Yearly contracts...

Discussion in 'Business Operations' started by allstar, Oct 22, 2003.

  1. allstar

    allstar LawnSite Senior Member
    Posts: 282

    How do you guys figure up the monthly fee for customers who want year-round service,say basic maintenance?I was thinking about taking the amount I would charge for one visit,then multiply by the number of cuts per year and dividing by 12.For example,if I charge $50 for one visit and I will cut 35 times in a year,the monthly rate would be $145.83.
    Is this a good method?Also,how many times,on average,will a property need to be serviced in a year in the southeast(S.C.)?Thanks. Jim
     
  2. cklands

    cklands LawnSite Senior Member
    from MA
    Posts: 360

    That's how I do it. I just add p what they are going to spend in the season and divide it by 9 payments.
     
  3. kutnkru

    kutnkru LawnSite Silver Member
    Posts: 2,662

    Heres how I would do it using your 35 cuts and an hourly rate of $35 as an example:

    Lets say that its going to take you:
    20 mins to mow -- 8 mins to trim/edge -- 5 mins to blow off paved surfaces -- 5 mins to travel between accts

    35 visits x 20 = 700
    35 visits x 8 = 280
    35 visits x 5 = 175
    35 visits x 5 = 175
    Total minutes = 1330 mins

    1330 mins/ 60 mins = 22.17 = 23 hrs x $35 = 805/ 12 mos = 67.08 or $67 month
     
  4. lost mountain

    lost mountain LawnSite Member
    Posts: 92

    I think I'd rather have the $145.83 per month :D
     
  5. ccwmlw

    ccwmlw LawnSite Member
    Posts: 69

    I agree with lost mountain. His way is a lot easier.
     

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