combining season rates

Discussion in 'Lawn Mowing' started by Mike M, Feb 20, 2006.

  1. Mike M

    Mike M LawnSite Bronze Member
    from usa
    Posts: 1,947

    I got some good ideas here about charging by the season with a fixed monthly rate. Why didn't I think of that before? :hammerhead:

    My question is, does anyone combine a lawn treatment plan into this, and hedges, clean-ups, etc., under one rate divided out monthly, or is it best to sell and bill add-ons separate, as they come up?

    I imagine this model works best after one full season per customer, so you know how much time and materials are invested. If I was staying in PA, I'd do things so differently this year!

  2. lawnspecialties

    lawnspecialties LawnSite Silver Member
    Posts: 2,513

    Most of my residentials have a yearly contract. It not only includes cutting but also aeration, fertiliziation, overseeding, pruning, etc. All this for one monthly price.
  3. Mike M

    Mike M LawnSite Bronze Member
    from usa
    Posts: 1,947

    That's impressive to have it all bundled! Seems beneficial in many ways and much more professional.

    For the last three seasons I was charging as I went along, and selling every add-on as they came up. It's no wonder I was tiring of add-ons!


  4. heather lawn sp

    heather lawn sp LawnSite Senior Member
    Posts: 681

    We do mostly commercial but have been doing 12 month contracts for 15 years. We will custom the contract to individual needs and price accordingly. Before renewal time the proposal goes out with the list of services to be done in the upcoming year along with the price for the year. Payments are divided by 12 and monthly payments are billed out of that amount. Any extras that come up are priced & approved before services are started. It gives them a budget for the year and us a gauranteed income. Any changes in cost along the length of the contract are our problem. Any savings because of increased efficiency are our benefit.
  5. beautifullawns

    beautifullawns LawnSite Senior Member
    Posts: 313

    Our commercial contracts include every service in a contract that gets paid over 7 equal installments. A lot of cutomers have chosen year round service (plowing included) with a 12 month payment plan. Works out great.
  6. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    Same here as Heather and beautiful. It's nice knowing that all the payments are covered all year, including the winter so you don't have that hanging over your head.
  7. cklands

    cklands LawnSite Senior Member
    from MA
    Posts: 360

    I do this by adding up all their services for the year and dividing that number by 9 payments. Not all of my customers are set up this way. I give them the option to do this for budgeting purposes.

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