charge per cut or by the month

Discussion in 'Lawn Mowing' started by ChadsLawn, Apr 20, 2001.

  1. ChadsLawn

    ChadsLawn LawnSite Bronze Member
    Posts: 1,110

    How many of you give 2 bids on a residential lawn.Im trying this,this year..Ill give a per month bid and a per cut bid with the per cut bid to be a little more then a monthly bid.example $100 per month $30 per cut with??? Or what way has been more successful monthly or per cut??
  2. joshua

    joshua LawnSite Bronze Member
    Posts: 1,226

    personly that doesn't sound good to me. what if you have to cut the yard 5 times in that month (spring), you will lose money.
    bid the yard at what you think it's worth on a weekly basis, and bill them at the end of the month.
    or if you would like the money before hand tell them you will cut it lets say 5 times so they would pay $150. but if you cut it only 4 times then they get a cutting next month because they paid for 5 in the 1st month. do you understnad what i'm trying to say? good luck to you.
  3. Craig Turf Management

    Craig Turf Management LawnSite Senior Member
    Posts: 354

    I calculate the number of cuts per season, and multiply times the cost per service to arrive at the price per season. I give my clients the option of dividing that number by twelve, or paying for the number of visits each month at the conclusion of the month. I don't charge more money just because the client chooses to pay per cut. Why would you charge more? Just curious.
  4. John from OH

    John from OH LawnSite Member
    Posts: 144

    Craig is right, charge by the month or by the season. Mowing a lawn is like insurance that you'll be there. If you have a drought and you'er per cut, you have no income, but your overhead keeps coming month after month. We offer a 7% prepay if the whole season is paid for up front. After 3 years of using a prepay, we have 25% of our mowing gross in the bank right now. Our credit line is at 9% and I haven't had to use it yet. Price the interest on a new mower or a new truck.
  5. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    Bid by the cut only.
    So if the yard is $45.00, then it's $45.00 a cut, or if they choose to pay monthly it is $180.00.

    When my electric bill comes in monthly, I do not get the option of paying say for 6 months and getting a discount. I pay for the service as it is charged. No discounts.

  6. Guardian

    Guardian LawnSite Senior Member
    from Florida
    Posts: 269

    In Florida, we service our customers year round. Our annual contract calls for 42 visits per year. If its a $45 yard, multiply $45 x 42 =$1890/yr divided by 12 months = $157.50/mo. My discount to the customer for signing the contract is to lower that monthly amount to the nearest 9. Example $157.50 would be $149 per month ( they save $102 )
    So I am still really getting what I want for each visit, am guarenteed work all year and give the customer the perception of a lower price.
  7. cajuncutter

    cajuncutter LawnSite Senior Member
    Posts: 626

    I do the exact same thing. It comes in handy for larger yards..helps out on the customers pocket book and helps mine during the winter. I like to carry both...those seasonal customers come in handy when I need quick money at hand where as with the 12 month customers I know what to expect especially during the winter. Instead of rounding down to the 9 I usually keep the same price I come up with and throw in weed and feed for spring and winterizer in the fall and if it is really not bad with some I throw in a free gutter cleaning per season.. the customer likes this and will usually want you to do a couple of more during the season which is an extra 2 little coins :D
  8. David Gretzmier

    David Gretzmier LawnSite Gold Member
    Posts: 3,645

    The monthly year round clients save you in drought and winter, the seasonal give you cash when you need it- gas, employee and equipment buying time. do both. dave

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