Price Per Cut or Seasonal Rate????

Discussion in 'Business Operations' started by Five Points, Mar 6, 2012.

  1. Five Points

    Five Points LawnSite Member
    Messages: 208

    Hey Fellas Spring is soon to be here. Im just working on getting out my renewal letters. I'm changing from price per cut to seasonal, I think.

    I have my letter all prepared and prices but im abit anxious to follow through.

    Im heading into my 8th yr. I have about 65 clients. some have been contracts, condos and factories, but most are per visit. It has worked ok. i always have other work somewhere if the cutting is slow.

    Im just not sure about following through, cause it ain't broke

    Anyone done this and regretted or wish they had sooner. Did the costomers like it better. Its the mowing only not any extras.

    Thanks in advance Rob.
  2. crazymike

    crazymike LawnSite Senior Member
    from Ontario
    Messages: 452

    I would go per month for the season.

    a) you have a projected income for the season. Meaning, if it gets really hot in August you still make money. Per cut customers will tell you not come.

    b) you will save time on billing. Send a bill every month and wait for a cheque. Instead of tracking down a customer every month. You can even do direct withdraw payments or post dated cheques.

    c) you don't waste time on cheap people who want their lawn cut every once and a while

    d) lawns don't get overgrown by those cheap people
  3. StBalor

    StBalor LawnSite Senior Member
    Messages: 798

    I did this same thing a few years ago. Went from per cut to seasonal agreement with fixed monthly payment.
    Lost a few customers over it. My advice if you have had your customers for a few years you should know by now which customers will have a proplem with this and which ones wont.
    Send letters asking them if they would prefer a fixed monthly payment. the ones that say no, don't force them, you will lose them.
    all new customers put on seasonal agreements.
  4. Five Points

    Five Points LawnSite Member
    Messages: 208

    Thanks for the replies. I didnt give them the option per say but really explained in a lenghty letter what and why I was going this way. And stressed to call me if there were any concerns.

    i looked over my list of clients and didnt really think there was anyone who would kick up a fuss except one, and thats the one who made me decide to change.

    Isent most out today, so we will know more in a week or two. I think ittl be better. I hated guessing in front of ones house, then cutting it and feeling guilty or wondering if they thought i was being greedy. Or leaving it wondering if they wanted it cut. I think I can just do a better job. I know I wont be skipping it unless it is absolutely neccasary.:canadaflag:
  5. nickslawnltd

    nickslawnltd LawnSite Member
    Messages: 169

    I went to the seasonal service agreement 3 years ago and wish I had started that way from the start. All I. An think of are pluses for doing it as has already been mentioned. I also think it helps with having a better relationship with your customers. The loyaty is much better then by cutting on pers.

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