billing question

Discussion in 'Lawn Mowing' started by HOMER, Jul 9, 2001.

  1. HOMER

    HOMER LawnSite Gold Member
    Messages: 3,183

    Maybe I should have posted this on the business section but I know everybody bills somebody.

    My question:

    I put some of my customers on a 30 cut plan..............OK.

    If the yard I cut is a $40.00 yard then I multiply the 30x40 to get $1200.00 for the year...........................OK.........Got it?

    $1200.00 div. by 12 months = $100.00 a month..........right, ya with me so far? I'm sure you are.


    1. Take $40.00 off and invoice for $60.00 or
    2. Invoice for the 2 mowings at the per cut price? $80.00

    If any of you are faced with this dilemma then tell me how you handle it.

    Most of the time I bill the per cut price for the # of times I've cut, whether that's fair ir not I don't know.
  2. Kent Lawns

    Kent Lawns LawnSite Senior Member
    from Midwest
    Messages: 870

    The short answer is don't skip them. Edge, do some trimming, whatever.

    I tell my customers they're buying a spot on one of the routes. They pay either way.

    Anyway, bill them for the 2 cuts. You'll find a place for that money and besides the 2 times you are cutting it's like 110 degrees.
  3. carl28

    carl28 LawnSite Member
    Messages: 37

    don't take this the wrong way but where do you cut in the northeast a contract is a contract if I bid the lawn at 40 dollars per cut I bill 40 dollars per cut at the end of the month that year round billing crap only works if you have a million dollars in your pocket for those of us who don't i bill for work completed or on a monthly basis for a bid regardless of work required they won't send me a check for $40 if i have to cut twice times in one week.
  4. crazygator

    crazygator LawnSite Bronze Member
    Messages: 1,048

    Since it seems that you are billing on a 12 month basis then just deduct it from the 12 month paying plan. If not then you may confuse your customers.
  5. HOMER

    HOMER LawnSite Gold Member
    Messages: 3,183

    Maybe this is harder than I thought!

    Maybe not.

    I just figured it out. At the end of the year I will have overcharged these folks.

    For instance.

    If I am charging a guy $1200.00 per year and miss 1 cut in that years time then his total for the year should be $1160.00.

    My way of doing things has been wrong........I would have charged him $1180.00..........just had to take the time to decipher it.
  6. Chopper Lover

    Chopper Lover LawnSite Senior Member
    Messages: 288


    If it is an "annual" contract I don't deduct for a skipped mowing and I don't add for more than one mowing a week (if that were to ever happen) or extra mowings at the end of the season above 30. In a way you are doing them a favor by breaking it down over 12 months because it allows them to budget their money rather than get slammed a few months out of the year.

    If it is a "per mowing" contract I guess you will have to give a reduced bill at the end of the season, especially if you were going to add more money to the bill for each mowing over 30/season.

    I think Kent makes a good point about stopping by and doing something, even if it is just a trim and/or blow of the walks and patios to keep the place "perky".

    From your post it does not appear you get the concept of the annual contract. Annual Contracts provide a specific maximum amount of service for one season for a specified price to the consumer. It is guaranteed income even if there is a drought and the grass doesn't grow. In Homer's situation he has at least $100 coming in EACH MONTH of the year. That is just from one yard. If he has 40 yards in the same plan that is $4000/month no matter what!

    So what does that do for Homer? Even in January when Homer is watching TV and the others are out searching for work, Homer is still getting paid for mowing thier lawns that may have a few inches of snow on them... Not bad for a bunch of "Year Round Billing Crap"!

    Be Safe!
  7. CSRA Landscaping

    CSRA Landscaping LawnSite Bronze Member
    Messages: 1,232

    Wow, Carl! That stream-of-consciousness reply sort of left me dizzy! I mean, that's really got to be a talent! I must admit, however, that I didn't get what you meant, except that you didn't like what Homer was saying.
  8. Carl do yourself and us a favor. Take English composition class at your local community college.

    I frankly can't understand anything you have written today.
  9. HOMER

    HOMER LawnSite Gold Member
    Messages: 3,183

    That crap is what allows me to spend my days on Lawnsite during the winter months. We may not get smow but the way it works is in the summer I am loosing money. I cut 3 or 4 times but only bill for a set amount, which is lower than it would be at the per cut price. In the winter when I only go once I have actually accumulated a credit so that they "owe" me the extra.

    It's just averaged out.

    When I miss a cut though I cannot hold them to paying me the full amount. Somewhere along the line you have to balance the books so to speak. They don't want to pay you for nothing. It would be like doing things on a per cut basis..........not cutting the yard but billing them for it anyway..................I don't think too many people would go for that. If I didn't have the time to stop and cut it, which is what we are most efficient at, then I sure don't have the time to do anything else. Sometimes you run out of month!

    This goes back to the 10 day crap. My weeklys get cut on time, my every now and thens are the ones that upset the apple cart. They're the ones that need dumping..............just too nice of a guy to tell them.:D

    Are you with me so far? Life in the fast lane........surely makes you lose your in the fast lane...uh huh!
  10. kris

    kris LawnSite Bronze Member
    from nowhere
    Messages: 1,578

    We always show up even if it doesn't have to be cut....This may not work if they are not full service accounts( then you can spend time in shrub beds etc) said before ..if it is a per cut contract then you may have to discount.... I word our contract something to this effect...cut to a maximum of 24 times per season...spring and fall cleanups extra at a cost of ___$...doesn't say anything about minumum times...example today..commercial property didn't need to be cut so the crew just picked litter and trimmed....half the time spent but that's the way it is.
    ps. I have 3 accounts that are on the 10 day cut...NEVER AGAIN!! We will fulfill the contract this year and then they are either on every 2 weeks ( which we have none right now) at a higher price or weekly.

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