Good idea, or not??

Discussion in 'Lawn Mowing' started by willyy87, Jan 25, 2011.

  1. willyy87

    willyy87 LawnSite Member
    Messages: 11

    This year we are offering a one year contracts payable with a monthly flat fee for total property maintenance including mowing, trimming, aeration, irrigation, pruning, fertilization, and snow removal.

    We are targeting large commercial properties. We bid the project, then divide it by 12 to arrive at the monthly flat fee. We require monthly payments for the entire contract year. We have one large contract already, and are pursuing more.

    This seems to be very attractive to large property owners so that they can budget themselves more easily. It helps us by giving us a steady income year round. This approach requires carefull bidding, and specific contract wording.

    Let me know what you think of this approach, and have any of you ever tried this?

  2. GunnPropertyServices

    GunnPropertyServices LawnSite Senior Member
    Messages: 374

    sounds like a great idea to me, not sure how good it will work but sounds good
  3. twobroslawns

    twobroslawns LawnSite Senior Member
    Messages: 299

    That is what we, along with many others in our area do. We do it down to the smallest residential and it tends to work well, plus it seems like winter income...:)
  4. ed2hess

    ed2hess LawnSite Fanatic
    Messages: 14,378

    A lot of people want a low monthly which spreading it out does but you are including a lot of stuff that may make it look unreasonable to customers.
  5. h2oskier

    h2oskier LawnSite Senior Member
    Messages: 601

    I like the idea the only draw back i can see that could happen is when October hits and your not mowing anymore the check seems to stop as well.
  6. Sutherland

    Sutherland LawnSite Member
    Messages: 35

    we run landscaping payments on 8 monthly installments beginning in April. If they have plowing in roles into 12 payments. It's a great if you can get these comprehensive plans.
  7. willyy87

    willyy87 LawnSite Member
    Messages: 11

    When November hits, these customers will need our snow removal services. They will depend on us year round. I am confident that this will help our business grow. Thanks for the feedback!
  8. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Messages: 7,051

    You're hoping they will need your service. They could easily stop paying the installment and find a LB to do the snow on the cheap. That's when you lose out on everything. I'm a firm believer that when the job is done, I get paid. Ain't none of that worrying if you'll get your money. It may sound good on paper but in reality they can drop you like a hot potato and move on to the next guy that's willing to stick his neck out on the butcher block.
  9. fireman gus

    fireman gus LawnSite Senior Member
    Messages: 517

    We have a few clients that signed up for this type of payment plan and we have had no trouble with them fulfilling their obligation. However many clients don't like this because they don't want to think about paying for yard maintenence during the winter months.
  10. Sutherland

    Sutherland LawnSite Member
    Messages: 35

    The fact that they're paying for the services before they happen it certinally prevents that a little more.

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