Managing Open Proposals

by Katie Petersen | Aug 28, 2023 | Business Strategy | 0 comments

Managing Open Proposals

Written by Eric Petersen, CIC

Even the most successful sales arborists do not close every proposal they present every time. In fact, the majority of proposals delivered in the tree care industry are not accepted until days or weeks after the initial presentation. So how you stay in touch with your prospect during that time has a huge impact upon your closing rate. Here are a few things to consider when following up with a prospect on an open proposal.

Set Follow-up Expectation – Whether you hand deliver or email a proposal to someone, let them know when you will follow-up with them regarding the proposal. This takes some pressure off of them immediately and also sets the expectation of how you will work with them. This also does a lot more as it builds trust with the prospect, as long as you adhere to the expected follow-up time frame. People want to work with a tree care company that does what it says it’s going to do.

Immediate Confirmation – The best way to start the follow-up process on an open bid is to confirm receipt of the proposal immediately with the prospect. If you are hand delivering the proposal, this is obviously easy, however, more and more tree care companies are emailing proposals to their prospects. If you are emailing proposals, it’s imperative that you give a quick follow-up phone call to the prospect to let them know their proposal has been emailed to them. We know that most people don’t answer the phone any more anyways, so this call will most likely be a voicemail to the prospect. Doing this ensures that the prospect will know to look for the proposal and may eliminate confusion if the proposal gets stuck in a Junk Email folder. Obviously, this is the perfect time to also let them know you’re available for questions on the proposal.

Utilize Technology and Teamwork – Many tree care companies use automated email campaigns for marketing purposes, but few utilize them for sales management. Get your marketing and sales team together and have the marketing team explain the functionality of the software that you are using currently to the sales team. The sales team will then inevitably have ideas on what would help them stay in front of the prospects better. If you are a smaller company, chances are the marketing team consists of the same people as your sales team. That is totally okay as well and probably gives you more reason to spend a little time during a weather day to figure this out. Most of the CRM’s (ArborGold, SingleOps, etc.) will have technology available for you out of the box that can be customized relatively easily.

Internal Follow-Up Organization – Being organized with your open leads is a must as well. Included in many of the CRM’s will be a method of setting tasks or follow-ups to yourself as the salesperson to remember to check back with that prospect. Learn how your system works and become a dedicated user of that technology. It may feel clunky at first, but there is not one sales person in the world who can remember every single detail about each open proposal and when to follow-up next without help. If your company doesn’t have a CRM, create a simple follow-up spreadsheet in Google Drive (so you can share it with others if you need to) and ensure you enter information at the end of each day and look at it every morning during the work week to stay current with the prospects.

Use Testimonials – Using testimonials from happy customers during your sales process can give you a huge boost when looking to close more open proposals. If you don’t have testimonials from your own jobs that you’ve sold, work with other sales people to get a handful of testimonials from various job types. Insert these testimonials into an automated sales follow-up campaign or better yet, get them printed as postcards and mail them to your open prospects at a regular interval. If the testimonial states what type of work was done and how pleased with the job your team did, it will make it easier for the prospect to accept your bid.

Expiration Date – Like with everything, the prices you charge today, may not be the same as what you will need to charge in 6 months. Make sure when you are delivering a proposal there is an expiration date on it so they know that the price is locked in until that date. Some people may look at this as being gimmicky, but in reality it will protect you from a customer accepting a very old bid and expecting you to do the work at the proposal price. It also sets up a true closing date so you can take it off your open proposal list and move to a lost lead list. Too many sales arborists get overwhelmed when they have too many open proposals and then the follow-up to the real opportunities is hindered.

Communication and responsiveness with the prospect are the two keys to successfully managing open bids effectively. If you or your team is struggling with staying on top of the open proposals or with your closing rate in general, reach out to a member of the ArboRisk team and ask them about our Sales & Marketing Thrive Package. We will work one-on-one with your company to help you better your sales process and close more of the jobs you want.

Click here to obtain a copy of the Sales Sweet Spot worksheet to help you understand which services you offer fit best with your ideal customer.

Click here to learn more about our New Heights Package and how it can help you identify your ideal customer and services and grow your business!

What to Include on Proposals

by Katie Petersen | Aug 8, 2023 | Business Strategy | 0 comments

What To Include on Proposals

Written by Eric Petersen, CIC

When creating a proposal to sell tree work, it’s essential to outline the terms and conditions clearly to avoid any misunderstandings. While this list may not be all encompassing, here are some key elements to include in your proposal.

Scope of Work – Obviously, clearly defining the specific tree care services that will be provided on which trees is vital for the proposal. Be as detailed as you can about the type of service, the number of visits it will take to complete, and any limitations or restrictions that you may encounter along the way.

Estimated Completion Date – This may sound elementary, but since most tree care companies have a work backlog, communicating this to the prospect right away starts to build trust. Of course, you don’t want to underestimate this completion date as that can hurt your relationship as they will be expecting the work to be done by then, regardless of the extenuating circumstances that have arisen.

