Residential Contract Questions

Discussion in 'Business Operations' started by Snapper99, Jul 14, 2012.

  1. Snapper99

    Snapper99 LawnSite Member
    Posts: 7

    I am going to implement contracts to my new customers for the rest of the year and my existing customers next mowing season. I offer mowing, weedeating/edging, and clean up for all my mowing job. I also offer bush trimming, flower bed maintenance, and yard clean up as well. My question is this: How do I set a standard monthly price? Do I average how many times I will mow their lawn in a month to set my price? Do I factor in the months of March, April, and May in which I may mow every week? But in July and August I may only mow once or twice because of dry weather. Any help in how to price would be great. Thanks
     
  2. C Jovingo Landscaping

    C Jovingo Landscaping LawnSite Senior Member
    Posts: 436

    Subscribed...goin fulltime next year & interested as well abt doin contracts.
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  3. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    If I were to do it, I would have two basic programs.

    Look at the number of mowings for EOW and EW in a season.
    I would likely toss in a couple of extras on the EOW because you know the grass will surge in the spring rains.

    You average that and set up a monthly rate.

    You can do the same by averaging the cost of the other services if you like. I will in all cases exclude things you are not licensed to do and in particular insect control even if you have a T&O/
     
  4. Snapper99

    Snapper99 LawnSite Member
    Posts: 7

    Thats a good idea. So lets say I will mow on average 30 times from March to end of October. Take 30 and multiply it by the hourly rate I want to make and then divide it by 8 months. This gives me my average price per month. Is that what you are suggesting? Then do the same with the other services I offer and combine both to make it all one number. Thanks
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  5. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    You can calculate an hourly rate or a per job rate and average it over as many months as you like.
     
  6. Snapper99

    Snapper99 LawnSite Member
    Posts: 7

    Got ya!
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  7. C Jovingo Landscaping

    C Jovingo Landscaping LawnSite Senior Member
    Posts: 436

    I think 12 month would be better then 8 months. Would have money coming in all 12 months & would kinda keep you in contact via billing in the off season so they don't forget abt you, IMO.
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  8. Snapper99

    Snapper99 LawnSite Member
    Posts: 7

    Thats a good idea too. How would I present this to the customers? Because in those four winter months I am not doing any mowing or trimming on their lawn. But that does break up and lower their monthly payment. I am also thinking about setting up a direct deposit account so they dont have to worry about writing a check to me every month and so I dont have to track them down.
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  9. C Jovingo Landscaping

    C Jovingo Landscaping LawnSite Senior Member
    Posts: 436

    Maybe offer 8 or 12 months Options. The 4 extra months just make that payment smaller than if they paid in 8 months. You would just have to explain that the 12 months of payments is for the 8 months of work to make it more affordable. Everything must be spelled out in contract though. At the end of season a customer asks for gutters cleaned, that is extra if it is not in the contract
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  10. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    The other side of the coin is on the 12 month program you can just start right up next season and keep rolling.

    I also like to do a minimum of a monthly service for most of my accounts.
    Keeps the leaves and junk down.

    We have two times of year for leaf drops, live oaks drop in March.

    Our growing season is longer too.
     

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