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12 month service 12 monthly payments

Discussion in 'Lawn Mowing' started by T-Bone, Mar 12, 2001.

  1. T-Bone

    T-Bone LawnSite Member
    Messages: 59

    Need help to understand how you provide a 12 month service when there are months you don't mow.

    What extras do you include for months not mowing?
    Are fertilizer applications,shrub trimming, aerating etc. used to help the offset or extra?
    How many cuts per season in your area?

    Lets just use a residential example and say I have been charging $50 per cut (weekly service) for 32 wks. leaving 20 weeks. Do you lower the monthly rate to help offset? and have a signed agreement for your protection ?

    This may not be possible in my area with such a short season or maybe I'm over looking something. I don't know.

    OK The floors all yours
    Any help appreciated THANKS
  2. eggy

    eggy LawnSite Bronze Member
    Messages: 1,085

    Well not really it would be like a budget plan such as a gas bill....
  3. Bob Shoaff

    Bob Shoaff LawnSite Member
    Messages: 64

    What I do is give a price for the annual care of the yard. Then I give them an option of paying in advance, paying quarterly or breaking it into 12 equal installments. This has worked well so far. I do want to get an agreement type letter drawn up to cover my behind. I could see someone saying they want a contract, then you go in and do all this work and spend money on supplies then after a month they want to cancel and you loose big. Once I find a simple agreement I like I will get it going.

    OBRYANMAINT LawnSite Senior Member
    Messages: 555

    i have a few that are like bob's ...total all yearly charges then plit it up how you want to ...key here is it must start and stop (or renew) at yearly interval
  5. JLC

    JLC LawnSite Senior Member
    from IA
    Messages: 467

    I am also looking into doing this for the first time this year. I look at the situation from the angle of I want the best for my customer without having to put myself on the line badly. The best way that I have found to do this is to have some sort of contract for a 12 month period. This gives the customer the ability to pick and choose from the services they want and get to pay for it with a lower monthly bill. I will estimate the lawn per time then multiply by the average number of cuts per year. I've got mine set up such that either party can cancel with written notice and I will issue an invoice or credit upon termination depending upon where they are in terms of actual usage. I feel this is necessary as I don't think it is feasible to cut just weekly. I often times am cutting every 4-5 days during the spring, but it evens out in the late summer because typically the lawns burn up and I would be lucky to cut once every two weeks. My biggest concern is how to handle contract renewal if I have lost my shirt/made to much and compensating for that in the next contract year.

    Don't know if this help, I'm kinda rambling maybe because I don't feel 100% comfortable with this new payment option.

  6. Bob Shoaff

    Bob Shoaff LawnSite Member
    Messages: 64

    Could you email me a copy of the agreement you are working on? I would be interested in looking at it and then maybe I could offer my .02 on it. I would appreciate it.
  7. lawnboy82

    lawnboy82 Banned
    Messages: 957

    what i am doing this year is this-
    anybody who i am doing grass / fert / clean-ups and whatever else is paying me equally over the course of 9 months. everything else is extra other than what is in their contract and will be billed on the month of that service. anybody that i am also doing snow plowing for can pay me over the course of 12 months. and that is 12 equal payments of however much. anything else is extra. this is the way i am trying to do it for this year, i think it should work. cause i am betting on a drought for this coming summer. plus also i bid most of them for 28 cuts which should be a little more than i really need. plus the 2 guys that ask me to cut it twice a week i am not signing contracts with, due to the fact that i usually barter with them anyways. and they are always gettin something done. just use your best judgement. if you know that the rate of servicing is going to fluctuate severly during the course of the year then maybe this is not a good idea for you, however if you are at a constant then i would think it to be a good idea, and a way for you to keep your bills paid.
  8. Strawbridge Lawn

    Strawbridge Lawn LawnSite Senior Member
    Messages: 660

    I currently have 5 customers on a 12 month plan ranging in price from 90 to 165 p/month for 12 month.
    The DEC-Feb Income is a nice thingto have in this business if you are north of NC/SC.

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