Per cut VS. Annual contract

Discussion in 'Lawn Mowing' started by Lawnze, Feb 11, 2002.

  1. Lawnze

    Lawnze LawnSite Member
    from AL
    Posts: 4

    Today I got the chance to bid on a small commercial account. The guy says he will probrably want me to bid his residence and definitely a relative's residence. On the commercial account, he wants a per cut rate quote and an annual per month quote. My price on per cut is $60 . (Our growing season will equal $960)
    The other 5 months would only involve 1 small leaf cleanup. How would you bid for the annual monthly rate? I really want this job because of the other 2 potential accounts.
     
  2. HOMER

    HOMER LawnSite Gold Member
    Posts: 3,183

    Check your private messages.
     
  3. fshrdan

    fshrdan LawnSite Member
    Posts: 142

    Only 16 cuts per year in AL? Seems a little low to me. Even bermuda lawns on a 10 day cycle get about 25 cuts/yr. Also, what about scalping and hauling away clippings in the spring (for warm season grasses), pruning crape myrtles, fert apps, hard pruning trees. All this stuff gets done in the winter months and should be included in your bid.

    Add all of your costs together, divide by 12, and this is you're monthly maintenance fee. Make up a clear and concise contract outlining your activities and you're set. Good luck.
     
  4. Lawnze

    Lawnze LawnSite Member
    from AL
    Posts: 4

    Thanks HOMER. East central, AL. He only wants biweekly (The last 10 people I talked to only want biweekly). I think it's a combination of the area and the economy.
     
  5. lamblawnscaping

    lamblawnscaping LawnSite Member
    Posts: 165

    I am getting ready to send out service agreements for the first time this year and all will be annual with 8 equal monthly installments. I estimated 24 cuts per season for my remaining 10 day accounts (not taking on any more of these). I figure I will do them weekly in the spring when they are growing fast and stretch it out in the heat of summer possibly to 14 days. Anyway, in the first 3 months of the season they will be well ahead of me as far as services they have recieved compared to services they have paid for. I was just wondering how you guys word your contracts to protect you from getting the shaft mid-season. I am considering an early termination fee, or possibly stating that if the contract is cancelled before completion, the final bill will be pro-rated to reflect actual services performed at a rate of x per cut. Do any of you do it this way. Any suggestions would be appreciated.
     
  6. Five Star Lawn Care LLC

    Five Star Lawn Care LLC LawnSite Bronze Member
    Posts: 1,005

    When you get into the bigger money accounts like condos, appartment complexes, and large commercial mainly all of the propety managment companys wont even give u the time of the day unless you are bidding on the full year round contract in equall monthly payments. Its basically you taking a stab in the dark on how many times its going to snow and how many cuts u will get in a season....on all of my contracts i figure 28 cuts per season, 9 plowable snow falls, and 25 applications of salt (price based on average per ton rate). then i ad it all up and divide by 12 and if i really want it i might chip off a couple of bucks off the monthly total
     

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