Industry Glossary
Professional tree service terminology, pricing methodologies, and measurement systems. Understanding these concepts is essential for scientific pricing and operational excellence.
Measurement
TreeShop Score
A proprietary work quantification system that converts tree service projects into standardized points for accurate pricing. TreeShop Score accounts for tree dimensions, complexity factors, and site conditions to predict project duration and cost with mathematical precision.
MulchingScore
A specialized TreeShop Score metric for forestry mulching that quantifies actual work volume by accounting for both acreage and vegetation characteristics (diameter, density, terrain). Unlike traditional per-acre pricing, MulchingScore enables prediction accuracy within 1% without site visits.
StumpScore
A proprietary work quantification formula for stump grinding that accounts for stump diameter, height above grade, and grind depth below grade. StumpScore standardizes stump grinding pricing based on actual work volume rather than arbitrary per-stump rates. Modified by factors like hardwood species, root flare size, or stump deterioration.
AFISS System
Access, Facilities, Irregularities, Site, Safety - A comprehensive 80+ factor complexity assessment system that applies percentage multipliers to base TreeShop Scores. AFISS accounts for site conditions like narrow access gates, proximity to power lines, steep terrain, wetlands presence, and dozens of other factors that affect job difficulty and duration. This proprietary system provides competitive advantage through accurate complexity pricing.
DBH (Diameter at Breast Height)
Industry standard tree measurement taken at 4.5 feet above ground level. Used in forestry mulching package specifications (4", 6", 8", 10", 15" DBH limits) and tree removal calculations. Critical for determining equipment requirements and work volume.
Inch-Acres
A standardized unit measuring forestry mulching work volume calculated as: DBH (inches) × Acreage. For example, clearing 3 acres with 6" DBH vegetation = 18 inch-acres. This unit accounts for both area and vegetation size, unlike simple per-acre pricing.
Root Flare
The widened base of a tree where roots spread from the trunk. Large root flares add 20% to StumpScore because they increase grinding area beyond measured diameter. Common in mature hardwoods like oak. Requires additional grinding passes to reach specified depth.
Pricing
Burden Multiplier
Factor applied to employee base wages to calculate true labor cost including payroll taxes, workers compensation, insurance, PTO, training, and non-billable time. Most tree service companies only calculate base wages and wonder why they are not profitable. TreeShop's burden multiplier system accounts for all hidden labor costs to ensure sustainable pricing.
Profit Margin vs Markup
Critical pricing distinction: Margin = Profit ÷ Selling Price (percentage of price). Markup = Profit ÷ Cost (percentage of cost). A 100% markup only yields 50% margin. Most tree service companies confuse these concepts, leading to systematic underpricing. TreeShop's pricing system uses the correct mathematical relationship between cost, margin, and selling price.
Cost-Based Pricing
Pricing methodology that calculates selling price from actual costs plus desired profit margin. Contrasts with "market-based pricing" (copying competitors) or "value-based pricing" (charging what market will bear). Formula: Calculate all costs (equipment + labor + overhead) → Apply margin formula → Set price.
Herd Behavior Pricing
Industry anti-pattern where contractors copy competitors' prices without calculating their own costs. Results in systematic underpricing when costs increase (inflation, fuel, equipment). Primary cause of cash flow failure. Example: Forestry mulching still priced at $2,500/acre despite 20% inflation since 2020.
Services
Forestry Mulching
Land clearing method using specialized rotating drum with carbide teeth to grind vegetation into mulch in-place. Environmentally preferred over traditional clearing because it leaves beneficial mulch layer, prevents erosion, and eliminates debris hauling. Effective for vegetation up to 6-8" diameter (standard equipment).
Land Clearing
Heavy civil construction process removing all vegetation, stumps, and root systems to create buildable land. Uses excavators and skid steers to extract material completely (not surface cutting). Includes debris removal, site grading, and preparation for construction. Typical cost: $22,000-$40,000 per acre depending on density.
Stump Grinding
Mechanical removal of tree stumps using rotating cutting wheel with carbide teeth. Grinds stump 6-18 inches below grade, removing visible stump and allowing replanting or construction. Leaves wood chips that decompose naturally. Measured using StumpScore formula accounting for diameter, height, and depth.
Grind Depth
How far below ground surface a stump is ground during removal. Standard depth: 12 inches (allows grass restoration). Building sites may require 18 inches. Depth is a key StumpScore variable affecting work volume. Deeper grinding requires more time and creates more debris.
Equipment
Equipment Ownership Cost
Non-operating costs of equipment ownership including depreciation (purchase price over useful life), financing expenses, insurance premiums, and registration fees, all distributed across annual operating hours. Represents the per-hour cost of owning equipment before fuel, maintenance, or repairs. Often overlooked by tree service companies.
Equipment Operating Cost
Variable costs of running equipment including fuel consumption, scheduled maintenance, repairs, filter replacements, hydraulic fluids, and wear components, distributed across annual operating hours. Combined with ownership cost to determine total equipment hourly rate that must be recovered through job pricing.
Operations
Production Rate (PpH)
Points per Hour - The rate at which equipment and crew complete work measured in TreeShop Score points. For example, a CAT 265 forestry mulcher achieves ~1.3-1.5 PpH, while a larger Supertrak SK200TR reaches 5.0 PpH. Used to calculate project duration: Total Score ÷ PpH = Hours.
Loadout
Complete equipment and crew configuration for a specific service type. Includes all machinery, tools, vehicles, and personnel needed to complete work. Example: Forestry mulching loadout = mulcher + truck + 2 crew members. Total loadout cost = equipment hourly costs + labor costs with burden multipliers.
TreeShop Efficiency Score
Performance metric tracking how accurately companies predict their own project timelines and costs across all completed work. Calculated as percentage of projects completed within estimated time and budget. TreeShop maintains 99% efficiency. Industry average: 60-70%. Publicly visible metric for operational competence.
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