Underpricing one tree removal job can wipe out profit from three good ones. The fix is a repeatable pricing formula your team can use every time.
Total Price = (Labor + Equipment + Disposal + Overhead) / (1 - Target Margin)
Example: If total cost is $1,200 and target margin is 35%, price = $1,200 / 0.65 = $1,846.
Labor: 3 crew x 6 hrs x $42 loaded rate = $756 Equipment + fuel: $170 Disposal: $140 Overhead allocation: $120 Total cost: $1,186 Target margin: 38% Final price: $1,913
Use structured estimating inside Quotes & Estimates, then track actuals using Time Tracking and Reports & Analytics so your next bid is more accurate.
Many operators target 30-45% gross margin depending on market, complexity, and demand. Consistency matters more than chasing one "perfect" number.
Add explicit risk multipliers for difficult access, power lines, crane requirements, and higher liability exposure.
Review quarterly, and immediately after large fuel/labor/disposal cost changes.
When your pricing model is consistent, your margins stabilize and your team stops making emotional quote decisions. Build the model once, then improve it with real data. Start your free trial if you want this workflow built in.
Founder of BidDesk
Kegan built BidDesk to solve the operational challenges he saw firsthand in the field service industry. He writes about business growth, operations, and technology for tree and landscaping professionals.
Standardize pricing, track actuals, and tighten profitability job by job.
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