Below is an actual letter sent to clients of Landscape Details.

May 1, 2007

Dear Friends and Clients,

I have been asked recently about the cost of some items on the invoices I have sent to you. It appears that other landscape contractors charge much more than I charge for the same items. The two question to me have been, “Why are your Cost of Goods so Cheap?” and “Why are your Cost of Services so High?”

You are charged the wholesale price of the items and services I purchase for you. This includes plants from my farm, Gottlieb Gardens. Plants I get from Gottlieb Gardens are usually delivered free if I am installing them, or if the total charge for labor and plants is over $250.00.

I do not add on additional charges to these items unless there is a delivery fee included. In that case the fee is 15% of the total of the items purchased, or the time it takes to pick up the plants, (billed at $50.00/Hour), which ever is greater.

Prices for Labor
I charge $50.00 per hour for labor and consulting. I cannot estimate how long it will take to dig a hole in rocks, but I usually take 20-30 minutes per hole; when I find a place to start a hole. In sand or clay it usually takes a lot less time. How much time you will need my assistance is up to you.

I charge for the time it takes to acquire plants from sources other than my tree farm. I usually take 2 hours to obtain plants from Austin’s south side and 1 & 1/2 hours to obtain plants from San Antonio’s north side. While this sounds expensive, it is generally less than other companies that more than double the price of plants.

Example: Explanation of Fees and Basis of Bids by Some Landscape Contractors
Bid I: A contractor charges $35.00/hour for labor. He charges you double (or more) the cost of a tree he buys from me. If the tree he buys from me cost $65.00 you are charged $130.00 or more for one tree. To plant three trees it takes three hours and your cost would then be

Bid II: A second contractor charges $25.00 per hour for labor. She charges double for the plants she buys from a supplier. She adds *overhead fees, administrative fees, equipment fees, and mileage fees to the job site.

I charge $50.00 for labor for one hour to plant the same tree. The tree from my tree farm cost you the same price as I would sell to the other contractor – $65.00 and is delivered free.

Even if I take 2 hours to pick up the same three trees, the additional $100.00 brings the total cost of planting three trees to $445.00. You still saved $50.00 over the lowest bidder. If you add taxes to the others the savings is even greater! I know how these contractors operate; I have worked with them for years, both as a subcontractor and employee for other firms.

Guarantee
If I grow the plant and install the plant, I guarantee the plant, provided you take care of it. Most other contractors charge double their regular mark up to guarantee a tree. Labor to replant is usually charged in both cases.

As you know, I will work side by side with anyone to help you create your ideal landscape. This too saves you money, even if you choose to do some of the work, or purchase the plants elsewhere.

Finally I am asked, “Why do I charge a “Consulting Fee” instead of a labor fee for the total time I am on your property. The State of Texas makes me charge you tax for labor services. Because most of our time is spent talking, I charge a Consulting Fee, which is not taxed. This too saves you money!!! (8.25%)

I have been in business since 1980 and most all of my business comes from referrals. I appreciate your passing along my name to your friends. I hope this clears up some of the confusion with my “Invoice Fees”. If you still have questions, please call.

Thank You for your Concern,

David E. Will

Note: Most services cost $50.00 per hour. Travel and Expenses outside of Comal and Guadalupe Counties are not included.