Contract Account Discounts

Discussion in 'Starting a Lawn Care Business' started by ken50, Apr 24, 2004.

  1. ken50

    ken50 LawnSite Member
    from tx
    Posts: 142

    I have just started, and have about a dozen accounts right now, but none of them are contract accounts. When you guys go out and get accounts that pay year round on a monthly basis, how much of a discount do you normally offer? If you would charge, say, $45/cut biweekly, what would u charge on monthly basis year round? Or, do you even offer a discount?

    Thanks
     
  2. Trevors Lawn Care

    Trevors Lawn Care LawnSite Bronze Member
    Posts: 1,180

    Get all of them on contract. You wont get paid otherwise.
     
  3. ken50

    ken50 LawnSite Member
    from tx
    Posts: 142

    Well, so far, Trevor, they pay me at the time of service, but I agree with you, I would much prefer to just get that check in the mail every month. Problem is, around here, the ones I have spoken to so far are resistent to the monthly contracts. That is why I was wondering how much of a discount, if any, is normal...
    Thanks for the reply....
     
  4. gator-town

    gator-town LawnSite Member
    from bfe
    Posts: 92

    I would do it as such ... (36 cut per year) X ($45) = $1,620 / 12 months = $135.00 per month ... offer fall and spring cleanups, pruning, hedge clipping, fert, aeration, de-thatch, power washing hard surfaces, etc. for additional charges ... offer "all inclusive" if you are looking to offer them a deal ... normally it would cost them $200 per month offer at $180 ... that's a 10% discount ($240) ... or one month free with 12 month contract ... good luck .
     
  5. ken50

    ken50 LawnSite Member
    from tx
    Posts: 142

    Thanks Marc. That is exactly the information I was looking for, and falls right in line with what I was thinking as well...10% discount, anything other than cut and edge is extra.
     

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