Package price vs per cut price

Discussion in 'Business Operations' started by vanguard, Nov 6, 2005.

  1. vanguard

    vanguard LawnSite Member
    Posts: 202

    I am thinking about guiding/persuading my residential accounts toward a seasonal package price that would include aeration, sprinkler start-up, weekly service & fertilizing every 5-6 weeks, and sprinkler blow-out as a package deal that would be included in one weekly rate.
    I've found that these are the most common services that my customers are asking for, and would help level out the stream of income throughout the season. How many of you folks do this vs just trying to up-sell these services as you can? I also thought about adding spring and fall clean-ups but about half of them like to do them themselves.

    Any suggestions/thoughts?:blob3:

    Thanks
     
  2. Sounds like a good idea. What you could do is figure out how much all these services would be individually and give them a 5 or 10% discount if prepaid for the season.
     
  3. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I do both actually

    I offer them a choice between a flat rate price or a per service
     
  4. vanguard

    vanguard LawnSite Member
    Posts: 202

    So Tiedeman, what kind of a percentage go with package pricing?
     
  5. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    just 2% discount off from a flat rate. It's not much, but heck it's still a discount. Because I look at it this way, I am also taking a chance on that flat rate plan as well. What happens if we have an unusual wet summer, so I have to cut more than what was planned for.

    Now if they prepay for one year 5%, and prepay for 2 years 7%, and prepay for 3 years 12%.
     
  6. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I had one customer pay before for 3 years, he saved approx $1,800. But I took that money he paid me and paid off two pieces of equipment. So I actually might have saved more in the long run. Who knows...I never really figured it out
     

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