A monthly price sounds higher than the equivalent per-cut price!

Discussion in 'Lawn Mowing' started by Mr. Magpie, Oct 20, 2005.

  1. Mr. Magpie

    Mr. Magpie LawnSite Senior Member
    Messages: 327

    If I have a prospective customer who wants weekly service:
    1) If I tell him a "per cut" price, it will be $30. or,
    2) If I tell him a monthly price, it must be adjusted to $130 (in order to be equivalent).

    Question: What do you "monthly" guys do when the "per cut" guys get the job because they SEEM (to the customer) to be cheaper???!!!
  2. Brianslawn

    Brianslawn LawnSite Silver Member
    Messages: 2,002

    i give them a higher price when they call me back 2 months later when cheaper guy disappears
  3. Mr. Magpie

    Mr. Magpie LawnSite Senior Member
    Messages: 327

    Aha, but the other guy is not really cheaper, so why are you assuming he is gonna disappear??!! Gotcha
  4. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Messages: 2,128

    um, I hate to burst your bubble but the by the cut guy is cheaper. 30X4= $120.... you at a per month charge is $130. Am I missing something? or did you do your math wrong?
  5. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Messages: 7,547

    Actually the price would be closer to $100 per month. Unless you mow every week all year long. I do every week apr-oct, and every other nov-mar.
  6. cookedonphonics

    cookedonphonics LawnSite Member
    Messages: 47

    Actually, there are 4.3 weeks in a month.

    4.3 x 30 = $129.00 ($130 rounded up)

    So that makes you 23 cents more per week by rounding it up when charging monthly.... No wonder they go with the other guy, your prices are WAY out of line.... :laugh:
  7. General Landscaping

    General Landscaping LawnSite Senior Member
    Messages: 801

    Two things can happen.
    Somebody's gonna pitch a fit when that 5 mow month comes through the mail.
    Somebody's gonna be scratching thier head when 5 cuts got billed as 4.

    To answer the question..... sell by the year or educate the customer about 4.3 weeks/month..... let them know the other guy will be sending bills for $150

    Sell the bugeting convience of yearly pricing to your customer. $105/mo all year long. Make sure you get ahead on your money through the slow months or have an airtight contract that allows you to bill per cut if the year is not completed
  8. Brianslawn

    Brianslawn LawnSite Silver Member
    Messages: 2,002

    is the price per month year round or 8, 9, 10 months during mowing season. ive had so many people call me at the end of the summer saying last guy just disappeared. even some that dropped me for someone cheaper. customers often bite on the cheapest price or cheapest sounding price instead of $30 a week or $130 month for mow season... go $100 or $110 for 12 months. problem with that is they like to cancel after busy season and not pay 'off' months. have to have a 12 month contract and if they cancel early they owe remainder months or get charged $x per mow for # of times mowed. maybe try 2 or 3 payment plans. lump sum at begining of year, $x per cut, or $x per month. let them decide which one of YOUR prices is the cheapest or best for their budget.

    now can i have change for my 2 cents? :p
  9. cajuncutter

    cajuncutter LawnSite Senior Member
    Messages: 626

    You got it all wrong. Well kind of. This is how my monthly billing works. Down here I average 42 visits per year. I take $30x42=1260. I then divide that $1260 by 12; 1260 / 12 = 105. That would be $105 per month. Now some say just cut it and get paid per cut and manage your money. I am one of those types that Murphy's Law seems to strike when ever I have "extra" money lying around. So I have decided to let my customers manage my money for me :) . Also when Fall clean up starts, which is only a couple of weeks away, I charge extra for leaf and debris removal. We will grind up what we can however if there is excessive leaf mulch it needs to be removed. Also when there is storm damage be it winter, spring or summer there is an extra charge for that clean up as well. That $105 price is for mow, edge, weedeat and blow only.
  10. Mr. Magpie

    Mr. Magpie LawnSite Senior Member
    Messages: 327

    I mow all year round, don't you guys see my location!

    How many of you have tried to explain the weekly-to-calendar day adjustment? Tough explanation to most people in the US who have forgotten how to listen and learn.

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