Service Area Map

Understandable, sure...good idea? Well, if you have FAR more business than you can handle, then yes. If not, then no. Simple.
 
For people that may not know, though the area may seem not so large, Nick's territory covers a lot of what can be traffic hell. I think I would be inclined to say that you will service outside your stated area under special circumstance. As Fred says, you never know what may turn up.
 
I think the goal is that if your going to work outside of your standard service area than make it worth your while. To cut down on the "shoppers" that are outside your normal service area you have to be very up front on the phone. You can let them know that the scope of the work has to be a certain amount for you to go that far. If drive time is accounted for properly, what is wrong with making the same hourly rate for driving as you would for removing a tree in a technical situation? Aren't there some extremely wealthy communities south of LA that would be profitable to work in?


I do like the idea of the map in general, and I think it is easy for the consumer to understand. I just think you have to be very careful on where you set your limitations.
 
Looks alright to me. Once we worked all over the Sydney area, now I stick mainly within about a seven mile radius and rarley go out of it.

Can't imagine the traffic in LA but if I went any further now I'd spend most of my time sitting in the truck.
 
I can't imagine the traffic in that area... I bet it is crazy. Our service area is 100 miles long and on average 7 miles wide. We spend a lot of time in Key West which is 50 miles one way. Years ago we did a lot of work in the upper keys because we had a salesman up there. Now, we rarely go up there. Victor (vl2007) covers that area very well but has some competition from not only Key's based tree companies but the mainland as well.
 
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  • #12
So, if I called you from Montebello, you'd kick me to the curb?

Yeah pretty much. About 30% of our calls denied because they are too far away.

That service area is about 20x20 miles. But keep in mind there are 3-4 million people living in it.

There will always be the potential for a big job outside our area....but I've decided it's just not worth it to look for them. We stayed booked up for a few weeks out usually. And I'm bidding strong and getting most of the jobs I bid.

There is potential for growth outside our area, but there is greater reward for wealth inside our area.

I will probably continue to shrink this service area. And if the past 2.5 years are any indication, we will still grow the company at a solid rate.


love
nick
 
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  • #15
I agree. We've done some jobs in malibu (which isn't THAT far at all) but we'd spend 3 hrs in the truck just for one job. That's not good for anyone involved.
 
I personally wouldn't show the customers a clear limit of your service area. To define that limit in your own mind makes sense, but to turn them away before they come could be risky. At some point, that ultra super high dollar long term contract could present itself. It is my belief that its better to answer calls and say its too far, then to entirely shut out those phone calls. You may hit hard times at some point and need to take on every job you can find. While your market seems vibrant and booming, all businesses at some point hit a tough spot. As your overhead rises, the damage that hard times can inflict also rises too. My advice is to absolutely not limit your phone calls. Limit which calls you are willing to bid, but never limit the calls. None of us have a crystal ball. You never know what might come down the line.

For example, I met a guy recently and got to shooting the breeze with him. We had nothing in common. The conversation was light and fluffy at best and I was eager to get back to what I was doing. I almost cut him off politely and got back to my task at hand. I was actually in his house helping a buddy install baseboard heaters(buddy was desperate for help on a Saturday and I owed him a favor or two). This guy asks me about what I do for a living. I told him. He then tells me he is in charge or operations at Sandvik nearby where I live. Tells me flat out he is very impressed by how hard I work and my professional demeanor while working in his home. Tells me they spend 80K a year on pruning, fall clean up, spring clean up, and hedge trimming. Then tells me he would like me to come to the plant and sit down with him and look over the numbers and if I can match the numbers or stay close to them(above or below), he would like me to take over and replace the current contractor. 80 grand a year from one account alone is a big deal to me. For some it isn't. In my market, it is. Especially for low liability, low overhead work.

My point is that I nearly closed a door and blew this guy off. Little did I know, a door was about to open rather wide for me. I encourage anyone not to close doors. Doesn't mean you have to go back and forth through those doors, but avoid closing them. It may also be wise to find a top shelf tree company in those regions that you are trying to avoid and refer the work to them. I don't know what its like in your market, but in my service area, there are a handful of us that are the main names that gobble up the bulk of the work. We kick each other work constantly. I kick so and so work because I hear they are a little slow, or because they can do a better job of it from their bucket truck. In turn, I get kicked a lot of referrals because some of those guys aren't interested in bigger trees that their buckets cant get high enough into, or they are too overwhelmed to take on more work. We rub each others back and often team up on jobs. Also, when one tree company suggests another, that's a big statement being made to the customer. They tend to have a lot of faith when one company says another is very good and to call them. So referring out work outside of your turf, might help generate even more work referred to you inside of your desired service area. I don't know for sure. It might be more competitive where you are. Here, we are pretty relaxed and amongst the group of established guys that dominate my service area, we hook each other up like crazy. Especially with asshole customers and jerks looking for bids, We have a way of making it tough for them to get a local bid.
 
Very good post, Chris. It is amazing what turns life can take sometimes.

Good on you for being patient enough to see where the conversation could go.
 
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  • #21
I can always change the map as needed- or remove it all together. . But imagine every third call is a 1-3 minute explanation of why I can't go to their house.

Right now I think it's best to focus on the sure bet. And if I go out to their house and DONT get the job, I haven't lost all that much. If I get one prospective client in Orange County, a mere 40 miles from me- it could be an all day affair to get there, look at one property and come back.

I'd rather not.


love
nick
 
You could always stack bids in a certain area and hit multiple in a day, so the potential time loss is not such a big factor. That and qualifying calls would probably take a lot of the guesswork out. Seems like your company is pretty niche and people calling you know what they want you to work for them(?). I have no idea though really though, we are in a town on 80,000 and traffic is basically a non-issue.
 
If you are staying plenty busy within that service area then I think it's a wise decision. Fighting traffic on long drives just isn't worth it on a regular basis.
 
Having just driven through your service area, I think it is a good idea. I've narrowed our service area quite a bit. Do you have good services that you know to refer them to outside your area? I almost always refer folks to someone else when they are farther away than I want to go. I may not get referrals back but I am in good graces with a lot of other tree services and the folks who call appreciate being directed to good services.
 
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