BEST OF THE WEB: Out on a Limb

Tree trimming is an attractive service addition for landscape contractors looking to expand their service menus and strengthen their bottom lines.

In fact, tree and ornamental care makes up about 5 percent of landscape contractor’s annual sales, and 17 percent indicated the service’s gross sales revenue grew from 2005 to 2006, according to recent Lawn & Landscape research. More than 54 percent of landscape contractors indicate they offer tree trimming and removal service and nearly 6 percent say they plan to begin offering the service in the coming year, according to the research.
 
So, do the rewards outweigh the risks? It’s a question Chad Freed, owner of Philadelphia-based Sycamore Landscaping recently posed to fellow professionals for debate on the Lawn & Landscape Message Board.
 
“Around here all of the big companies have a tree service division,” Freed posts. “I subcontracted out some tree work a few weeks ago and three guys made $2,200 in six hours. I was thinking of starting a tree division. Good idea or bad idea?”

STEEP COSTS. To do it right, a contractor will need to spend some money, says Todd Patton, president of Patton Property Maintenance in Heymarket, Va. Tree climbers, the guys getting into the trees to do the cutting, make very good money because the work is dangerous, Patton says. But a contractor needs to invest in the proper equipment in order to experience these benefits, posts George Iannaccone, director of operations at Innovative Designs & Maintenance, Syosset, N.Y. Landscape companies successful in tree trimming and removal need a decent chip truck, a basic chipper, something with which to haul wood such as a skid-steer loader, and a stump grinder, he posts. Altogether, Iannaccone says an interested contractor is looking at a $100,000-plus investment without buying a single saw, which he will need in multiple sizes.
 
“All the things that make short work of tree removal,” Iannaccone posts. “I know companies that show up to the job with over $250,000 in equipment.
 
Likewise, that doesn’t account for personnel costs, Iannaccone adds. “Just so you know, a good climber worth between $25 and $30 an hour will beat the crap out of a $500 climbing saw in a season. And this doesn’t including bars and chains.”
 
If a contractor stays away from heavy tree work and concentrates on pruning services, Iannaccone suggests a chipper and a dedicated chip truck will be a contractor’s biggest expense.
 
“There’s a lot of money to be made shaping pines, pruning fruit trees and especially formative pruning on young trees,” Iannaccone posts. “Theses are areas often neglected by many landscape companies and not always cost effective for the tree men with the big machines. You can do a lot of this work in the winter and you can get by with a 6-inch chipper or none at all.

INSURANCE IS VITAL. Then there’s the matter of costly insurance.
 
“Liability isn’t so bad, but the workman’s compensation sucks,” Patton posts. “Worker’s comp is a little more than 20 percent of payroll for us and some places are much worse.”
 
Iannaccone agrees, adding New York worker’s compensation on tree workers is in the neighborhood of 33 to 36 percent of payroll. Liability insurance, he adds, is still vital to a tree guy.
 
“If I hire you to prune my maple and two weeks or moths later the thing splits in half and kills someone… hope you have a good lawyer and lots of insurance,” he posts.
 
Despite the investment drawbacks, Patton posts tree work has been profitable for his firm and, although he’s raised his prices, he continues to sell the service. “We make out a lot better on the tree work than mowing, but landscaping is right up there with it,” he says. If you can sell the work for what it’s worth and then keep a crew busy, you’ll do well.”
 
Iannaccone posts tree trimming is a worthwhile decision if done correctly and suggests contacting the Tree Care Industry Association (www.natlarb.com) or a contractor’s local International Society of Arboriculture (www.isa-arbor.com) for assistance.
 
“You’ll find plenty of people who’ll be more than happy to point you in the right direction,” he posts.