Annual Mowing Agreement Discount: 10% or what?

Discussion in 'Lawn Mowing' started by Howie's Lawn Care, Sep 4, 2005.

  1. Howie's Lawn Care

    Howie's Lawn Care LawnSite Senior Member
    Posts: 512

    I'm trying to figure out my monthly rates on 13 condos I mow for next year. I have 8 other yards, but these condos are for the most part very close together and very close to my house (I dont drive until September 20th). I have 3 sets of three side by side, on directly across the street from them, 1 set of two, and one individual. I hate to admit it, but they are not all paying the same. I bought my $400.00 toro and $140.00 Trimmer and was very anxious to get I lowballed. The first two yards I got, I am mowing for only $10.00 a cut. Then I got 7 at $60.00 per month. I added another at $10.00...and she is beside a $60.00/Monthly customer. I then added one more $10.00 and another beside her. I told the lady beside her $10.00 giveing three in a row for $30.00 in 50 minutes. The lady said she would pay $15.00, $10.00 was too low in her mind (and mine). One of the customers found out about her neighbor being $10.00 and is upset. I think I'm just going to charge her $15.00 per cut until the end of the year. The neighbor I cut for $10 is very low on funds (had a stroke, medical expenses). Anyhow, I want to charge these customers $70.00/Monthly next year. Its going to be quite an increase for the $10.00 customers and customers may be upset after talking with one another (finding out that they overpaid, but only in comparison to the other customers, not literally). The guy that mowed them before me was 79, lived in one of the condos, and only charged $60.00/Monthly for mowing, trimming, edging, blowing, and SHRUB TRIMMING. Would it be wise to offer them the option to pay for the year upfront at a discount, say 10%. I plan on mowing only and for 6 months a year (april - september). I would just charge $70.00 for each additional month. Does this sound decent.


    Is a 10% discount alright or too much? How should I go about the price increase? I would have already raised some prices, but I'm sticking to what I agreed to. I don't think its right to change something you already agreed to. I know I could be working smarter, 2 for $30.00 instead of 3 for $30.00. Well, I'm ready for the critisism. Thanks for any help and advice in advance.

    -Nick Howard
  2. grassmanvt

    grassmanvt LawnSite Senior Member
    Posts: 906

    $60 a month minus 10%, why not tell them if they get all their neigbors to sign up you"ll do them all for free, I'm pretty sure you"ll make it up in :waving: volume.
  3. Mancinioldhorse

    Mancinioldhorse LawnSite Member
    Posts: 69

    Your hesitance to raise your rates, but, if you let the customers set your won't stay in business long. Decide on a fair rate..include your gas, your time, your string for the trimmers, your oil's obvious you don't have insurance (car or business)..but I don't care about that.

    I would not do anything for under 30.00 per hour if I had your situation....get your rate set, lets say it's 30.00 per hour..then divide by how long you take, Maybe...1/2 hr? =$15.00...but under no circumstances would I go below that...if you do you are working for free. Remember...soon you will be driving...then you will have to pay insurance..then you have more costs and folks will be upset if you have to raise it from the get go.

    My point is...Value your self...value your work...don't sell yourself short...just sell your work!

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