best way of going about converting by cut to monthly

Discussion in 'Landscape Architecture and Design' started by jbannick18, Aug 22, 2007.

  1. jbannick18

    jbannick18 LawnSite Senior Member
    Posts: 490

    I am in the process of changing most of my accounts from by cuts to a set monthly rate. Coming out of the growing season I feel alot of the customers are going to feel like I am ripping them off. I am thinking about making a general typed letter addressed to each address but I am not sure of how to put it. Could anyone help me out and give me some advice. thanks :)
     
  2. AJ Lawnscapes

    AJ Lawnscapes LawnSite Senior Member
    Posts: 322

    The best way to do it is to add up what you charge them by cut, and knock like $5 off the price for the month.

    In their eyes they are saving money, in your wallet you're getting a monthly income.

    Now granted, during the slow season when there is no rain, you can't charge them the monthly, or you do other things for them to keep them interested.

    Just my two cents.

    ==Abe
     
  3. Lawnworks

    Lawnworks LawnSite Fanatic
    from usa
    Posts: 5,407

    That is the whole point of doing monthly... they get charge reguardless what time of year, rain, no rain, etc.

    I would wait until spring to change them to monthly.
     
  4. scagwildcat

    scagwildcat LawnSite Senior Member
    from nw. ct.
    Posts: 507

    what about when the home owner dumps 200 pounds of fert. on the lawn and you cant keep up with it? theres pro's and con's to everything!
     
  5. MarcSmith

    MarcSmith LawnSite Fanatic
    Posts: 7,157

    JB

    Ihad my business in South orlando....you cannot change int he middle of the season....its not fair for everybody.

    I'd send a letter out with your contracts at the end of the years, explaining that you will be amortizing their payments. so inJanuary they begining paying for service., and they pay the same amount each month nomatter how many cuts they get. so let say you were getting $25 bucks a cut for a lawn, estimating 36 cuts per year that 900 buck or $75 each month for 12 months.

    I had a lot of people not really like it at first, but when they realized that it was better for them to be able to budget a set amount each month and not have to worry about that one 5 cut month that happens in the summer and really crews them up...

    guarantee them a minimum number of cuts... show them a basic schedule of cuts, IE 2 in january 2 in feb, 3 march, 4 april, and so on...Explain to them that by doing this you are locking their price for the entire year, Ie no increases or fuel charge increases.

    You will also need to put in a cancellation clause. some home owner may get tricky and hire you in january and then fire in sept after the hard stuff is done. You will still need to keep notes of when the grass was cut, just incase some one thinks that you ripping them off. It also makes billing easier as the bills don't change based on how many cuts.

    if you get an abnormally wet month, yeah you might cut the grass an extra time or two, but in the slow months you may be able to skip out on a cut or two to make up for it.

    law of averages it works out....
     
  6. jbannick18

    jbannick18 LawnSite Senior Member
    Posts: 490

    Ok thanks for the help everyone. I've been discussing it with a few customers and I have already got 2 who would rather do the monthly. I think its just easier for the customers knowing they have a firm price. Alot of companies down here do by cut so I am not pushing it as much.
     
  7. Daily Lawn/Landscape

    Daily Lawn/Landscape LawnSite Senior Member
    Posts: 694

    Why would you give them a $5.00 discount. Your not in the business to loose
    money. We set our customers up on a 9 mo program. Figure high on how many cuts for the year times your rate divided by 9 mo. Our customers love knowing they can budget their lawncare for the year. We also have some customers that are spread out over 12 months to fit their budget. You can also ad the other services you perform for them the same way, ie:shrubs, mulch, fert.& weed control etc.
     
  8. AJ Lawnscapes

    AJ Lawnscapes LawnSite Senior Member
    Posts: 322

    Good point, after reading this thread further.

    Thanks.
     
  9. CleanCutMowers

    CleanCutMowers LawnSite Member
    from SE MO
    Posts: 150

    Anybody have a contract or agreement that they use for this that i could see. Thanks
     
  10. mphillips4739

    mphillips4739 LawnSite Member
    Posts: 56

    You can go to www.gophersoftware.com . They have several stock documents you can download for free (contracts/service agreements/door hangers etc).:clapping:
     

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