yearly rates VS monthly rates

Discussion in 'Lawn Mowing' started by KDLAWN, Jan 24, 2005.


    KDLAWN LawnSite Member
    Messages: 100

    ok.. I have a qiestion on pricing a yearly contract VS a monthly contract.. here is my rates.. this is just mow, blow trim and edge...

    monthly basic 160/month.. 42 cuts a year from march to nov.
    yearly basic 140.month.. 42 cuts a year from march to nov. and drop by once a month to maintain the yard from dec. to feb.

    this is my rates with flowerbeds added.. includes straw or bark, weeding and some flowers...

    monthly rate 180/month
    yearly rate 160/month

    does this sound ok.. give me some feed back on how you price when beds are involved.. is my monthly rate suppose to be more or less expensive than my yearly rate?.. if you need some clarity on this .. please let me know


    KDLAWN LawnSite Member
    Messages: 100

    ok. this is just on one yard.. ok.. not every yard.. is $5.00 per week (20.00/month) enough offset from monthy to a yearly contract?
  3. osc

    osc LawnSite Senior Member
    Messages: 502

    Why would you want to get less money for a longer term? People aren't going to give you a whole year's pay upfront so what are you talking about?

    I would build my business on those customers who will pay the full price with a year's contract and you shouldn't have time for people who only want a few cuts.
  4. CuttingCrew

    CuttingCrew LawnSite Member
    Messages: 193

    The price is the same for my customers regardless if they get billed monthly during the season or across a twelve-month year. I just divide the yearly estimate by nine for the season or twelve for the year. No change in total price and I prefer to get paid all year long.

    For mowing, blowing, edge and trim,
    If I’m reading you post correctly, you actually charge you customers 16% more in a year if they pay you over a twelve month/payment instead of a nine payment contract? ($1440 over 9 months –vs- $1680 over 12 months?) And the difference is to cover the three stops you make to maintain their yard over the winter months at $80 per stop, more than twice what their paying you to cut the lawn ($34.28 based on you figures) per visit.

    If it’s working for you keep doing it! I don’t know how things grow for you guys down south, but the only thing on the lawns during December, January and February to maintain in Cincinnati is snow. If there’s not snow on the ground, nothing is growing and the only thing to maintain is picking up sticks that have fallen off the trees since the fall cleanup. I’d have a hard time getting any of my customers to buy into winter maintenance here.

    If their willing to pay, you should be glad to receive!

  5. DennisF

    DennisF LawnSite Bronze Member
    from Florida
    Messages: 1,381

    If you charge $160 per month for 9 months and cut 42 times that is $34.28 per cut.

    If you charge $140 per month for 12 months and cut 42 times that is $40.00 per cut.

    Lets say the 3 monthly visits that you make in Dec, Jan, and Feb cost you $20 in time and gasoline to get there. That's $60 in expense for those three months. Now the difference in revenue per cut:

    $40.00-$34.28 = $5.72 more per cut for the 12 month plan

    $5.72 X 42 = $240.24 extra revenue.

    $240.24 - $60... for 3 months expense for Dec, Jan, Feb = $180.24 more per year from each account.

    If you can get the customer to pay $240 more per year for basically the same service...I say go for it.
  6. Precision

    Precision LawnSite Silver Member
    Messages: 2,995

    My question is how and why are you getting 42 mows between march and Nov. That is more than once per week.

    I go all year round and mow March thru November every week and Nov - Mar EOW and that only averages to 42 cuts per year.
  7. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Messages: 1,912

    Thinking the same thing ?? 42 in 9 months is off

    PMLAWN LawnSite Gold Member
    Messages: 3,534

    I push for yearly contracts on all my stuff but stop every 2 weeks during the winter. Was cutting grass up to a week ago. But if they don't want the program (cutting, weed control program, shrub trimming) they go to a "by the cut" price. I don't do any monthly billing except for a full 12 months.

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