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Monthly Package Pricing for Landscape Maintenance Clients

Discussion in 'General Industry Discussions' started by Sean Adams, Jan 14, 2013.

  1. FerrisDiesel

    FerrisDiesel LawnSite Senior Member
    Posts: 441

    I liked everything you said here............until you said Bank of America! I had nothing but problems with them, we closed all our accoutns with them and went with a local bank. I guess different strokes for different folks :laugh:
     
  2. yardguy28

    yardguy28 LawnSite Platinum Member
    Posts: 4,464

    I'm glad that works for you. for me it works this way.

    each and every client signs up once through word of mouth after the initial estimate and I work for them until they actually tell me to stop. at the end of each month I send a detailed invoice of the work actually completed and within 14 days I receive a check in the mail.

    clients like it this way as they are free to come and go as they please. not that I want clients going but I don't want anyone to feel obligated to use my services. if you wish to cancel, call at any time and I will get you a final invoice.

    as for banking. I use chase for both personal and business. never have had a single issue. I've never paid a single fee for a min even when my accountants did have a min. currently though my business and personal accounts are linked so there is no min for either.

    staying away from contracts or service agreements saves me a lot of headaches I feel and keeps people from looking for discounts. I do not give any discounts for any thing, reason or person.

    different strokes for different fokes and I'm sure one of those different fokes.
     
  3. cpllawncare

    cpllawncare LawnSite Silver Member
    Posts: 2,659

    NOT having service agreements was causing me more headaches than not, We're a full service company not a mow and go company, so we were always being ask to do more than what was originally agreed to, and when you sent them the bill they always balked.I got tired of haggling about what was what so I had service agreements made up and everything put in writing.
     
  4. yardguy28

    yardguy28 LawnSite Platinum Member
    Posts: 4,464

    more of a headache to me because should they wanna stop your services mid season guys who made the contract wanna fight about trying to make the clients honor the contract and sometimes lawyers get involved.

    mine is a simple no fuss operation. you wanna stop service call, email or send me a letter. the I will stop service and get you a final invoice and your free to go.

    I wouldn't call myself a mow n go, but I'm sure I'm completely full service either. while a good chunk of my business is mow n go, I do have full service clients.

    I've done both residential and commercial and have never done a single service agreement or contract. just a phone call or in person "when can you start".
     
  5. cpllawncare

    cpllawncare LawnSite Silver Member
    Posts: 2,659

    I am using Quick books for my accounting and at the end of every service day, I enter all my clients information into their perspective invoices and beside the particular service description I insert (01/14/13). everyone, every time!

    I do the same, I call it EOD'N LOL
     
  6. lawnpropm

    lawnpropm LawnSite Senior Member
    Posts: 579

    Subbed
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  7. lawnpropm

    lawnpropm LawnSite Senior Member
    Posts: 579

    For the guys who get customers calling wanting to terminate the contract early, do you gave a clause that implements an early termination fee? Everyone else does, cable companies, cell phone service providers, apartment complexes etc. Like everyone else said billing 12 months breaking up the cost in a way you are financing the customer... so what happens when you're 4 months into the contract and they cancel? Someone said they let the customer go and just send them the final invoice. It seems like money lost and income projections get screwed up. Thoughts???
    Posted via Mobile Device
     
  8. Belgium

    Belgium LawnSite Member
    Posts: 162

    We always do it this way. It has nothing to do with stretching, but for our clients it's easier to pay a vast amount of money every month. Also, no more discussions in th busy months about how expensive our services are, and in the slower months we can always argue that we lose a bit of money in the busier months. If a client wants something extra, we just charge him extra. Only thing we don't do is snow plowing on a contract basis, the weather is just too unpredictable over here. For us this works out fine.
    Posted via Mobile Device
     
  9. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    This is because people are use to buying snow removal for the season.

    However people see mowing as a weekly service. In their mind they are being charged by the month for every weekly mow. This causes them to think if a service is skipped one week they should not be charged for it.

    The problem with LCO's having cash flow problems is that when they mow for 30 weeks and take in $1,000 a week they spend as if they are going to make $52,000 a year instead in reality they will only be earning $30,000.

    The problem is not not having enough cash flow throughout the whole year.

    The problem with cash flow is that the LCO spends $22,000 more then the $32,000 he is really making.
     
  10. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    The problem is not being full service or mow and go.

    The problem is not doing more work then you originally agreed to do. The problem was you did not get the customer to agree to the price first for additional work before doing the extra work.
     

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