12 month contracts

Discussion in 'Lawn Mowing' started by fga, Sep 2, 2004.

  1. fga

    fga LawnSite Silver Member
    Messages: 2,449

    just a thought....
    i've gained so many accounts from people leaving there previous guy because he switched to a 12 month. the biggest problem people would have i've heard is that they are paying through the few winter months and not seeing service done. now ofcourse on papepr, the money costs them the same, but i was thinking....
    what if you factored in snow work into the contract so they would get serviced for the snow in there walkways and driveways. it would sure help be a seller of the 12 month idea...
    just an idea, what do you think?
  2. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Messages: 10,178

    adam, please tell me how on earth you can factor in snow removal? how will you know when it will snow, how deep, and how often?
  3. fga

    fga LawnSite Silver Member
    Messages: 2,449

    i didn't say i had an outline, just an idea. there are several guys who charge snow by the month, despite the amount fallen. i guess i could ask their advice. i've always charged by storm.
    well, maybe you could take an average, of the storms in the last several years. I have them all documented, just have to go throuh my files. ofcourse, you could get hit, but like i said, still brainstorming..
  4. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Messages: 10,178

    i thought about this once, kinda like offering "insurence" for snow removal. i thought it would go like, 0-4 " , 3 storms, x amount per season. xx amount for each additional inch, and each additional storm, etc. that pricing is too unstable for me. i do yearly contracts, but break it into 9 or 10 payments. this way it's an annual fee, but eliminates the "you're not here in jan and feb, why am i paying" bs
  5. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Messages: 4,373

    I do it with snow.

    I'm solo with 18 commercial "gas station" sized accounts.

    I figure how long it would take to plow a lot, on a 3" snowfall.

    I then figure 18 snowfalls / year, add it into my bid with the fertilizing, lawn care, tax, etc., then divide by 12.

    Some years you're going to win, like last year where there was 2 months in MN without a 1.5" snowfall, other years I'm going to plow 5 times in 1 week for that same amount.

    Also, I usually try for accounts that aren't irrigated, if I can. That way you can sometimes make up money if you get a dry spell.

    Businesses go for it because they know what the set budget is for the year for outside maintenance.

    I also know guys that charge, say $150 / month to be on the list, and then a lesser fee, say $45 / hour for a truck to plow. So your bid would be $150 in the winter time / month, and then an added charge, albeit lesser per hour per snowstorm.

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