Reduce the Risk of Losing a Lawsuit by 1/3rd

by | Sep 18, 2018 | Risk Management | 0 comments

Reduce the Risk Of Losing a LAwsuit by 1/3rd

Written by Eric Petersen, CIC

While attending an advanced insurance seminar recently, I learned that of all of the lawsuits that end in a jury or judicial award, 35% of them come from auto accidents (Bureau of Justice Statistics). When analyzing the incidents from our insured tree services we see the same pattern, where vehicular accidents are the leading cause of all claims.

This probably is not that surprising to you. Tree care companies obviously drive large trucks and equipment all day, every day to get to their work done. A small fender bender in a large truck typically produces more damage and more severe injuries than the same accident with a private passenger vehicle. Unfortunately, a lot of companies do not focus on limiting this huge exposure because it is just seen as a fact of doing business.

Below are the three most common ways to reduce your risk of losing a lawsuit by one third.

Hire the Right Drivers – Do you have a process in place to hire the best drivers? Start by developing a guideline for driving records and review the potential employee’s record at the start of the hiring process. It is not a secret why drivers with bad driving records pay more for their personal insurance, they are more likely to have another incident in the future. Once the applicant passes your written guidelines for their record, have them take a driving test with one of your vehicles. Assess their physical ability to operate your equipment safely. This not only can eliminate the risk of hiring a bad driver, it can also give you a starting point for training the individual.

Maintain Your Fleet – Are your trucks operating as safely as possible? Clearly, a well maintained vehicle is less likely to have a failure and cause an accident. So, create a maintenance schedule for each vehicle based off of the manufacturer’s recommendation. Whether your mechanic is in house or owns a separate business across town, make sure you keep a written record of the maintenance done to each truck and trailer so that you can prove the steps you took to minimize an accident from mechanical or equipment failure.

DOT Compliance – Do you know what you are required to have in place from a Department of Transportation perspective? If you are operating out of compliance and a serious accident occurs, judges and juries will have an easier time awarding a large settlement. Look for a separate article specifically on DOT compliance in a few weeks.

If one of your team members is involved in a serious accident, the judge and jury will look at what types of measures your company took to prevent the accident in the first place. If you can prove all three of these points above, your company will have a much better chance at winning the lawsuit or minimizing the settlement. And speaking about the settlement, make sure you purchase adequate liability limits on your Business Auto policy that will allow you to remain in business if a terrible accident does occur.

For more help with your safety program and/or tree care company, contact ArboRisk to learn more about our Thrive Safety Package!

Do you Have the Right Work Comp Policy?

by | Aug 30, 2018 | Risk Management | 0 comments

Do You Have The Right Work Comp Policy?

Written by Eric Petersen, CIC

Almost every day we are asked, “How can I lower my Work Comp cost?” While the answer for each tree care company is specific to their situation, examining the type of the Work Comp policy is one way to lower the cost. Below are the most common types of policies that are available for tree services.

Now because Work Comp is regulated at the state level, each state operates a little differently, so unfortunately, some of these policy types may not be available in your state.

Guaranteed Cost – The vast majority of tree services have this type of WC policy. A Guaranteed Cost policy gives the insured company confidence in the total cost of the policy. The rate is set at the beginning of the policy period, payments are made, then the premium is adjusted at the end of the policy term according to the actual payroll the tree service incurred during the policy. Injuries only affect future policy premiums, not the current policy year.

Dividend – A Dividend policy acts exactly like a Guaranteed Cost policy throughout the year except the policy holder has a chance to earn some of the premium back after the policy year is over. This premium that is given back to the policyholder is called a dividend. Dividends can be either a set percentage of the final premium (called a Flat Dividend) or a sliding scale percentage based on the claims that happened throughout the year (called a Variable Dividend). The dividend amount is negotiated with the insurance company before the start of the policy.

Depending on the size of your company and the strength of your safety program and financials, you may want to consider the following Work Comp options. These plans are much more sophisticated and require a strong understanding of the risk/reward involved with them.

Deductible – Deductible Work Comp policies also utilize the Guaranteed Cost policy format except they contain a provision for a deductible. The Work Comp deductible works just like any other insurance deductible, where the insured tree service pays the first amount of a claim and the insurance company pays the rest. This can be a small dollar figure like $1,000 or a large amount like $100,000. An aggregate (per year) deductible can be negotiated at the beginning of the policy to cap the out of pocket expenses.

