Per Cut, Monthly, Yearly...What's your take on it?

Discussion in 'Lawn Mowing' started by MDLawn, Dec 3, 2012.

  1. pseudosun

    pseudosun LawnSite Bronze Member
    Posts: 1,740

    I still don't have a flat screen tv. When this one goes down, i have another tank in my closet that i can hook up.
  2. MOturkey

    MOturkey LawnSite Silver Member
    Posts: 2,757

    Some valid points, but I do think the analogy is valid, because even though the frequency of service provided by most vendors is considerably less often than the average weekly service involved in lawn care, the principle is still same. I had accounts I didn't service for as long as 6 weeks this year due to the drought. I don't see a problem with offering customers the option of monthly payment options if one wishes, but I think, in most markets, attempting to make this a mandatory way of doing business, would be a tough sell.
  3. MDLawn

    MDLawn LawnSite Bronze Member
    Posts: 1,284

    I guess the thing for me is getting people to part with their money sooner vs weeks after service. Even if it was the 15th of the service month. And if you needed to credit them at the end for any skipped weeks. If you're a solo op (I am but would like not to be) operating money may not be as important as the guy who needs to pay employees and other bills a solo op doesn't not have. Solo guy can budget to have "drought money". A large business can't go without payments as you then cannot pay or retain employees. This is the problem with some of these discussions. A solo and and employee business are two completely different business entities and I feel the solo guys provide 95% of the opinions on this board vs the true businesses.
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  4. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    The amount of cuts varies season to season. Some times cut can be skipped during a season.

    So either you have to be willing to over charge or under charge. Hoping things average out in your favor instead of the customers favor.

    I can see it now a customer after years of service fires you and you say to the customer hell no you can't fire me the money has not averaged out to my favor yet.

  5. MDLawn

    MDLawn LawnSite Bronze Member
    Posts: 1,284

    Just to be clear I would only have payments DURING the service season. So 7 months. So even if someone quits you're still paid up. Offer $42 per cut ($1260 total) or $40/cut x 30 cuts / 7 months $171.43 or $1200 total.

    Gamble? Yes.
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  6. I think there is some misunderstandings in this thread. We charge monthly here in Florida bc we work all year. So instead of really high bills in the summer, and low bills in the winter, we average it out for the year. A per cut person in Florida will typically not want service in the winter, this making them a terrible customer. You guys only cut for so many months, so it's not out of the norm to bill per cut, but problems can arise with a drought. We don't have droughts here as it typically rains from may-October. I personally would have a problem with paying someone for work they aren't going to do. But, if you sell the customer on doing weeds and or pruning on a week where it doesn't need cutting, that should go over way better.
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  7. cpllawncare

    cpllawncare LawnSite Silver Member
    Posts: 2,659

    I see two very valid points here,

    1st - A company with employees like myself has to be able to make payroll so it makes sense to require 12 montly payments.
    2nd - Depending on your area of the country it may or may not work, we pretty much work year round here so we're kinda like the FLA guys, it makes sense for us. When the grass stops growing like it has here, we focus on other area's of the yard, bed and shrub maint, other projects the HO wants done, which actually gets billed at the hourly rate.
  8. MDLawn

    MDLawn LawnSite Bronze Member
    Posts: 1,284

    Besides my last post this was included in my first post. I honestly thought about this because another member JimLewis, who has a large company in Oregon, does exactly that type of thing. But, his includes fert and weed control with trimming and other maintenance items. Basically up selling of some sort. So I probably should've posted in the landscape maintenance section rather than mowing.
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  9. Yes, he lives in an area that requires year round maintenance. I'm assuming you live in Maryland, but I don't know what your winters are like.
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  10. MDLawn

    MDLawn LawnSite Bronze Member
    Posts: 1,284

    Nope I western new york. Lotta snow

    But yea I understand it's easier with the year round "green" maintenance.
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