What Tree Service Companies Must Do To Improve Their Bottom Line

What Tree Service Companies Must Do To Improve Their Bottom Line

There are not one or two tree service companies out there.  Most likely, your neighborhood alone has five or more. You can just imagine the levels of competition you have to endure to keep your business afloat.

For this reason, you have to think outside the box if you wish to increase profitability and make a lasting name in the tree service industry. Start with the following tips:  

Invest in relevant technology and software programs

Nowadays, a range of business software programs, are available to help service companies run more efficiently and effectively. Whether you are a one-person company or a full-service organization with multiple crews, an appropriate software program can boost productivity in all areas of your business.

Software programs can make your operations more streamlined. For instance, work scheduling, billing, forecasting, and communicating with clients becomes easier. Some will even generate daily route sheets planned in geographical order and can be tailored to include notes about the assignments at each site, special instructions from the client, and a list of what tools the crew will need for the day. 

In short, when you have a proper program in place, automation becomes easier, making your tree care business more productive.

Analyze individual components and examine your options

Review the profitability of different areas of your tree care business, such as individual services, individual jobs, clients, geographic locations, etc. This will help you to zero on losers and winners.

Afterwards consider what actions you can adopt to improve your profitability. Your options may include but not limited to increasing service fees, reducing costs, or getting rid of unprofitable services. You should conduct a comprehensive assessment for each alternative, including designing scenarios for possible outcomes. Notably, there are software programs that can help tree services companies carry out this analysis efficiently and accurately. 

Never take your previous clients for granted

Your profits are not only affected by equipment and labor costs related to the job, but also by the investment you made in acquiring that client in the first place. That’s the reason why previous customers should always be a top priority for you.

The more jobs you can squeeze from a single customer, the higher your earnings for those projects as you don’t incur additional client acquisition costs.

As opposed to waiting for previous customers to come back to you, be proactive, and reach out to them first. Regularly, send them tips on how to care for their trees, thank them for ever-seeking your services, or reward them with discounts whenever they hire you again. This makes feel them valued and portrays you as the go-to person or company whenever they have issues with their trees.

Usually, this might be time-consuming; however, again, with the right customer relationship management software, reaching out to previous customers can be quick and easy. 

Hire good people and keep them

As the tree service industry continues to grow, getting competent employees might be a bit difficult. However, there are hard-working professionals out there. Your main challenge is to attract and retain them. Referrals have proven to be an ideal fit in such situations.  

Now, when they get to join your team, share your goals, and philosophies. This will demonstrate that you value them highly. More so, it will make sure that the employees buy into your company’s mission.

Providing uniform uniforms for your team will help portray a professional image and underpin the perceived value of your service. Don’t hesitate to pay a little more in salaries than your competitors, and eventually, your investment will pay off in minimized employee turnover and increased loyalty. Also, praise your team’s accomplishments but ensure you are sincere in your praise. 

Lastly, providing the right tools and equipment to your employees can have an incredible effect on productivity. Well equipped and motivated crews are always keen to give their best. Eventually, this translates to more return on your investment.  

Control overhead expenses

There are several unnecessary overhead expenses which usually run good tree care service companies into the ground. These kinds of overheads must be avoided at all costs. Take advantage of technology and software systems that automate routine tasks, such as email marketing, data storage, accounts payable, etc. Every two or three years, try to find updated quotes for insurance to ensure you are getting the best practices. Budgets must also be reviewed regularly to determine if cuts can be subjected to wasteful overhead expenses. However, as you make these cuts, only go for those that will not affect service provision or employee performance.   

Work on your customer service

Lousy customer service is among the fastest ways to hurt your bottom line. Poor customer service costs businesses over $62 billion each year. Without a doubt, this can cripple your tree care business, especially at the beginning.

Overcoming bad customer service takes a lot of effort. You need to come up with guidelines that your team can apply to deliver a consistent customer experience. Staff training and reminders are some of the practical ways to boost your customer experience.

Finally, Stay Ahead

There is always something “fresh and improved” lurking around the corner. Never get caught behind the proverbial eight balls or let your competition snatch customers from you.  Stay conversant with the trends in the industry and take steps to keep advancing. All the best as you implement the tips mentioned above!