Exclusions – Clearly state any services that you are not performing or didn’t perform when creating this proposal. This is a very key part of the proposal as it will limit your liability if included and give you a chance to sell additional work in the future. Phrases like…

“This proposal was based upon a visual inspection of the tree from the ground. For a more complete tree risk assessment/appraisal contact your sales arborist to schedule with our team.” – OR – “This proposal only addresses the trees that are mentioned above and does not include recommendations on any additional trees that are on the property.”

Additional Services – I like to call this the Amazon Method section. If there are any additional services that customers typically buy together (think fertilization program with pruning services or planting a new tree after a removal, etc.) use this section of your proposal to show the customer what other people like them have purchased in addition to the described service on the proposal. Make sure it is clear that these additional services are only included for an additional fee so they do not think they are getting these for free.

Terms and Conditions – Include your terms and conditions within the proposal, so the prospect knows what items this proposal are contingent upon and what they will be responsible for. If you have any warranties/guarantees outline what is expected of the customer for these to be valid (think watering requirements for newly planted trees) and what the limitations are.

Insurance – This is a great way to showcase why your professional tree care company may be the better fit for your customer. Specify the insurance coverage that you carry and state that a Certificate of Liability Insurance can be provided upon request.

Signatures and Date – Ensure that both parties sign the proposal and include the date of signing.

Lastly, it is crucial to have an attorney review your proposal template to ensure it complies with local laws and regulations and protects the interests of both the tree care company and the customer. Remember, the proposal is going to be the document that your crew and the customer rely on to achieve a positive outcome on the project, so the more of these elements you can include, the better experience your customer will have.

Click here to obtain a copy of the Sales Sweet Spot worksheet to help you understand which services you offer fit best with your ideal customer.

Click here to learn more about our New Heights Package and how it can help you identify your ideal customer and services and grow your business!

Elements of a Fleet Safety Program

by Katie Petersen | Jun 19, 2023 | Safety | 0 comments

Elements of a Fleet Safety Program

Written by Eric Petersen, CIC

Most tree care companies address fleet safety within their overall written safety program, however, as I’ve seen the number and severity of auto accidents increase over the years, I always recommend to put the fleet safety items into their own document to draw attention to the importance of each item. So what goes into a Fleet Safety Program?

Here are some common elements of a Fleet Safety Program:

Safety Rules: Clearly defined rules outlining the expectations, responsibilities, and guidelines for safe driving practices within the fleet including a distracted driving policy.
Driver Selection and Record Monitoring: How will the tree care company select drivers and monitor their driving record. Developing a set of Motor Vehicle Guidelines to show what violations are acceptable and which ones are not is crucial to managing the drivers.
Driver Training: Outline what training programs or topics will be delivered to your employees. Topics should cover defensive driving techniques, vehicle handling, and awareness of potential hazards on the road.
Vehicle Use Policy: Who is allowed to drive your vehicles along with when and where? Develop rules to keep the vehicles your business owns operating for business work only. This is a large part of managing the risk that your vehicles bring to your company.
Vehicle Maintenance: Insert or develop regular maintenance and inspection schedules to ensure that all fleet vehicles are in good working condition, including brakes, tires, lights, and other essential components.
Telematics and Monitoring: If you are utilizing any telematics systems to monitor driver behavior, vehicle performance, and adherence to safety policies, you need to have a section in your Fleet Safety Program about this. This will outline what data is collected (it may involve tracking speed, harsh braking, or acceleration) and how it will be used.
Incident Reporting and Investigation: Establish protocols for reporting accidents, near-misses, and other safety incidents. Prompt investigation of these incidents helps identify root causes and implement corrective measures.
Communication and Engagement: Establish effective communication channels to disseminate safety-related information, updates, and reminders to drivers. Encouraging open dialogue and feedback from drivers helps improve the overall safety culture.
Continuous Improvement: Every safety program should include a section on how to provide regular evaluation and a Fleet Safety Program is no different. Identify areas for potential improvement, incorporate new technologies and best practices, and adapt to changing safety regulations and industry standards.

When instituted properly, these elements will create a comprehensive fleet safety program that prioritizes driver safety, reduces accidents, and protects the well-being of both drivers and the public.

If you are struggling to create a Fleet Safety Program, reach out to a member of the ArboRisk team today or sign up for our Thrive Safety Package here.

What Really Is Light Duty?

by Katie Petersen | May 26, 2023 | Employee Management | 0 comments

What Really Is Light Duty?

Written by Eric Petersen, CIC

I’m sure you’ve heard your insurance agent talk about the importance of having a Light Duty or Return to Work policy in place at your company (if your agent hasn’t talked to you about this, you probably should call us at ArboRisk, wink wink), but what does that really mean?

In short, a Light Duty policy is a risk management tool designed to keep an injured employee at work and productive which minimizes the impact of the workplace injury for both the employee and the business. It is a written policy that outlines the responsibilities of the employer and the injured employee after an injury occurs.

