for those who bill x amount monthly

Discussion in 'Lawn Mowing' started by lawnwizards, Sep 22, 2006.

  1. lawnwizards

    lawnwizards LawnSite Silver Member
    Posts: 2,434

    how do you do it exactly? do you take the # of weeks you cut times the cut price then divide by the month? ex 32wks X 25 = 800/8 =100 per month? if not, how do you do it? also, what about months with 5 cuts in it, how do you deal with that? thanks.

    randy
     
  2. ChadsLawn

    ChadsLawn LawnSite Bronze Member
    Posts: 1,110

    I price per cut. Then I price hedges per 1/4 divide that by 12. Then add it into the price per cut. Thats the monthly price.
     
  3. DistLawns

    DistLawns LawnSite Member
    from Midwest
    Posts: 120

    We do it just like you said, take the average number of cuts, which in my area is about 25-26 cuts. We base it on 24 cuts, multiply it by the amount per cut, then divide by six months. The reason we only use 24 cuts is because we may have to skip due to rain, or a drought and burnt grass. This way we tell the customers we allow for a couple of skips in the contract, and we still get paid. Don't worry about 5 cuts in a month, it averages out in the end.
     
  4. mountain man

    mountain man LawnSite Member
    Posts: 141

    We take the total work for the year and then divide that number by 12 for the monthly rate. Then we automatically charge the credit card on the 10th and the money is in the bank on the 12th.
     
  5. lawnwizards

    lawnwizards LawnSite Silver Member
    Posts: 2,434

    how did/do people react to your year round billing?
     
  6. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,307

    Most people like low monthly payments and any way they can get them the better, especially if they are paying after the work is essentially done. You have to be very very careful explaining that you are spreading the total lawn cost over 12 months so they don't think they can cancel in Oct and get off the hook for the money. We build in an extra mow charge if they cancel before the 12 months is up. People who do auto paying want to set it up and forget it, and that we like. Some people won't go for it at all...like old people.
     
  7. plantzpropertymanagement

    plantzpropertymanagement LawnSite Member
    Posts: 189

    I bill my customers in advanced for the month not all but most of them. Say the bill is 135.00 for the month i send them a bill for 135.00 thats due on the 10th.
     
  8. mountain man

    mountain man LawnSite Member
    Posts: 141

    All of our maintenance is year round and it never comes up about slowing down in winter since we educate the customer before hand about our our services work. If they did mention a concern about it then we would not take on the business.
     
  9. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    Same as DistLawns here.... 24 cuts, plus spring / fall cleanup, plus all chemical apps, plus sales tax on what gets charged sales tax on, totaled and divided by 6.
     

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