Per Cut, Monthly, Yearly...What's your take on it?

[Chilehead]

Here's how we roll......
All customers sign a contract. They have the option of paying in full each month for services performed, or having a 12-month contract with fixed monthly payments for all subscribed services. We have a clause that if there is inclement weather or mechanical troubles, and we can't make it out in time -- we will pro-rate the invoice for that month's service. Invoices are printed/mailed the 1ST of each month and are due on the 10TH. This has proven to be a very simple and effective system.

[cpllawncare]

Personally I never go with the cheapest stuff, that's why I deplore Wal-mart it's nothing but junk they sell, it's been over a decade since I last stepped foot in one, take one look at wal -mart and you will see what is wrong with this country. I hate these people that all they look at is cheap cheap cheap, I don't mind getting a deal but if I have to pay a little more to get what I want I will. I normally go with the mid range service or product it's usually the best value, I guess that's why I set my prices in the middle of the local market, I'm not the cheapest but not the most expensive either, just good quailty at a fair price. I keep forgetting that most of you guys on here are mow n go guys, we're not in that market, we're full service that's why $25/cut wouldn't work for us.

[Florida Gardener]

Originally Posted by cpllawncare

Personally I never go with the cheapest stuff, that's why I deplore Wal-mart it's nothing but junk they sell, it's been over a decade since I last stepped foot in one, take one look at wal -mart and you will see what is wrong with this country. I hate these people that all they look at is cheap cheap cheap, I don't mind getting a deal but if I have to pay a little more to get what I want I will. I normally go with the mid range service or product it's usually the best value, I guess that's why I set my prices in the middle of the local market, I'm not the cheapest but not the most expensive either, just good quailty at a fair price. I keep forgetting that most of you guys on here are mow n go guys, we're not in that market, we're full service that's why $25/cut wouldn't work for us.

Wal-mart is good for certain things like juice, soda, motor oil etc. again, why pay more for the exisct same product? Does auto zone offer something better for me to pay more for the same product? No. But, I agree that a lot of stuff Walmart sells is crap. I'm full service too. My cheapest account is $165/mo, and it's less than 1/4 acre. Very little grass. Most of my accounts are 400-500/mo.
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[cpllawncare]

I personally don't care, I'll shop anywhere but Wal-mart, I don't like the way they do business, they have run so many small business's out of business with their bullying tactics.

[jrs.landscaping]

Originally Posted by yardguy28

well clearly most in my market feel $45 as a min is excessively high for our neck of the woods.

personally I agree. like I said if you gave me an estimate of $45, I'd laugh in your face and tell you to take a hike. even if most others gave me the same price. for $45 I'll either do it myself or let it grow if I couldn't physically do it. or you can always find a neighbor kid to do it for it cheap.

I'd rather have a scrub knock it down for $25 than pay some some LCO almost twice that much just so it looks nice.

I'll never have a min higher than $25. I'd go out of business before I'd do that. $45 is ridiculously high for the yards I charge min no matter what the market is. for $25 they get edged, trimmed, mowed and blown.

What happens when that scrub or the neighborhood kid breaks his ankle on your property with no insurance and sues you? Geography is a major factor in pricing. If you came up here with a minimum of $25 you would be out of business in less than a year. Average lawn sizes are from .5 to 2 acres. Not trying to judge but why would you compare your rates to a scrub or the neighborhood kid anyways?

About Wal-Mart, isn't that how a business is supposed to operate? Use buying power and controlled overhead to provide a lower cost product to the consumer? Not many people ever complain about pharmacies, large aggregate suppliers, Car manufacturers or other major corps. run by shareholders who use the same tactics.

[kyles landscape]

i bill per time for everything i think it is the fairest way to conduct business for both parties and keeep the customers happy....everyone has the good and the bad customers, i have people who I can bill monthly no matter what i do so they can budget i have people who if i chagre them 100 dollars(25/cut) to cut 4 x aand only come 2x they expect that other 50 dollars in work somewere else in their yard or gutter cleaning etc. now if you have months were its crazy growing youd lose money but you wont at per cut.

Now say your monlthy and you usually cut this property on wed bc thats when you are out there well say the customer wants it dont sat this week for a party on sunday are you going to come out wed sat and again wed because thats what they are paying for?

[jrs.landscaping]

Originally Posted by kyles landscape

i bill per time for everything i think it is the fairest way to conduct business for both parties and keeep the customers happy....everyone has the good and the bad customers, i have people who I can bill monthly no matter what i do so they can budget i have people who if i chagre them 100 dollars(25/cut) to cut 4 x aand only come 2x they expect that other 50 dollars in work somewere else in their yard or gutter cleaning etc. now if you have months were its crazy growing youd lose money but you wont at per cut.

Now say your monlthy and you usually cut this property on wed bc thats when you are out there well say the customer wants it dont sat this week for a party on sunday are you going to come out wed sat and again wed because thats what they are paying for?

The customer gets the other $50 in extra work, you are right. They get mowed once a week on the same day. Exceptions are considered an emergency call and are billed accordingly. They are paying for x amount of services done x times per month. Ours usually include mowing, trimming, mulch, weeding, pruning, and for commercial we include pre em and non selective as well as trash cleanup. This isn't for every customer, my experience is it works better on the commercial end because they have better things to do than worry about their grounds. So everone was talking about the drought, this year on contract properties. We provided the extra services in the contract and when the grass needed it we mowed. If everyone would switch to contract it would make me a lot happier.

[yardguy28]

Originally Posted by jrs.landscaping

What happens when that scrub or the neighborhood kid breaks his ankle on your property with no insurance and sues you? Geography is a major factor in pricing. If you came up here with a minimum of $25 you would be out of business in less than a year. Average lawn sizes are from .5 to 2 acres. Not trying to judge but why would you compare your rates to a scrub or the neighborhood kid anyways?

About Wal-Mart, isn't that how a business is supposed to operate? Use buying power and controlled overhead to provide a lower cost product to the consumer? Not many people ever complain about pharmacies, large aggregate suppliers, Car manufacturers or other major corps. run by shareholders who use the same tactics.

you must have missed my post about location having something to do with it or the mods removed it.

he says his min is $45. ok well in his market that works. in my market min are usually $25. I realize location plays a part in your prices. you'd be out of business in a year coming here trying to get $45 for these $25 lawns.

I wasn't really trying to compare my prices to scrubs and neighbor kids. only trying to say his attitude about $25 being too low and that I along with the LCO's in my market can up that low doesn't apply in my neck of the woods.

we live in different locations and the attitude I have about paying a scrub or neighbor kid $25 to knock it down over an LCO wanting $45 is shared by most in my community.

personally since I live with my parents I charge them to cut the grass and there lawn is bigger than the min. they get charged $32 per week. which is an average amount for me. but I know I have enough $25 yards as well and if I lived in those places and someone wanted $45 they'd be laughed at and told to get lost.

the other thing him suggesting we raise the market is I disagree. $25 is a proper amount for those yards. I'm not about squeezing as many pennies as I can out of each client. I don't nickle and dime anyone. I charge a fair price for good quality work. I don't have the mind set of seeing just how much I can squeeze out of clients. I never price high unless I don't want the work. I always price fair and accurate.

like another post said. I'm not the cheapest and I'm not the most expensive.

[kyles landscape]

I've also seen people who charge for x amount of cuts and they provide x amount of cuts drought or soaking wet what's your opinion on that?
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[jrs.landscaping]

Makes sense, the market always determins price for all of us.