View Full Version : Year round contract questions.
stevenf
01-11-2008, 03:18 AM
I know with bigger commercial property, lots of businesses charge the same rate year round even when they arent doing hardly any work during the winter. Is this the same for small, one man owned businesses? I wouldnt think so, but would like yalls opinions anyway.
I plan on working my a$$ off for any possible commercial property and I have found a really busy highway with tons of small businesses which would be good advertisment to passing cars. Just curious if yall set them up with contracts or agreements?
lawnman_scott
01-11-2008, 03:25 AM
yes, here it is the same for everyone. Flat monthly rate for all.
ponyboy
01-11-2008, 08:44 AM
thats the best way steady money through ouy the year, not the highs of the summer and lows in the winter good luck
stevenf
01-11-2008, 12:34 PM
Ok, Well, it doesnt snow here, and there are no trees anywhere near the businesses so leaves arent a problem either. What would you suggest doing during the winter? I would have to atleast show up.......
SpudsM15
01-11-2008, 03:48 PM
About 95% of our maintenance work is contracted. Set prices for everything equal monthly payments. This is the first season I'm adding surcharges for gas,disposal, & fertilizer. into the contracts. Commercial snow depends on the storm, res drives set price on those... So far everything has worked out for us this year we had a mini-droughts in the spring and fall so that saved alot of time on the grass cutting but i don't think we did any clean ups with dry leaves. So all in all I average a pretty steady rate per hour worth of work over the course of 10 months....
stevenf
01-11-2008, 07:56 PM
Rather then charging weekly all year round, has anyone thought of this....
Charge weekly for the 7 months of the year, then charge bi-weekly for the other 5. Add all of it together and divide it into 12 monthly payments. So a 12 month contract at $100.00 a service, would be $3,800.00 for the year and $316.66 a month.
Is this how yall do it or do yall charge a set weekly price even when your only there bi-weekly during the winter?
grass_cuttin_fool
01-11-2008, 08:34 PM
I have found out its easier to sell more upsells....fert...mulch and other stuff when you give a contract price and then divide it out by 12 months....just seems like less money to the customer which helps to sell more.....at least it does for me. True it takes longer to get my money ...but I may get some money that I might not otherwise
wayne
ed2hess
01-11-2008, 10:02 PM
Rather then charging weekly all year round, has anyone thought of this....
Charge weekly for the 7 months of the year, then charge bi-weekly for the other 5. Add all of it together and divide it into 12 monthly payments. So a 12 month contract at $100.00 a service, would be $3,800.00 for the year and $316.66 a month.
Is this how yall do it or do yall charge a set weekly price even when your only there bi-weekly during the winter?
As grass cutting fool described is the best way......you want these customers to get into a habit of paying each month and eventually they will do some autopay method. And yes we show up almost every week at commerical sites to blow off leaves and pick up any trash. Sometimes need to watch flowers and irrigation.
stevenf
01-12-2008, 02:12 AM
How often do yall add mulch to the flowerbeds?
grass_cuttin_fool
01-12-2008, 01:19 PM
How often do yall add mulch to the flowerbeds?
Usually once a year...if it gets to looking ratty...I will turn it which seems to freshen it up some
wayne
stevenf
01-12-2008, 01:32 PM
I know its different with larger places such as apartments, but what do you do for the small ones? It doesnt snow here, There are no trees on the main roads, grass doesnt grow during the winter....... How can you show up once a week for something like this?
grass_cuttin_fool
01-12-2008, 02:18 PM
For a lack of better words...when Im done with a property for year...they basically have a few months to catch up on paying me for what Ive allready worked for. Maybe not the best way to do buisness but it helps to spread the cost out to the customer and it looks cheaper to them. I also go by the property and see if a limb or something has fallen from a tree or to see if some one has thrown trash on the property....not a set time but if we have a windy day I will ride around and check them out
wayne
wayne
stevenf
01-12-2008, 03:09 PM
So you charge them for 35 or so cuts, 40+ total visits, and divide it by 12 monthly payments.
Is there any way they can cancel the services and you be out of the money or does the contract state this?
TheLandyman
01-12-2008, 03:11 PM
also like someone already said, for like fertilizer, weed control, new mulch things like that, you can take those costs and divide them by 12 months to make it seem cheaper for the customer but really its the same and you still get paid.
grass_cuttin_fool
01-12-2008, 05:26 PM
So you charge them for 35 or so cuts, 40+ total visits, and divide it by 12 monthly payments.
Is there any way they can cancel the services and you be out of the money or does the contract state this?
On my contracts I have a 30 day cancellation notice and any part of the contract owed is due at that time...whether its a refund from me or either the customer owes the balance in full. Be sure to keep up with your actual visits and the dates in case you need to do this sometime
wayne
SpudsM15
01-14-2008, 11:15 AM
We work from march to december. All our houses get billed 10 equal times. These houses also have snow clearing on them.
Figure out what the service will cost you. What you are going to offer in the service. That is what your total contract cost is going to be. Only bill for the months you work in I started billing all 12 months, but it is just more paper work. As for the condo complex's that we do which 90% of the time pay late I bill them from feb thru nov..
crazyman
02-08-2008, 08:25 AM
Once per year
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