb 2003
Location: Cape Cod
USDA Zone 6
Posts: 1,247
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Guys who have not tried this have to understand something going into it. That is that it will reduce the amount of leads that you will be able to follow up on. It does not bring you new higher end customers, but simply reduces your prospects to those who value you enough to pay the fee. You can't lose sight that the most important thing is to sell landscape jobs rather than collecting small fees. Don't let the fees get in the way of selling landscapes by over reducing your leads.
Paid consultation (I'm talking about introductory consultation rather than being retained to specifically lend guidance) is really reserved for people who start to get burdened by too many leads. It is more effective at saving money by not wasting time rather than being an income generator. Until you are in the position that reducing leads makes sense, it is hard to see how you stand to benefit by charging a fee for an introduction to a job.
If and when you get to the point where you are burdened by too many leads, which I believe those who are charging have, then you really need to use the fee system to cut the dead leads. You'll also lose a lot of good leads, but as long as you still are left with enough leads they will be very strong ones.
You have to earn the ability to have this work. Some of these guys have.
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