There are many benefits to having a written Light Duty policy which include:

For the Employee

Full Income – Even though the injured employee will not be doing tasks that they were hired for, they will retain the same level of pay that they were getting before the injury.
Guaranteed Work – The employee does not have to worry if they will have a job after an injury. The Light Duty policy guarantees that they will still have the ability to work their normal hours.
Remaining Part of the Team – The emotional aspect of an injury can definitely take a toll on someone. With a Light Duty policy in place the injured employee remains part of the team and can still feel productive.
Faster Recovery Time – No one wants to be hurt for a long period of time, so if the injured employee follows the recommended restrictions and does not overstress their body during the recovery time, they will heal faster. Doing tasks at work that may not be their favorite activity helps the employee take recovery more seriously to heal faster.

For the Employer

Reduced Work Comp Expense – If the employee stays at home and collects their wages from the Work Comp insurance company, that will obviously create a much larger claim and therefore increase the cost of the future Work Comp policies.
Gain Back Some Productivity – While the employee may not be performing the exact duties they were doing before the injury, the employer can still get production out of that employee. Every tree care company has a list of things they want to accomplish on a rain day or a snow day. Many times these items just remain on the list that someday they’ll get to. Use the Light Duty policy to get those items taken care of.
Faster Recovery Time – When an injured employee is doing tasks that they normally do not do, they typically will take their healing/recovery more seriously so they can get back out to work doing the job they love. Faster recovery time means a tremendous amount of savings to the employer.

The written policy should also include what happens to the employee if they reject the light or modified duty so that everyone knows what to expect when they are injured. This can be a very important piece if the injured employee is trying to stay at home and just collect from the Work Comp insurance company.

To make a Light Duty policy defensible in court, I recommend having each employee sign an acknowledgement form stating that they understand what is included in the policy and why it is important for them and the company.

Make sure that you have a copy of your Light Duty policy and a list of light duty activities in each truck right next to your injury reporting form so that the injured employee can take that policy and list with them to the very first doctor’s appointment. You want to make sure that the very first treating physician knows there is light duty available so they don’t needlessly issue a restriction prohibiting the employee from working at all for a designated period of time.

If you are struggling on coming up with a list of light duty activities start by thinking about your shop wish list or weather day list. From there start to get creative with what tasks an individual can do for themselves (think online training or volunteering) or for your company (assembling safety manuals, researching safety meeting topics, sharpening chainsaws, etc). Every tree care company has light duty available, you just have to put some conscious thought to it.

Of course, if you would like one-on-one help in creating a Light Duty Policy, please reach out to an ArboRisk team member or sign up directly for the Thrive Safety Package.

Why You Need D&O Insurance

by Katie Petersen | May 19, 2023 | Risk Management | 0 comments

Why You Need D&O Insurance

Written by Eric Petersen, CIC

Sure, you know that being a business owner is risky, but do you know you could get sued personally for the decisions you make for your company? Unfortunately, business owners of privately held companies can find themselves in a lawsuit from a business decision they made on behalf of their own company. Fortunately, you can protect yourself and the other officers of your company with a Directors & Officers Insurance policy.

Often referred to as a D&O policy, this coverage is typically associated with large publicly held companies or non-profits, however every private company has some exposure that a D&O policy can protect against.

A D&O policy is a liability policy designed to protect the personal assets of the directors and officers of a company if they are sued by interested parties for actual or alleged wrongful acts in managing the company. Employees, vendors, competitors, investors, or customers all could bring a case against the directors of a tree service for a decision or series of decisions that they make on behalf of the company.

The D&O policy pays for defense costs that the directors incur as well as any damages that are awarded as long as the lawsuit wasn’t from an illegal act. There are a number of reasons a director could be sued individually, however a few of the more common are:

Decisions that lead to financial loss or bankruptcy
Overstating company’s financial strength or assets
Poor use of company funds
Lack of company oversight (corporate governance)
Failure to comply with workplace safety and employee management laws

In today’s world there is more focus on personal accountability and more and more people are attempting to hold business leaders accountable for their actions. This happens not only from an employee or investor standpoint, but also from the customers and other competitors if the neglect is bad enough where they can show how they were financially damaged from the tree service owner’s decision or lack of action.

Tree care companies experiencing rapid growth also are subjected to greater exposure from these types of lawsuits as they navigate their way through all of the change that their company is going through. Most business owners have not been through rapid growth before and certainly make mistakes along the way. Sometimes those mistakes end up hurting others financially.

D&O policies have a number of coverages that can be included in the policy. For instance, many D&O policies will give have the option to include Employment Practices Liability for hiring/firing, discrimination and sexual harassment lawsuits. You may also be able to purchase Fiduciary coverage to protect the person in charge of the retirement account and company funds. Some D&O policies will also include Crime coverage, protecting the business from theft of funds or company assets.

Because each D&O policy is unique, make sure you talk through your concerns with your insurance agent or reach out to an ArboRisk team member today. If you are struggling with developing a risk management program for your company, check out our Thrive New Heights Risk Management Package today!