louisiana LCO's

Discussion in 'Network: South' started by ffemt1271, Feb 24, 2007.

  1. cstafford

    cstafford LawnSite Member
    Posts: 71

    Hey guys. Just curious. I often hear that the winter months are very tough for quite a few. Wondering how many have monthly commitments with their clientele. This way your income stays pretty steady throughout the year with the exception of installs, seasonal color changes, etc.
     
  2. stevenf

    stevenf LawnSite Bronze Member
    Posts: 1,612

    There is NO market for residentials so far and I have been doing this for a couple of years. This year I obtained a few higher income homes so I plan to really sell some cleanup/maintenance work to them and see how it goes.
    Commercial properties are contracted to be visited every two weeks during the off season and are charged as a cut. Most of the time they dont need to be cut but its still a steady monthly check for atleast one year.
     
  3. KrayzKajun

    KrayzKajun LawnSite Fanatic
    Posts: 10,742

    i put my residentials on a biweekly come november. i still go out and edge, blow pik up leaves etc... luckily the homebuilder im contarcted too keeps me busy all year w/ new constructions and clean-ups
     
  4. cstafford

    cstafford LawnSite Member
    Posts: 71

    Krazy, even at two weeks come November, your monthly fee should still be the same as if you were cutting in June/July/Aug, etc. Average out the cost over a year and charge one fee per month Ex. $60/cut x 43 annual visits = $2580/year. $2580/12 months = 215.00/month for 12 months. Whether they pay by the cut or by the month they still pay $2580 annually. Your maintenance money in the down season stays the same.
     
  5. cstafford

    cstafford LawnSite Member
    Posts: 71

    Krazy, even at two weeks come November, your monthly fee should still be the same as if you were cutting in June/July/Aug, etc. Average out the cost over a year and charge one fee per month Ex. $60/cut x 43 annual visits = $2580/year. $2580/12 months = 215.00/month for 12 months. Whether they pay by the cut or by the month they still pay $2580 annually. Your maintenance money in the down season stays the same.
     
  6. hotwater

    hotwater LawnSite Member
    Posts: 77

    Is this the way you run things? If so, what's your experience with it?
    I ask because I was just thinking about this last week.
     
  7. cstafford

    cstafford LawnSite Member
    Posts: 71

    Hotwater, thanks for chiming in. Yes this is the only way we handle our business (maintenance accounts). But keep in mind, you have to do what is best for your business. This process is not new to our industry. Commercial clients have accepted this method for years. It's our residential customers that need to be educated. :hammerhead: It is much more efficient when managed this way and will free up your time to.....Generate more business.

    Learn this lesson from me. The first time I tried to explain this to a potential customer, he/she looked at me as if I was speaking Greek. Why??? Because I was not fluent in my approach and delivery. If uncomfortable at first, practice this on paper with a few scenarios (42 cuts annually, 39 cuts annually, $50/cut, $40 cut, etc). Most customers will understand. Just remember that you will have to be able to live on a monthly income as opposed to weekly. No more under the doormat, left in the mailbox or plant container for you.

    Invoice (remember, Quickbooks or some other automated invoice generating system is your friend) at the beginning of the month in which service is to be provided. (Sept 1 for service in Sept). No money by your given due date, no further service until then. For us, it is 10 business days. If past one week, 15-20% more for the added time that it will take you to "catch the grass up". Of course this is adaptable as needed.

    Again, do what is right for your business. But for us, no two week accounts. We need to eat every week, not every two weeks. Not being a smart ass, just stating facts.

    Hope this helps you.
     
  8. hotwater

    hotwater LawnSite Member
    Posts: 77

    Thanks for the reply cstafford.

    I'm going to try that out this spring for new accounts, I'll leave the few I already have the way they are.

    We are in the prime planting season for fall how's the landscaping going for everyone?
     
  9. cstafford

    cstafford LawnSite Member
    Posts: 71

    Landscaping has been pretty rough. Seasonal Color changes for regular customers and maintenance has kept us afloat.
     
  10. KrayzKajun

    KrayzKajun LawnSite Fanatic
    Posts: 10,742

    wht the hell is up with this weather?? pretty much thought we were done 1st week of Oct with the cool weather. now its back to 80deg and grass is growin again.

    gunna go out next week and try and sell some pressure washing and fall clean-ups door to door.
     

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