one year contracts

Discussion in 'Business Operations' started by scagman, Dec 6, 2001.

  1. scagman

    scagman LawnSite Senior Member
    Posts: 270

    My first year i didnt have anyone on a contract now my second year is coming up and i want to put all of my mowing accounts on a one year contract my problem is that im not sure to charge the same monthly payment throuout the contract for instance - jan 1 mow/ feb 2 mows/ mar 3 mows/apr wkly/may wkly/june wkly/jul wkly/aug wkly/sep wkly/oct wkly/nov 3 mows/ dec 1 mow so do i charge the same price even though dec is only one visit also when your putting together a contract and want to include spring and fall cleanup in your full service pkg how can you esimate that into the price
     
  2. 1stclasslawns

    1stclasslawns LawnSite Senior Member
    Posts: 565

    It depends on what you want to do. You can take the price per cut multiply it times the number of cuts and get a monthly figure. Or you can just bill per mow by the month.

    I like the first way best.

    Jim
     
  3. TJLC

    TJLC LawnSite Bronze Member
    Posts: 1,308

    I base my monthly contracts on an average 3 cuts per month, year round, up to a maximun of 36 cuts per average year. Anything over 36 cuts in a year is on a per cut basis. I charge a set monthly fee, year round. It's kinda like even billing on your electric bill. This is how I do it, I'm sure others will vary.
     
  4. cajuncutter

    cajuncutter LawnSite Senior Member
    Posts: 626

    We get around an average of 43 cuts a year here in Louisiana. I just take 43 X (whatever the charge) and divide by 12. When fall clean up comes we charge by the bag. I use 55 gal bags and we pack them full. Our charge is $7.50. I generally takes an hour to do 4, this would include the extra time to round up the debris. It comes out to less than what I would normally make on an hourly basis but atleast it makes up for the extra time that you have to pay your guys for.
     
  5. Mark

    Mark LawnSite Senior Member
    Posts: 723

    On all my contracts i have the clients pay at a 12month rate,youll be happy to still be getting checks come late winter, also ive found that alot of customers don't want contracts but i still service them and they pay on time,i won't turn down good paying yds just for a contract. I service 52accounts and 34are on contract. All commercial is under contract,but some of the resident people are set in there ways,and don't want the contracts so i don't pressure them,i just keep them happy, alot are high paying jobs. You might not have a problem running into this, but i sure wouldn't trun=down good work. Marks Mowing Service
     
  6. little green guy

    little green guy LawnSite Senior Member
    Posts: 955

    I charge for 32 cuts ( thats how many i usually do a year), 2 leaf cleanups, 1 spring cleanup and on some i have mulchingg and aerating, I add up the total amout of all this, divide by 12 and bill out that amout over 12 months starting 1/1 and going to 12/31. It's' the same amout every month all year
     
  7. Turfdude

    Turfdude LawnSite Bronze Member
    Posts: 1,900

    One should never do work w/out a contract. A contract is a written agreement betwen 2 parties. It protects you and the client and spells out wat is expected of/from both parties. Don't be afraid to spell ut payment terms, late fees, etc. I have one client who left me a note as follows: "Enclosed please find check for last 2 months invoices. I have deducted the late payment charge and do not want to be bothered by one in the future." The client is very good pay, but I still gave them a call and said that if th payment is received on time, then no late fee. I get charged a late fee from my suppliers if my bill is just one day late. So if I mulched their place and put suplies on credit and received payment late, but didn't collect a late payment fee, who is the loser?? ME?? I don't think so.

    Sorry to ramble. Just one ofmany reasons for a contract!!

    Bob
     
  8. mybabyciv

    mybabyciv LawnSite Member
    Posts: 28

    Sign them for a multiyear with a 5-7% increase each year.
     

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