Per-customer revenues

Discussion in 'Lawn Mowing' started by Mark McC, Feb 2, 2005.

  1. Mark McC

    Mark McC LawnSite Bronze Member
    Posts: 1,565

    I've used the search widget and have come up with little in the way of conclusive discussions, so here we go.

    A few caveats: One is that rates vary geographically and demographically. Have to leave a fudge factor for that. The second is that the age of the operation may tell a lot about how many services an LCO has sold its regular customers: mature businesses have had more time to sell a higher percentage of customers more services. There are more, no doubt, but this is a good start.

    For an LCO offering mow/edge/trim/blow, fertilization, aeration/seeding, shrub trimming and fall clean-up on lawns running between 1/3 and 2/3 acre, assuming the average lot is about half an acre, how much revenue would you average per customer?
     
  2. DennisF

    DennisF LawnSite Bronze Member
    from Florida
    Posts: 1,381

    I haven't done a lot of research into per customer revenue in my business, but based on the criteria that you laid out, I would guess the average to be between $1200-$1500 per year per customer in this area of Florida. The larger lawns would obviously generate considerably more revenue.
    Here in Florida most customers don't take full service lawn care from the same business. Most lawns are mowed by an LCO who does not have a chemical license. There are local companies here that do nothing but fert, pesticides, herbicides for lawn and shrubs.
    Another area of expertise is shrub trimming. There are companies here that specialize in topiary and custom shrub shaping. Some of my accounts use these services. There is one guy here that use to work for Disney. He maintained the topiary at Disney and Epcot. He retired from Disney and now runs a business that provides custom shrub shaping and topiary. From what I here his fees are in the stratosphere. He is also very busy.
     
  3. Mark McC

    Mark McC LawnSite Bronze Member
    Posts: 1,565

    Dennis, that's a good start. I wondered if the per-customer wouldn't be in the range you described. I'm thinking that I should be able to average roughly $1,350, but in northern VA, that should be easier than where you are because the per-capita income up here is substantially higher (I presume).

    I raise the question because I recently saw a post in which someone (I can't recall who it was) claimed to average a dab more than $2,200 per customer. I found the notion pretty interesting, but maybe a chem license is one of the things needed to start working toward that range.

    has anyone else worked out this kind of number for their operation?
     
  4. chefdrp

    chefdrp LawnSite Bronze Member
    Posts: 1,384

    if im reading the question right, in my area. My lawns will generate around 1,200. Thats without doing fert. Mow,trim,blow and shrubs and bushes. Then there the spring cleanup and leaves.
     
  5. YardPro

    YardPro LawnSite Gold Member
    Posts: 3,563

    for all new full service customers we charge $1500.00/year minimum ( lots here are 75x1500 with 3Ksqft homesplus decks and drives). we have several that are $2K and up.
    we are dropping an area that we have 11 homes that are almost side by side, but they are larger lots 1/3 acre and mow blow and go only. customers here are $500.00/year.
     
  6. Mark McC

    Mark McC LawnSite Bronze Member
    Posts: 1,565

    Darrin and Dennis, I just realized that I didn't ask how many cuts per year your regular customers average. That's an important number.

    I mowed my first customer last year 27 times and it could easily have been two or three more. Of course, i signed them up before March was over and not everyone else got on board that quickly. Those who like fertilizer signed on earlier. I'm projecting this year's gross based on an average of 25 cuts, so the marketing program rolls out in a big way starting e/o February.

    Dennis, I gotta figure you're averaging about 40 cuts, maybe more, per year. Sound about right?

    Darrin, are you averaging 25? More than 25?
     
  7. Mark McC

    Mark McC LawnSite Bronze Member
    Posts: 1,565

    Yardpro (what in heck is your first name?), when you say "full service," what precisely does that entail?
     
  8. chefdrp

    chefdrp LawnSite Bronze Member
    Posts: 1,384

    right around 27. Give or take. some lawns have a fert company so in heavy growth i might have to cut 2 times a week.
     
  9. DennisF

    DennisF LawnSite Bronze Member
    from Florida
    Posts: 1,381

    My average lawn received 42 cuts during 2004. Some of them received other services (mulch, shrubs, clean-ups, gutter cleaning, etc) but about 50% were mowing, trimming, edging only. I'm going to try to do some analysis on my service records and get some accurate per customer revenue numbers. It'll take to time to study the data, but it is interesting to know the per customer revenue numbers.
     
  10.  

Share This Page