Retrospectively Rated – With a Retrospectively Rated Work Comp policy, the insured tree service pays a fixed cost throughout the policy period and then the premium is adjusted at the end based on the claims that occurred. This plan setup offers the greatest potential savings but also could be the most expensive depending on how the injuries unfold for the year. There is a minimum and maximum premium assigned at the start. A common minimum premium would be 50% of the Guaranteed Cost while the maximum could be 150%.

All types of Work Comp policies are designed to finance the injuries that occur within your organization. Selecting the type that fits your company best can be complex, however, the rewards of better cash flow and lower cost can be well worth it. For more assistance with your Work Comp policy, please contact an ArboRisk team member today!

5 Ways to Combat the Imposter

by | Aug 24, 2018 | Business Strategy | 0 comments

5 Ways to Combat The Imposter

Unfortunately, the tree care industry is an over-commoditized industry. A simple Google search in your area will probably show so many tree services it will make your head spin. So how do you compete against the non-professional guys; the ones that aren’t playing by all of the rules and paying cash for labor, not purchasing insurance, and skipping on safety? It is not an easy thing to do, but below are my 5 ways to combat your competition.

Don’t Create the Price Game – Believe it or not, the price game is created by tree services, not the customers. Companies that come in and say that they’ll do the work cheaper than anyone else are the ones who devalue the work that you do. Fight this by getting to know your customer and what their goals for the property are. Do they want a backyard oasis to play and relax in? Are they concerned about a branch falling on their house or children? Whatever their concerns are, focus your solutions around those. Everyday consumers choose certain brands over others and choose to pay more for those products or services because they believe in the value of it. Tree work can be the same way, but you have to believe in your value and know how to communicate it to the customer.

Specialize – What does your company do particularly well? Are you known for a specific service in your area? If so, concentrate your sales efforts on that service as it is much easier for you to explain why you are the better choice than a non-professional tree service. You also should be able to do the work in your specialty more efficiently than your competitors, thereby increasing the value to your customer.

Use Technology – What does your Customer Journey look like? Have you thought about the experience that your customers have each time they come in contact with you? There are many software programs out there to help you make your business stand out: from automatic follow up emails such as Active Campaign, to video email software like BombBomb, to creating proposals for the customer (while still at their house) using Arborgold. Each of these tools will help showcase the level of professionalism that your company has over your competition.

Use Pictures – Examples of poor tree maintenance are all over the place. With digital cameras in everyone’s pocket these days, you should be able to create a vast library of local trees that have been hacked at by an inexperienced tree service. Use these photos, along with before and after pictures of proper tree care, in your presentation to your customers. Your proposal should not be lengthy and full of technical details, but rather clean and crisp, showing what you intend to do and how it will help the customer reach their property goal.

Promote your Professional Designations – Are you touting your designations? Bragging about your credentials is not something that many people are comfortable doing, however when trying to separate yourself from a low bid competitor, you must be able to do so. ISA and TCIA both have great resources that allow you to show why your education and commitment to your industry makes you the best choice for your customer. When the property owner understands that you invest time and money into improving your own company’s professionalism, they will begin to see the value that your expert opinion brings.

Competing against illegitimate businesses is one of the most common challenges within the tree care industry and unfortunately, this problem is not going away. Use these 5 tips to begin to separate your tree service from the rest.

Written by: Eric Petersen

Unlock Your Potential: 4 Steps to Cross-Sell More Business

by | Aug 24, 2018 | Business Strategy | 0 comments

Unlock Your Potential: 4 Steps to Cross-Sell More Business

One of the most common goals that I hear from our clients is the desire to sell more Plant Health Care work, so I put together my list of 4 steps to effectively cross sell additional services to your customers. Whether you would like to perform more tree risk assessments or sell firewood and mulch to your existing customers, the approach is essentially the same.

Targeted Service – Defining what service you are looking to cross sell to your current customers is the first step. To determine if a particular service is appropriate to begin a cross selling campaign, ask yourself the following:

Is this service a strength for our company? If not, what will help it become a strength?
Can we handle an influx of additional requests for this service?
What challenges could arise if we have increased interest in this service?
Are we known for this service already or do we have to educate our customers?
Does our ideal client need this service on a regular basis?

