Calculating for yearly contract

Discussion in 'Starting a Lawn Care Business' started by AllanP, Mar 25, 2006.

  1. AllanP

    AllanP LawnSite Member
    Messages: 19

    I cant find this info anywhere.:(
    Most Lawn services around here use yearly contracts. I am trying to figure out how to come up with a yearly price for my customers.
    Do I figure what I would bill during the growing season and bill for that every month of the year. Or do I figure per cut and figure how many trips I will make to the customer and average it out over the year?:confused:

    Also- What about customers that dont want to do a yearly contract, but just want service for the growing season, do I charge more per cut?
  2. nephilim0167

    nephilim0167 LawnSite Member
    Messages: 144

    You obviously need to offer some sort of a reason for a client to sign an annual contract. I'm not sure about your area but we mow here 52 weeks a year. I would figure out how many times you're going to service their property, multiply it by how much you charge per visit, and then figure out how much you can take off of it and still make a nice profit. Then you'll be able to toss it out there in your offer. "If you take advantage of my annual contracts you can save X%". Just use your words wisely and outsmart them. It's a fun game :)
  3. Mr.Mow-It-All

    Mr.Mow-It-All LawnSite Senior Member
    Messages: 506

    Yeh, I put on my fliers that they will get 2 FREE mowings with a signed year contract. The 2 mowings sounds pretty good to them, but when broken down is not even 10% off. And 10% off doesn't sound as good as 2 free mowings off (to me anyway). Here is an example of one I did today (a small residential) $35 per mow x 26 (because 2 of them are free)= $910 then I added the 6 weed killer applications of $15 each= $90, then added 2 pre-emergents and 1 post emergent @ $50 each = $150,,,,,,910+90+150 = $1150 divide that by 12 months and get = $95.83 per month.

    And man I can't even imagine being able to mow 52 weeks of the year. That would almost double all of my contracts, we are set up on 28 week per year service. That sure would be nice. Knowing the kind of money in this biz, and the kind that we make in this area, I can't imagine what the potential is down there.
  4. chriscraft

    chriscraft LawnSite Senior Member
    Messages: 390

    we generally base all our contracts on a 26 week cutting season. any pre pays in full for the 26 weeks must be paid by june 1st get a 10% discount on all work for the season. we multiply cut price say 20.00 X 26 weeks +520.00 minus 10% 52.50 so they must pay 467.50 by june 1st to recieve the discount. we generally cut 28 weeks so at the year end they are billed for 2 more weeks. If we did 28 cuts less the 10%, they recieve 10% off seeding aerating fall cleanups also. If you do it our way make sure you stipulate the pre pay is for X amt of weeks and does not include other service xtra cuts etc but they will still recieve a discount for any extra work. We ahve about 100 cutting accts that pre pay this way. It really helps get the season off to a good start

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