Customer pricing options:

Discussion in 'Lawn Mowing' started by ACutAbovesiny, Jan 25, 2007.

  1. ACutAbovesiny

    ACutAbovesiny LawnSite Senior Member
    Posts: 590

    I've been tossing around the idea of giving my customers the choice of their pricing schedule. I am thinking of offering 3 options:

    1.)Price per month. No contract.
    2.)Price per season. Contract.
    3.)Price per year. Contract.


    This should help you guys understand:
    We perform a Spring Clean-up, Fall restoration, 4 fertalizations, and regular maintenance for all our properties.

    Option 1.)Price per month:
    For this option the customer would get a bill for the Spring Clean-up in March. Then they will be billed every month from April through November (some months will be billed for 4 clippings and some for 3 clippengs, also some will have fert applications). This will create billing of different prices for some months then others.

    Option 2.)Price per season:
    For this option the customer would get billed from April through November but I would include all the services and average them per month for 8 months. This will create a level billing. Every month will be the same price. The customer would have to sign a contract for this option.

    Option 3.)Price per year:
    This would be just like option 2 but instead of averaging per month for 8 months they would get billed every month for 12 months. This option would be convenient and would lower the price per month. The customer would have to sign a contract for this option too.



    What do you guys think of this????
     
  2. ACutAbovesiny

    ACutAbovesiny LawnSite Senior Member
    Posts: 590

    Our other services like leaf clean up, pruning, and weed controls would get billed seperately.
     
  3. ACutAbovesiny

    ACutAbovesiny LawnSite Senior Member
    Posts: 590

    I guess none of you guys do this or have thought of doing this.
     
  4. jrc lawncare

    jrc lawncare LawnSite Senior Member
    Posts: 420

    Any of your fertilization & weed control applications would be on a seperate contract, I assume you already know that? Other than that, 6-8 payments a year is the way to go, most of my work is set up that way.:)
     
  5. MarcSmith

    MarcSmith LawnSite Fanatic
    Posts: 7,157

    bill monthly, but still have a contract....I always did yearly contracts with monthly billing, all bills were the same with the costs prorated over the entire year.

    if someone wante da one time deal, it was extra and above and beyond the orgincal scope of work.

    I had severl "levels" to choose from

    mow, blow, edge and go was basic, Shrub maint was an add-on, lawn chems were an add-on, and shrub chems were an add-on.
     
  6. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,320

    All if you options seem too complicated....most people like to pay a fixed amount per month year round so they can use auto pay of some type. If you get them on that path and if you do good work you will never need to contact them again, sort like cable TV.
     
  7. ECS

    ECS LawnSite Bronze Member
    Posts: 1,733

    All of my customers are monthly, no contract. Some months in they may pnly pay $150 and the next month they may pay $2700. Never had a problem. They get billed each and every month for the work performed and have never used a contract and have never had a problem. I do the work, I send the bill, they send the check, all is fine.
     
  8. ACutAbovesiny

    ACutAbovesiny LawnSite Senior Member
    Posts: 590


    I am billing the same way right now. The only reason I was looking to make some changes is so that I would take in a more steady revenue. My bills (for the most part) stay the same every month but I am not always taking in the same amount of money. I just figuered that if I made some sort of level billing lan I would be able to balance things better.
     
  9. ECS

    ECS LawnSite Bronze Member
    Posts: 1,733

    Very understandable. I wish I could do that, just too many veriables here to do that. If you can do that, I think that is fantastic and think you should go for it. :)
     

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