It Is Not About the Sale – It is very important to understand that cross selling additional services should NOT be strictly about the revenue generated from the new service. Instead, the focus should be on the relationship with the customer. When customers hire your company for more than one service or product you will generate much more customer loyalty. These loyal customers will become your promoters and tell others about your organization, driving growth within your ideal clientele.

Training – Not everyone is meant to be a sales person, however, everyone within your organization that has contact with your customers should have a basic understanding of the services you provide and how it can benefit your customers. From the receptionist to the crew foreman, train your team members on the “why” your services are important. A few ideas to help your employees begin a cross sell conversation are:

Emphasize that healthy trees eliminate hazards to your customers and help increase their property values. Proper tree care is much more than pruning and a Certified Arborist can help your customer determine the course of action for their trees.
Use an Amazon approach: Whatever your cross sale service is, combine that with what your ideal client would also purchase for an easy transition into providing additional services. For example; those that have had their trees pruned, also have their trees fertilized. Or, those that have their trees removed also purchase firewood from us.

Reward employees for cross selling additional services. Create a monetary reward for a team member that goes beyond their normal job duties to cross sell your desired service.

Special Offer or Pricing – If your desired cross sell service is new to your organization or one that your customers rarely request, you probably will have to create a special offer or pricing structure to gain interest in the service. This can be a limited time offering for trunk injections or a multi-service discount if they also purchase mulch from you. Be creative with the offer to engage your customer into taking action with your desired cross sell service.

Cross selling additional services to your current customer base can be the hidden secret to growth for your organization. Use these 4 steps to unlock your company’s cross sell potential.

Written by: Eric Petersen

4 Ways to Tell if your Marketing Strategy is Actually Working

by | Aug 21, 2018 | Marketing | 0 comments

4 Ways to Tell If Your Marketing Strategy Is Actually working

Before I share with you how to know if your marketing strategy is working, you must actually have a marketing strategy. To me, having a marketing strategy means promoting your business in defined direction to achieve growth. This includes a clearly stated revenue goal from a specific set of services and clientele. If you haven’t developed a strategy yet, check out our white paper, 3 Ways to Branch Out Your Marketing. Let’s face it – your strategy won’t be perfect right away and will certainly evolve over time, but establishing a desired result and way to achieve it is vital to begin.

Use the following 4 ways to ensure your marketing strategy is functioning the way you want it to.

Website Visits – The first place someone goes to find out information about your company is your website. It doesn’t matter if they were referred to you or found you through one of your marketing pieces. Your website is your chance for a great first impression. If you are confident about your website, begin to track the number of visitors to your site by using Google Analytics. This tool can break out where the visitors are coming to your site from and how long they stay on it. If you haven’t spent time updating and refreshing your website, check out our 5 Tips for a Better Website and make your website a priority.

Click Throughs – Your website must have a “Call to Action” on it to allow your customers to request a proposal for tree work or purchase firewood/mulch directly. When your website is set up correctly, the number of click throughs are easy to measure. You can also create custom landing pages specific to one service and track results from each specific page.
Closing Ratio – This is more of a management metric than a pure marketing metric, however, if you see that your company is getting more chances at jobs, but you do not see an increase in sold jobs, training of the salesperson may be a solution you need to explore.

Job Analysis – Each month it is very important to look back at the jobs that were finished and analyze them around the questions below. Give a score to each job to track how well these jobs are fitting within your goals for your organization. Each “YES” answer earns 1 point. Your goal is to have as many 3 point jobs as possible.

Was the work performed a targeted service?
Was the client within your targeted clientele profile?
Were the jobs done within the time budget set by the salesperson?

Now that you understand some of the data that will help you determine if your marketing is working, you must start tracking it. Use the current month to establish the benchmark for each of these areas and work towards improving on them every month into the future. After tracking these for a few months, you will begin to see clearly what you need to improve upon. Make sure you share this information with your team so they can take some ownership into improving what they do to move the organization forward.

Of course the ultimate goal is to perform more jobs within your targeted services, for your targeted clientele, and done on time and within budget. When this starts to happen and everyone on your team begins to realize that your company is growing intentionally, you will see the momentum pick up and your business will rise to the next level.

Written by: Eric Petersen