$99 a month

Discussion in 'Lawn Mowing' started by Bret's Lawn Care, Jun 9, 2005.

  1. Bret's Lawn Care

    Bret's Lawn Care LawnSite Member
    Posts: 122

    i tried out the $99 a month and got 9 calls from 400 flyers thats pretty GOOD RETURN RIGHT ? and all the lawns are about 1/4 acre lots within 7 blocks of each other
     
  2. pagefault

    pagefault LawnSite Senior Member
    Posts: 492

    That's a good response, but it reinforces the belief many have that the price is too low.

    I'm more interested in how complicated it may become. If I sign up on June 22, do I pay the same $99 as the guy who signed up on June 1? If not, is it prorated? Great, then why isn't November prorated too, since I don't get a whole month worth of cuts? How is it prorated? This impacts cancellations, too.

    Depending on when people sign up, they might get 5 cuts in their first month. If they cancel at the end of the month, after the last cut, then you only charged $19.80 per cut.

    If they cancel in the middle of the month, are you going to refund them based on the number of cuts that month or based on the number of cuts in the season?

    If it is by cuts in the month, you are refunding $19.80 if they had one cut remaining out of 5, but you are only keeping $19.80 if they had four cuts remaining out of 5.

    If you are refunding based on the total number of cuts per season, good luck. That means that if there are 26 cuts from the middle of April through the middle of October, a full season equals $693 for 7 months. This works out to $26.65 per cut.

    So, if a person signed up at the very start of the season and canceled after their cut on May 2, they would get a refund of $72.35 ($99-$26.65 for one cut). If they canceled after their cut on May 23, they would get no refund because 4 cuts at $26.65 equals $106.60. How would you explain this to them, when they paid for the month and had one week left?

    Maybe it would be cumulative. So, by May 23, they will have paid $198 and received 6 cuts (2 in April and 4 in May). The 6 cuts work out to $159.90, so they get $38.10 back. Sounds simple enough. Then, if they cancel after their 20th cut (end of August), they would have paid $495 and received $533 worth of work. They still owe you $38. If you don't collect, you're down to $24.75 per cut.

    I'm sure my dates are wrong, since I don't know how the seasons run up there, but the questions still remain. For my taste, it gets too confusing when you try to have a monthly fee when some months have five visits, some have four and some have only two or three.
     
  3. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    Pagefault, you just way way overanylized it. Its $99 per month. He didnt mention anything about per cut. Charging by the month is so much better, without all the confusion of did you do this or that.
     
  4. willretire@40

    willretire@40 LawnSite Bronze Member
    from VA
    Posts: 1,388

    i still have not tried this method even though i brought it up about 2 weeks ago. I need to go out and do it. So how long did it take you to get those 9 jobs and how are you going to bill them in advance or at the end of the month.
     
  5. willretire@40

    willretire@40 LawnSite Bronze Member
    from VA
    Posts: 1,388

    I think i am going to do the $99 a month thing but when they call it might be a little higher depending on size of yard. Atleast i will be getting them to call and then go from there.
     
  6. pagefault

    pagefault LawnSite Senior Member
    Posts: 492

    So what do you do if they start or cancel in the middle of a month?
     
  7. willretire@40

    willretire@40 LawnSite Bronze Member
    from VA
    Posts: 1,388

  8. Bret's Lawn Care

    Bret's Lawn Care LawnSite Member
    Posts: 122

    Sorry i've been busy. It took me 3 days to recieve my first call and all were between 2 days after that. The cancellations can't happen it says on the flyer (with season of service and fall clean-up) but the fall clean-ups are not included. but i got 3 more calls yesterday and now that makes 12 total out of 400 flyers and i'm flyering today.
     
  9. pagefault

    pagefault LawnSite Senior Member
    Posts: 492

    If they can't cancel, that simplifies things, although they can cancel, technically.

    What about if they start in the middle or at the end of the month? Is it still $99 for that month?
     
  10. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Posts: 2,116

    ++++The cancellations can't happen++++

    Oh, ok. Now I understand. Your customers can't cancel.

    Pagefault brings up some very good questions. You need to have a policy in place because customers will cancel. They will sell their homes. They will find someone cheaper. They will just decide to start doing it themselves. Whatever the reason, customers cancel.

    Later,
    DFW Area Landscaper
     

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