Do you want to know how much money tree service owners make yearly? If YES, here are 7 factors that determine the profit margin for tree planting & removal businesses.
In order to have an idea of the amount tree planting and removal business owners are expected to make monthly or yearly, you should clearly define the job description of an established Tree planter.
A well – established Tree Trimmer and Pruner is expected to leverage on his sophisticated climbing and rigging techniques to cut away dead or excess branches from trees or shrubs to maintain right-of-way for roads, sidewalks, or utilities, or to improve appearance, health, and value of tree.
Prune or treat trees or shrubs using handsaws, hand pruners, clippers, and power pruners. Works off the ground in the tree canopy and may use truck-mounted lifts.
It is important to point that there is no one mold-fits-all when it comes to how much a Tree Trimmer is expected to make. There are some factors that we are going to look into before giving an estimate of how much an average tree planting and removal business owner can make yearly and these factors are;
7 Factors That Determine How Much Money Tree Planting and Removal Service Owners Make Yearly
Table of Content
- 1. The Size of the Tree Planting and Removal Services Business
- 2. The Location the Business
- 3. The Type of Complimentary Services Offered By The Business
- 4. The Management Style of the Business
- 5. The Business Approach of the Tree Planting and Removal Services Business
- 6. The Advertising and Marketing Strategies Adopted by the Business
- 7. The Number of Years the Tree Planting and Removal Services is in Business
- Estimated Profit Margin on a Tree Planting & Removal Business
1. The Size of the Tree Planting and Removal Services Business
One cannot conveniently state the amount a tree planting and removal business owners is expected to make yearly if you do not know the size of the business. One the average, the money a Tree Trimmer will make can range from between $17 and $35 per hour and also between $4,443.58 and $4,938.75 monthly depending on the number of customers they have.
A key factor that can greatly influence the money a Tree Trimmer is expected to make is if he chooses to operate in a location with people that can afford his or her services.
The truth is that you will struggle to make good money as a Tree Trimmer if you locate the business in an area filled with low income earners or in a ghetto. If you locate your tree planting and removal service close to a highbrow area or an area with loads of trees, you are likely going to make good returns from the business.
3. The Type of Complimentary Services Offered By The Business
Another important factor that will determine how much a tree planting and removal business is expected to make yearly is the type of complimentary services offered by the tree planting and removal business.
You will agree that the money a tree planting and removal business that offers a robust complimentary services that covers landscape architecture to landscape care and maintenance to trimming landscaping to landscape design to lawn mowing and maintenance, sale of flowers, spring cleanup, fall cleanup, chemical treatment and snow plowing et al will be far larger than what a tree planting and removal business that only offers tree trimming and removal.
4. The Management Style of the Business
Another key factor that will determine the amount a tree planting and removal services business is expected to make yearly is the management style of the business. Trust me, the results you will get when you are good manager will definitely be far different from a tree planting and removal services business with poor management.
The idea is that a good tree planting and removal business will not just retain their old customers, they will also keep getting new customers especially through recommendations.
5. The Business Approach of the Tree Planting and Removal Services Business
There are different business approaches that a tree planting and removal business can choose from and no doubt it will greatly influence the amount they are expected to make monthly and yearly.
Of course, we know that a tree planting and removal business may decide to work alone and do their marketing alone and they can also decide to partner with other business that will recommend clients to them. It is easier to find tree planting and removal services that partner with property management companies and government contractors who can sublet tree planting and removal services to them.
In essence, a well – organized tree planting and removal service that works with others will surely make more money than a solo Tree Trimmer and Pruner.
6. The Advertising and Marketing Strategies Adopted by the Business
Another key factor that will determine the amount a tree planting and removal services business can make yearly is the advertising and marketing strategies adopted by the business. Trust me, there are several advertising and marketing strategies that can help a business increase their earnings, but you may be expected to spend more.
But the results you will make will far outweigh the amount you spent on advertising and marketing. Of course, you don’t expect a Tree Trimmer that is engaging in aggressive advertising and marketing to make same amount yearly with one that is passive with its advertising and marketing.
7. The Number of Years the Tree Planting and Removal Services is in Business
In business, the number of years you are in existence will go a long way to determine the amount you will make. For example, in your first fiscal year (FY1) you might make one hundred thousand dollars ($100,000), in your second fiscal year (FY2) you might make one hundred and fifty – three thousand dollars ($153,000) and in your third fiscal year (FY3) you might make two thousand dollars ($200,000).
In conclusion, the amount a tree planting and removal services business will make yearly is strictly dependent on all of the factors listed above. Usually, tree planting and removal is not one of those businesses that someone can start and make big money from it without truly working pretty hard and smart.
Any entrepreneur who intends starting his or her own tree planting and removal service must be very creative and must be ready to go the extra mile to convince clients that he or she can deliver an excellent job.
Estimated Profit Margin on a Tree Planting & Removal Business
When we talk about the profit margin a Tree Trimmer is expected to make, we must establish the amount a Tree Trimmer charges per job and the amount spent or expenditure they put in to get the job done.
Individual tree service providers, as stated above, make between $21,000 and $49,000 per year. A tree service business, however, can make about $100,000 to $200,000 in annual gross income. After expenses are deducted, annual profit is around $50,000.
As expected, a tree planting and removal services business is expected to make about 50 percent and above profit margin from whatever they charge their clients. In some cases, it may be higher especially if the cost of carrying out the tree planting and removal services project is pretty lower.