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DillonB92
01-04-2011, 10:20 PM
I was reading in the lawn Care business school on here about "The benefits of and how to sell annual lawn care contracts."

I was curious to know how exactly this works. I understand the main concept. Say as in the example in the text:

his proposal is for: the property at the address above. Normal services include mowing, line trim, edging, blow off all concrete walkways/driveways. In this proposal the monthly fees are based on 34 services (visits) per calendar year as follows: Month = # of visits to be made under this agreement:

"Jan.= 1, Feb.= 1, Mar.= 2, *Apr.= 2, May= 3, June= 4, July= 4, Aug.= 5, Sept.= 5, Oct.= 3, Nov.=2, Dec.=2

Billing options: *Per cut (weekly In summer months) $ * * wk or Monthly billing with annual agreement $ * * per month. So for example the same lawn I had been quoting $25/cut or $85 /mo. before I would now do this.

If I want $25/ cut: *$25 x 34 services/yr = $850 divided by 12 months is $70.83. Rounded up I quote $25/cut or $71/month. "


So is he doing leaf cleanup in the winter for the same price as he would to mow the lawn? What about gutter cleanup or hedge Trimming?

Growing Green
01-04-2011, 11:26 PM
I'm not sure how they do it, but this is how I do it. I actually do include mulching and light tree trimming in my Premium Package and more with my Ultimate Package. I add the extra work into the total cost. So if it is $25 to mow the lawn then I add what I think the extra services would cost into the packages.

For example, if I think I will need to mulch once a year I will add, depends on size, but lets just say $100 to the whole bill. Then also maybe have to trim a couple of trees so that would probably be another $50 or so.

So I would multiply 34 services X $25 = $850 then I would add the $100 mulch and the $50 trim = $1000 / 12 = $83.33 a month.

Does that help?

Matt

Local Edge Lawn Care
01-05-2011, 01:14 PM
First off who are you doing a yearly for? commercial or residential? But in a year contract its all included gutters, snow, leaves, mowing, fertilizing etc, You just have to figure out what it will cost per item- estimate on how many times you will firtilize, hourly on clean ups then add that in etc.



Justin

lawn care service salt lake city utah (http://www.localedgelawncare.com)

DillonB92
01-05-2011, 09:28 PM
Right now it is Residential. I may try and get a commercial account this year for the neighborhood i live in. What if you have some large yards and some small yards? Say 25 for small and 60 for the large?

Steve
01-06-2011, 05:21 PM
Are you asking if that is a good price range or how should you charge them with an annual contract?

I didn't understand your question there.

DillonB92
01-07-2011, 03:58 PM
how to charge if its abig yard and your prices are for smaller yards aren't you loosing a lot of Money?

Steve
01-09-2011, 03:07 PM
I would think you would just scale the price to the size of the property so if it is a $25 lawn, you would use your example above:

If I want $25/ cut: *$25 x 34 services/yr = $850 divided by 12 months is $70.83. Rounded up I quote $25/cut or $71/month. "

If the lawn is a $35 lawn, just change the price in the equation:

If I want $35/ cut: *$35 x 34 services/yr = $1190 divided by 12 months is $99.61. Rounded up I quote $35/cut or $100/month. "

Does that help?

tk4454
03-12-2013, 12:42 PM
I am trying to place a bid for an anual contract, except not the full year, just from april 1- oct 30 which include 21 mowings. I have found good templates for one mowing , but not a good one to propose a season long quote with a discount, anyone have a good template/contract for that? thanks in advance

Caskey Lawns & Landscapes
03-12-2013, 01:31 PM
You don't need a template.............

Whatever the number of weeks ( service days ) you are using as a basis X the amount you are charging divided by the number of months that you want to spread the payments over....


$25.00 x 21 = $525.00

divide that by ( april through October is ) 7 months = $75.00 per month


Hope that helps....

tk4454
03-13-2013, 12:27 AM
yes that helps, but i would like to have a contract the customer can sign saying they agree to pay the 525.00. maybe it doesnt need to be anything fancy and i just have to write it up

Steve
03-13-2013, 01:21 PM
Have you checked in the lawn care contract template section (http://www.gopherforum.com/showthread.php?t=7210)?

Will you be charging them per month only for the mowing months or do you want it spread out over 12 months so the monthly price is cheaper for the customer but you get paid all year long?

CHEESE2009
03-14-2013, 10:27 AM
I didn't read anything on here but the title.

Basically, long term contracts where clients are paying longer term for multiple services, can backfire.

Think of when they cancel, or want a refund. Complicated man, especially if you're giving a 'discount' for them signing up for everything all at once, you can lose big time and have a lot of trouble getting balances paid on services.

grass guru
03-14-2013, 10:53 AM
Agree w/cheese. I prefer 6 month agreements for lawn service only. Upsells prefered due at completion, and snow removal is its own contract. However, proven clients I will do longer agreements, or include snow removal in agreement. All agreements are paid in full by end of calender year. New customers pay up front at least 1 month.

SNethercutt
03-15-2013, 09:38 AM
Just remember when you do this that you bard financing your work out to get a paycheck 12 months.

I just did a new one yesterday for one of my customers.

34 mowings x $40 each
5fertilizations x $40 each
$768 to mulch
$120 a month to maintain beds
There were a few other things in there as well but you basically figure what you would charge for something, how many times will you do that service is a year. Add it all up and divide by twelve. This customers came our to 322 a month.

If the place is in rough shape I charge extra for the first month.just be sure you double check and male sure you covered everything that customer wants. If you sign the contract for 200 a month, and forgot to add in mulch, your screwed. So just double and triple check.

Every new customer I get is given a paper that says what services might you be interested in this year? And that can read through the list of services and check some off. But what you do is give a slight discount on what services you can, to maks the contract seem like a better deal.

tk4454
03-15-2013, 10:14 AM
thanks for your input, i was only planning on 7 months from april 1st to oct 30, no snow for me. , but i see your point about things getting tricky. i am also leaning towards having them pay per service or monthly because my initial idea was to give them a discount for paying in advance, but really id be making less money. so im kinda undecided now and will just do whatever the customer wants

SNethercutt
03-15-2013, 01:36 PM
The way I set mine up I get the same amount for 12 months. So in November December January and fedruary when I only mow once a month, I'm still making good money. Plus I doubled my income from that one yard. They were paying 160 a month just for mowing. Its all how you want to do it. But for me winter is a killer without these kinds of accounts.

kslawn
04-01-2013, 07:44 AM
I do a 7 month plan in summer & a 5 month plan in winter, but in the U.P. of MI. so summer is shorter & winter longer than most.. I do # of weeks cutting + clean ups, & anything else they may want done & total it all up & then subtract discount if your offering one then divide by # of months...example: 25 per cut x 20 weeks=500 +100/clean up=600 divided by 7 months =85.71 rounded up to 86.00 per month, if you offer discount take that off the total then divide x 7 months..a 2% disc. would be 84.00 per mo at 7 mo's