Charging Customers Per Month (year round)

Turf Management

LawnSite Member
Location
Kansas
Has anyone had experience charging customers on a monthly basis, year round? I think this would be a great way to keep income strong during the winter and sell additional services the customer wouldn't have otherwise bought.

I am considering setting up a $99/month lawn care program.

This would include:

28 cuts * $35/cut = $980
Unlimited residential snow = $150
Aeration = $100

Total = $1,230 ($102.50/month)

This would be the rate for up to 12,000 sq ft.


Additional services could be purchased as requested and fertilization could be added to the monthly rate for $25/month. Additionally, customers will be billed so that they are always paying ahead for the next month, effectively preventing delinquent accounts under this program.

I would also write in the program contract that if the program was ended prior to 12 months, the customer will be responsible for paying the true rate of services minus what was already paid.

Thoughts?
 

FoghornLeghorn

LawnSite Senior Member
Location
Texas
Why should anyone respond to another one of your posts when from your very first posting, you asked for advice and then argued with everyone's advice? There was so much bickering back and forth, and you really got under everyone's skin with your dismissive attitude of their good sound advice. Then the thread got deleted.

You came across like you knew everything, so why waste our time again with another bit of that nonsense?
 
OP
Turf Management

Turf Management

LawnSite Member
Location
Kansas
Why should anyone respond to another one of your posts when from your very first posting, you asked for advice and then argued with everyone's advice? There was so much bickering back and forth, and you really got under everyone's skin with your dismissive attitude of their good sound advice. Then the thread got deleted.

You came across like you knew everything, so why waste our time again with another bit of that nonsense?
If you don't want to help, don't. It's just an idea I am playing with. I requested the last thread be deleted to end that nonsense. I think it would be in everyone's best interest to leave it there. Agree to disagree.
 

NEW CITY LAWN CARE LLC

LawnSite Bronze Member
Location
Medford, OR
Has anyone had experience charging customers on a monthly basis, year round? I think this would be a great way to keep income strong during the winter and sell additional services the customer wouldn't have otherwise bought.

I am considering setting up a $99/month lawn care program.

This would include:

28 cuts * $35/cut = $980
Unlimited residential snow = $150
Aeration = $100

Total = $1,230 ($102.50/month)

This would be the rate for up to 12,000 sq ft.


Additional services could be purchased as requested and fertilization could be added to the monthly rate for $25/month. Additionally, customers will be billed so that they are always paying ahead for the next month, effectively preventing delinquent accounts under this program.

I would also write in the program contract that if the program was ended prior to 12 months, the customer will be responsible for paying the true rate of services minus what was already paid.

Thoughts?
Let me tell you from experience this is ALL I do, and works very well, just communicate with the potential customer and everything will work out just fine for you....
 
OP
Turf Management

Turf Management

LawnSite Member
Location
Kansas
Let me tell you from experience this is ALL I do, and works very well, just communicate with the potential customer and everything will work out just fine for you....
Thanks New City. My only real concern is having customers drop off in October and then not paying off the remaining balance of services provided. I will have all this written out in the contract of course but we all know if a customer isn't going to pay they will usually find a way to avoid doing so. Do you have any problems with this?
Posted via Mobile Device
 

NEW CITY LAWN CARE LLC

LawnSite Bronze Member
Location
Medford, OR
Thanks New City. My only real concern is having customers drop off in October and then not paying off the remaining balance of services provided. I will have all this written out in the contract of course but we all know if a customer isn't going to pay they will usually find a way to avoid doing so. Do you have any problems with this?
Posted via Mobile Device
You know I don't have a real big problem with this, but I charge a flat rate per month, probably a little more than your calculations, but I do have a couple who every year bump me down to 2x a month for half the bill for 3 months, but all in all I keep the customer, they are happy, I still make money, etc... so It does happen but I just deal with it and live with it to keep a customer here and there.....
 

weeze

LawnSite Fanatic
i live down south and we mow 8 months and do leaf cleanup 2 months out of the year. we do nothing in jan and feb. no snow removal :laugh: i still don't do the 12 month thing. i just charge by the month and take off two months and start back. this way you avoid any problems of them not paying in the slow months. either way you get the same amount of money. i think they like the break since it's right after christmas and they've spent alot of money on presents. it kindof gives them time to recover. if you do snow removal then 12 month plans should work since you would be working year round non stop. just make sure they do want snow removal before going into that plan. otherwise they might tend to stop paying in the winter months.
 

orangemower

LawnSite Silver Member
Location
pa
I do it for mowing only for a few customers. Anything else is extra. It works out good as I have a few checks coming in for the 3 month down time we get in my area.
 

MR-G

LawnSite Senior Member
Location
CENTRAL FLORIDA
we offer a monthly rate contract if they sign between sept 1st to dec 1st this way they pay the monthly rate during the winter months first....then we mow at that price for 12 months...if they want to start after dec 1st we offer them a per visit price until sept 1st then we will put them on the monthly rate.....this way we dont cut them at a monthly rate the first summer only to have them cancel in the winter where we would have made most of our money...once they are on the monthly rate we keep them there year after year...
 

ralph02813

LawnSite Bronze Member
Location
Charlestown, RI
we offer a monthly rate contract if they sign between sept 1st to dec 1st this way they pay the monthly rate during the winter months first....then we mow at that price for 12 months...if they want to start after dec 1st we offer them a per visit price until sept 1st then we will put them on the monthly rate.....this way we dont cut them at a monthly rate the first summer only to have them cancel in the winter where we would have made most of our money...once they are on the monthly rate we keep them there year after year...
To me this seems the only way to do it, unless you have a signed agreement and preapproval to charge their credit card in 12 equal payments. So do an annual charge divided by 12 equal payments. I know it is slight of hand with words, but that is important.
 

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