Payment plans

Discussion in 'Lawn Mowing' started by theguynextdoor, Mar 21, 2008.

  1. theguynextdoor

    theguynextdoor LawnSite Senior Member
    Posts: 265

    I am making up my contracts for residentials for tomorrow. I would like to offer 2 different payment options,

    1.) Pay for the season upfront and receive 10% off. This is great for people who travel, will get me some cash flow for start up, and less money to hunt down during the season.

    2.) I would also like to have a steady cash flow throughout the season, but am not sure whether to bill monthly for lawn mowing or to have 3 or 4 equal payments. Monthly is a lot of paperwork. They are residentials so I think that people would rather not pay every month.

    I'm really struggling on pricing these lawns. The neighborhoods are your average neighborhood, most houses cost 225,000 to 325,000 and up. I am think 25 per cut. Does this seem low. I figure if you go for 50/hour adn the lawn takes 30 min, then 25 per cut.

    My neighbor got a contract for his lawn, 540 for the 30 week season. This would only be 18/cut. And it doesnt say anything about tax so that means hes not legit or tax is included, which is even less per cut.


    Sorry for the long post. Any suggestions?
     
  2. BeautifulBlooms

    BeautifulBlooms LawnSite Senior Member
    Posts: 613

    10% off??? Thats probably your entire profit margin. I understand needing some cash up front for cash flow but dont give 10% Give them like a $50 discount or something.
     
  3. kleankutslawn

    kleankutslawn LawnSite Bronze Member
    Posts: 1,185

    i don't like billing quarterly because if they burn you it is for 3 months not 1.Going 3 months on all your accounts and collecting no money doesn't sound good to me.At least it wouldn't for my business.Not to talk about the late payers,now you are 4 -5 months in the hole.My.2
     

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