BEST OF THE WEB - Time Is Money

Customers can be fickle. They often seem interested in hiring landscape contractors for projects only to back out in the end because of price or simple indecision. This creates headaches for contractors who spend hours figuring estimates or designs.

A recent thread on the Lawn & Landscape Online Message Board questioned whether landscape contractors should charge for designs, consultations or estimates. Most agree that designs and consultations require enough time and effort to warrant some type of price tag.

"Designs involve time, creativity, experience, formal education and knowledge," writes Andrew Aksar, owner, Outdoor Finishes, Walkersville, Md. "There is no way we will offer our creativity and experience for free. You cannot bring back time."

Mike Kulp, owner, Grass Roots Landscaping, Broadway, Va., agrees that contractors should charge design fees but notes that he doesn’t charge for estimates. "On the smaller jobs, I don’t sweat it," he writes. "I just make an appointment for when I’m in the area, and it doesn’t take much of my time."

Kulp adds that he has an effective system for weeding out price shoppers by asking what their budget is, which typically chases away the "tire kickers."

MONEY TALKS. While most contractors agree that design and consultations should come at a price, opinions varied on how much to charge. Aksar’s design fees generally start at $500 and go up to $1,500 for jobs in the $20,000 range. He charges $25 to $40 for the initial consultation, which he uses to attract only serious prospects, he says.

"Today, a guy phoned about an estimate for a patio," Aksar writes. "I could tell he was serious about doing the work, but I still informed him that there is a $30 fee for me to come visit him. His reply was, ‘No problem – I’ll have the cash ready.’

"Then, 5 minutes later, a guy called about a retaining wall replacement, and he said, ‘We just want an estimate,’ so I informed him that there would be a $30 fee. His reply: ‘I’ll talk to my wife and get back with you.’ He hasn’t called back."

Other participants say design fees give companies credibility. "It’s a perceived value, too," Kulp writes. "It’s kind of like putting furniture in your yard with a ‘Free’ sign. No one wants it. Put a sign on it that says ‘$100’ and someone will steal it in no time."

Aksar explains that the $30 fee saved him 40 minutes in wasted drive time, 30 minutes of client meeting time and 30 minutes of job-costing and proposal-writing time and postage costs for that one client alone.

Another Message Board participant says he charges a $125 to $150 design fee, and Turf & Shrub Management, Dartmouth, Mass., charges $45 for a 30-minute turf, tree or shrub consultation, says Owner Ken Reis. Advanced Applications, Deerfield, N.Y., doesn’t charge design fees but does charge $200 per hour for consulting, says Owner Robert Shauger.

But in another Message Board discussion on a related topic, Sal Mortilla, owner of Long Island, N.Y.-based Landscaping Unlimited, says customers in his region aren't receptive to fees.

"If anyone tried to charge a fee for an estimate in New York they would be sitting home all season," Mortilla writes. "The average potential customer here on Long Island gets three estimates. There have been many times that we were the seventh, eighth or 10th in without knowing it and still got the job.

"I think it’s the presentation and what you can offer for the price you quote that matters," he adds. "Of course, personality plays a big role in the selling factor. The general rule we follow is we don’t care how many bids or estimates a person gets, we do ask, however, at the time of appointment if they received other estimates. This gives us a great advantage as it tells us what the competition is trying to sell and for how much. I can then modify the presentation."

SCRAP DESIGNS? John Palasek, owner, JonKar Design Group, Yaphank, N.Y., says some design fees seem exorbitant because he doesn’t always need an intricate blueprint to show clients. "I’m still trying to get my head around someone charging a $1,500 design fee for a $20,000 landscape," writes Palasek, referring to Aksar’s design fees. "I can, and have, come up with a design for a $20,000 job in my head. For the life of me, I can’t think of a single $20,000 job that would require $1,500 worth of design work. But hey, if you can get away with it, more power to you."

Aksar responds by writing that designs should be detailed plans that show customers exactly how the project will unfold. That way there’s no confusion between the client and contractor when the project is finished, Aksar says.

"Would you build a home without a plan?" he asks. "Would you build the foundation, then decide where to put the master bath? Then once that’s done, maybe figure out where the baby’s nursery is going? That may work for some, but from a busy-pace perspective of a landscape professional, we don’t have the time to
ad-lib."

But with computer imaging today, detailed designs aren’t always necessary, according to Palasek. Designs are useful for showing architectural designs, but decorative features such as plantings, waterfalls, pergolas, walks, walls, ponds and patios are displayed better through imaging, Palasek says.

"I rely a lot on imaging as a means of getting my point across and frankly those who can’t see its value either don’t know how to use it or are not artistic enough to make it sing," Palasek writes.

However, Aksar explains that imaging is not scaled and that when planning for features, contractors need a detailed plan. "I don’t see many Wal-Mart stores built off of an image," he says.

Once the basic measurements are determined, Palasek can develop a materials list without much effort. "If you’ve done similar jobs, then you already have a basic plan to the customer," he explains. "But what gets their attention in the first place is the rendering. Scaled plans are helpful but not always necessary."

BAKED-IN BILLS. For contractors who are hesitant about upfront charges, some suggest refunding fees or including the design or consultation costs in the actual estimate.

"Those of you who do not want to refund design fees, why can’t you just ‘refund’ the fee for them and then bake a portion of the design fee into the price of the install?" asks Chad Stern, owner, Mowing & More, Chevy Chase, Md.

But Aksar cautions that by using this method, contractors risk getting nothing. "If you bake fees into the job cost, then how do you recover the money if you do not get the work?" Aksar writes. "The only time you can bake fees in is when a client gives you a deposit for the whole job up front on the spot."

If contractors do "bake in" fees or do not offer a refund, another Message Board writer asks if the client owns the designs even if the contractor doesn’t get the job. Aksar responds by writing: "You get what you pay for. If you pay for something, it’s yours. Once our clients pay for the design, they can elect to do the work themselves, shop around with other contractors or have us do it 24 months later. It’s tough to charge someone $1,250 for a design and then say, ‘Oh, you can’t keep this unless we do the work.’"