BY ROD McDONALD

The Road to Success is a Landscape Trades business column by Rod McDonald, who shares inspiring stories, practical ideas and smart navigation tips for green businesses.

Time is money — that lesson I learned very quickly. In last month’s column I touched on estimating and the importance of being selective. When I started out in the landscape business in 1977, I took all requests for estimates very seriously. I completed them in the order in which they arrived and I never gave priority to any request, nor did I screen potential customers. I would complete three estimates each night, after supper. In the early part of spring, the phone would ring so often it could take three weeks before seeing the customer. Sometimes I would arrive to do an estimate only to find the work had already begun but the customer had neglected to cancel the appointment with me.

In the beginning, I figure I converted one out of every three estimates into a sale. As I matured, my conversion rate climbed until I was closing four out of five estimates. The increase evolved as I learned to screen and to prioritize my calls. Not everyone who called received an estimate.

CALL SCREENING

My first question was always about the time line. Did they need the job finished by a certain time, and could I meet that deadline? Every spring, I would get panic calls from people who needed a yard makeover because they had a garden wedding planned. One person actually called on a Tuesday when the wedding was planned for the following Saturday! More often than not, I was already booked months in advance and there was no room to fit them in.

I screened customers by asking what services they were looking for. Sometimes another firm was better suited for a particular job and I would pass its name along. I learned that you cannot be all things to all people. The most important question I learned to ask was how the caller had heard of my firm. Relatives, friends and neighbours of existing customers became priority estimates. People who were going through the telephone directory, calling everyone listed under landscape con- tractors, were never high on my list. If I ever received a hint that they were looking for a quick and cheap job, I told them they had contacted the wrong company. Defining who you are in the marketplace is a very important job that many con-tractors neglect.

ESTIMATING AND DESIGN

Over the years, I learned the difference between an estimate and a design. My estimates were free of charge, provided the customer knew what he wanted. If the customer wasn’t sure, then the project was turned over to our landscape designers, and there was a charge for that service. There was a time when the public balked at paying for a landscape design. Because of our industry’s professionalism, customers now see the value of design services and are willing to pay for it. On rare occasions, a caller would refuse to hire our designer or another independent design firm, insisting the design should be a ‘freebie.’ That was always a perfect indication that I should not pursue the business.

I knew a well-respected landscape contractor who preceded me by a generation. One of his favorite sayings that I have always remembered was “There are a handful of people out there who cannot sleep at night if they think you made five cents off of any work you did for them. You do not want those people as customers.”

BE SELECTIVE

Customer relationships are important. When you are young and dating, you learn you are better off not to date certain people, and that some people appear nice in the beginning, but soon change. Well, the same rules apply in estimating. You do not want to provide an estimate to everyone who asks because you do not want to work for everyone.

I was a founding member of our local Better Business Bureau and I think it provides a valuable service to our community. I always wished that contractors could have access to a ‘Better Customer Bureau.’ We could call in and check on our customers to see who is a chronic complainer, expects work for free, or doesn’t pay bills. That would make our job a little easier. There could even be a reality television show about customers from hell, just to balance out all the shows featuring unscrupulous contractors.

Once you agree to complete an estimate, your professionalism must be apparent. You should look neat and presentable, your vehicle should be clean and well signed, your business cards should be straight forward, and you should take notes. All of your estimates should be in writing on a basic estimate form. Never offer or accept a verbal estimate. The form should state what your estimate includes and what it doesn’t.

GET IT IN WRITING

Over the years I began to include more information in the estimate, like items that were discussed, but the customer had agreed not to include in the work. If a customer asked about an irrigation system or pruning a large tree, but opted not to proceed with that part of the work, it was noted as “Work does not include irrigation system or tree pruning.” Those notes always saved me grief. It is not that people are dishonest, but memory is never as good as you expect. A friend of mine started a home repair business in his retirement. He provided separate, verbal estimates to a customer for painting her kitchen and her hallway. She opted for only the kitchen and when he was finished, she argued the price had included the hallway. Had he written “price does not include hallway” into the estimate, he could have avoided the problem.

Once you and the customer have agreed on the work and the price, a realistic completion date must be included. Never promise a date that does not include allowances for weather or other unforeseen circumstances. The old motto of “under promise, over deliver” is imperative.

DIFFICULT CUSTOMERS

I always included a payment schedule within my estimate. For a smaller job, I took a 25 per cent deposit and the remainder upon completion. For larger jobs, I still took a 25 per cent deposit but I also included progress payments. One benefit with progress payments is that if the customer is experiencing financial difficulties, you will find out earlier. I have also found that a clearly written estimate and contract that includes deposit and payment schedules will scare away the less-than-desirable customer. Unfortunately, there are people out there who prey upon new and inexperienced contractors. They actually seek them out, hire them and rarely pay the full amount — everything is a negotiation. Experienced contractors usually know and avoid these customers.

Avoiding or reducing misunderstandings and difficult customers is important. I also learned to value my A-list customers. I had customers who were with me for years. They were loyal and easy to get along with. They paid their bills on time. They did not expect extra work for free and most importantly, they treated my staff and me with respect. These customers were worth their weight in gold. These people were the first to have their telephone calls returned and the first to receive an estimate. They were my bread and butter. They were also the people who recommended my firm to their friends and neighbours. To utilize a gardening metaphor, these were customers to be nurtured and cultivated. As my base of good customers grew, so did my company and it kept me on the road to success.

Rod McDonald owned and operated Lakeview Gardens, a successful garden center/landscape firm in Regina, Sask., for 28 years. He now works full time in the world of fine arts, writing, acting and producing in film, television and stage.