What do you guys do?

Discussion in 'Lawn Mowing' started by cessnasovereign, May 23, 2006.

  1. cessnasovereign

    cessnasovereign LawnSite Senior Member
    Posts: 292

    When a commercial account is, say $1500 a month and there's one month with 5 visits, do you include it or charge extra?
    I'm getting a commercial account and I'm working on the contract right now, thinking about putting the price per visit, instead of price per month.
     
  2. Scottscape

    Scottscape LawnSite Member
    from Ohio
    Posts: 76

    I would price it per occurence and invoice them per occurence so both of you are happy. but then again make it clear to them that you will being mowing it weekly
     
  3. Raven386

    Raven386 LawnSite Silver Member
    from CT
    Posts: 2,160

    thats what i am doing this year with my comm. account... last year they paid for 26 cuts and i ended up doing 27 and they didnt understand were the extra 270$$ was coming from... huge headache. so yea id suggest invoicing for what you did in that given month.. IMO
     
  4. Runner

    Runner LawnSite Fanatic
    Posts: 13,494

    In the very least, you always state that it is based on x number of visits. you plan ahead for this and charge accordingly. Weekly is always better, because in 2-3 months, you have a whole 'nother cut. Each 4 weeks is 28 days...two months of 30-31 days gives you 5-6 days right off the bat.
     
  5. cajuncutter

    cajuncutter LawnSite Senior Member
    Posts: 626

    You should have taken that into account when you bid the job. I have 12 month accounts and they pay a flat amount per month. My formula is based on 42 visits per year. So here’s the math; $65 yard @ 42 visits = $2730 divided by 12 = $227.50 a month. So if they want anything else done or want me during any of the 10 weeks not accounted for in the equation then I charge extra. I also warn my customers that if there is a significant price hike in fuel then I will charge a fuel surcharge accordingly. You also have to figure in leaf clean up for the fall months and make it clear that if in the event there is a major storm and there is an excessive amount to clean up then they will be charged accordingly. Over the years it has amazed me how many people think that for 40 bucks I am going to spend 3 hours on their yard cleaning it after a storm and not charge them extra. I guess they think that I am little Johnny making candy money or something. Just pisses me off!!
     
  6. Greybeard

    Greybeard LawnSite Member
    Posts: 132

    Some customers, especially some commercial managers, want the same bill every month for budget purposes. You can look at the calendar a year ahead, figure out how many mowings, and just divide the fifth weeks into the whole bill. So if the weekly bill should be $60, you charge a monthly rate of $260 and cover the fifth week that happens every few months.
    Storm cleanups and other special work should be spelled out as extras right on the contract. No surprises that way.
     
  7. General Landscaping

    General Landscaping LawnSite Senior Member
    Posts: 801

    There are 4.3333 weeks per month.

    So take your weekly and X4.3333

    Or better yet use the system advised by CajunCutter and adjust for your area's cuts/year.
    You can also figure in things like fert and hedges into the yearly price before you cut it back into 12 payments.

    Present your total as a yearly price and tell them you will divide it into 12 monthly payments.

    Make sure your obligations are clearly stated and clearly list every thing that will be billed separately (mulch, irrigation issues, storm c/u)
     
  8. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    Correct, I am finding out about this 5 weeks / month deal myself on a contract, that's just tough cookies, I eat it this time and chalk it up to experience.

    Oh well those are amazing but I find the difficult ones are those who assume my labor rates are still $30 / hour, it's no more amusing when a customer 'pre-quotes' a job in their mind, they're still half-ways off. And yeah, the few who assume the trailer-load of crap from the storm is included in the grass-cutting fee but I find those ok for the most part, the ones get me are the ones assume their leaves from the fall are included.
     
  9. cessnasovereign

    cessnasovereign LawnSite Senior Member
    Posts: 292

    Well, it's a commercial property and quoted $500 a cut, $2,000 a month, they say they knew someone who could do it for $1500 a month (probably BS but I really wanted it because two other large properties will soon follow with it.) So I accepted and like an idiot, just didn't think to mention about some months being 5 weeks long... So I'm thinking about using my standard contract where the cost per visit is filled in, instead of the cost per month..
     
  10. cessnasovereign

    cessnasovereign LawnSite Senior Member
    Posts: 292

    Oh and this is very similiar to the contract I use, what do ya'll think??


    Timber Creek Lawn & Landscape
    (316) 640-XXXX

    Customer Name: _
    Street Address:

    Agreement for Lawn Care Maintenance

    Service Agreement

    Lawn service is to be provided on a weekly basis on a scheduled day each week during the growing season. In the event of inclement weather the services provided will be scheduled for the next available day. Lawn service will include mowing all turf areas, trimming all turf areas inaccessible to mower with line trimmer, edging all walkways and driveways, blowing all resulting clippings with a power blower and disposing of clippings and debris. The cost for this service will be $ ----- per week. This agreement shall commence on ------ and continue thereafter as long as both parties are satisfied.

    Additional service may be provided as needed at customer request.

    Notes To Service Agreement

    If you are not satisfied with the level of service you are being provided please notify Timber Creek Lawn & Landscape immediately so that we can correct this in a timely manner. Timber Creek Lawn & Landscape strives to complete work in a respectable manner each and every visit.

    If a dog is kept on the property, customer must have lawn free of pet droppings, when contractor is scheduled to service lawn, or customer will be charged a $5 equipment clean-up fee per visit.

    Timber Creek Lawn & Landscape is not responsible for any damage of items left on turf areas and/or malfunctioning sprinkler heads.

    There is no obligation for either party to continue service. Either party may terminate this agreement by serving a 14-day written notice.

    Timber Creek Lawn & Landscape shall submit invoices by the 5th of each month for services rendered during the previous month. No payment shall be taken during time of service. Payments are due no later than the 20th of each month. Any accounts thirty days past due will be charged a finance charge of $10 per month. Any bill not receiving full payment within thirty days shall be considered delinquent. All services will be temporarily stopped on any delinquent account until full payment for services rendered has been received. In the event of default the client agrees to reimburse Timber Creek Lawn and Landscape all administrative costs, collection costs, attorney fees, recording fees and/or court costs.

    Customer Signature: _

    Signature: _
    Timber Creek Lawn & Landscape

    Thank you for giving us the opportunity to serve you!
     

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