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CFD192
02-10-2011, 08:27 AM
For the companies out there who provide annual contracts, could you please give me some input on how you provide those services.

Also say your normal mowing season is 23 weeks, how do you cover if you have a dry summer and you only mow 20 weeks or have to mow 26 weeks?

how do you go about finding out what to charge for a year, per month? say you offer one clean up, most you can cover at the monthly price but you have one that takes two days?

I have an example of what I would like to add for a yearly contract just don't know what to make the prices or how to go about doing it. any help would be greatly appreciated.

So here is what I have so far. I have mowed at most 23 weeks, mostly 20weeks, so far in the 3 years, so I took my normal $40 yard x 23 mowings = $920 plus $40 for the one time edging = 960/12= $80 to start for my basic package.

Bronze package
on properties up to 30,000 sq ft.
services included on a weekly basis
- mowing
- weedeating
- edging to include one edging in the spring
- leafblowing of all walks, drives, and hard services
$80 a month or if pay for year discount to $900 for the year a 5% discount.

Silver package
all services included in Bronze package plus
-1 hedge trimming in the early summer
-1 spring and fall leaf cleanup
$120 per month($1450 value) or if paid in full $1300 10% discount

Gold Package
all services included in silver package plus
-Scott's 4 step lawncare fertilizer program application
-early spring, late spring, summer, and and fall application
- 1 aerating, dethatching, and overseeding in the spring
$170 a month($2050 value) or if paid in full $1740 15% discount

CFD192
02-11-2011, 09:05 AM
anyone?....

jsthomas06
02-11-2011, 11:50 AM
looking at your calculations, would you be dividing your total by 12 months, or by the number or months you mow??? I know my commercial accounts like a year long contract in keeping the cost down, but would residential want to pay you in the winter time?? Just a thought.

CFD192
02-11-2011, 01:59 PM
yes it would be by 12 for both residential and commerical. I always do snow plowing, so I would just incorporate that with the monthly price.

Steve
02-11-2011, 06:41 PM
how do you go about finding out what to charge for a year, per month? say you offer one clean up, most you can cover at the monthly price but you have one that takes two days?

I have an example of what I would like to add for a yearly contract just don't know what to make the prices or how to go about doing it. any help would be greatly appreciated.

So here is what I have so far. I have mowed at most 23 weeks, mostly 20weeks, so far in the 3 years, so I took my normal $40 yard x 23 mowings = $920 plus $40 for the one time edging = 960/12= $80 to start for my basic package.

Ultimately, I would think that you would want to figure out what your average # of mowings would be and how long the cleanups would be. It would be difficult or near impossible to account for everything.

Maybe you could put in your contract that if the cleanups or mowings exceeded a certain amount of time or number of mowings, you would have to add an additional charge. That could help cover you in the event of an unexpected problem.

AttractiveLandscape
02-14-2011, 07:43 AM
For the companies out there who provide annual contracts, could you please give me some input on how you provide those services.

Also say your normal mowing season is 23 weeks, how do you cover if you have a dry summer and you only mow 20 weeks or have to mow 26 weeks?

how do you go about finding out what to charge for a year, per month? say you offer one clean up, most you can cover at the monthly price but you have one that takes two days?

I have an example of what I would like to add for a yearly contract just don't know what to make the prices or how to go about doing it. any help would be greatly appreciated.

So here is what I have so far. I have mowed at most 23 weeks, mostly 20weeks, so far in the 3 years, so I took my normal $40 yard x 23 mowings = $920 plus $40 for the one time edging = 960/12= $80 to start for my basic package.

Bronze package
on properties up to 30,000 sq ft.
services included on a weekly basis
- mowing
- weedeating
- edging to include one edging in the spring
- leafblowing of all walks, drives, and hard services
$80 a month or if pay for year discount to $900 for the year a 5% discount.

Silver package
all services included in Bronze package plus
-1 hedge trimming in the early summer
-1 spring and fall leaf cleanup
$120 per month($1450 value) or if paid in full $1300 10% discount

Gold Package
all services included in silver package plus
-Scott's 4 step lawncare fertilizer program application
-early spring, late spring, summer, and and fall application
- 1 aerating, dethatching, and overseeding in the spring
$170 a month($2050 value) or if paid in full $1740 15% discount

yes it would be by 12 for both residential and commerical. I always do snow plowing, so I would just incorporate that with the monthly price.

I do a 12 month service contract for residential only. I include mowing, weedeating, edging (when needed), blowing, 1 spring clean-up (includes 1 mulch), 1 fall clean-up, and then switch the services to plowing in the winter. I have different pricing for the contracts depending on how many houses are in the vicinity (HOA's, etc.).

Steve
02-14-2011, 11:12 AM
How do you figure out how much to include in your annual contract to cover the snow plowing which can potentially vary greatly?

CFD192
02-15-2011, 08:59 PM
I was just going to add my snow removal on a as needed basis due to that fact. I really want to do the money as listed because that puts me a little above what i made off each customer last year, so I see it as a way to offer more, plus add money in my bank. The mowing prices stay the same but the additional services help have more profit. Trying to sell the services seperately is alot harder to sell. I also thought about doing custom packages as well.

Steve
02-16-2011, 12:18 PM
Maybe they could be covered for an average amount of snow fall for your area and anything past X amount of snowfalls would allow you to charge extra per snowfall?

LawnMoore
02-17-2011, 01:39 AM
Im still trying to get something going like this too so idk if im pro help, but..

It just seems like 80 per month is too low imo..

I have 1 client that is my low/no money maker client..

he has 1 acre lot, pays me 200 per month to mow it weekly.. 50per mow/weedeat/blow/i edge it sometimes although he says not to worry about that..

my other 1/2 acre lots i get 45 for bi weekly, and have 1 @ 50 per bi weekly.

im not sure how much diff 1 acre is from 30k but it's not much..

AttractiveLandscape
02-20-2011, 11:35 AM
How do you figure out how much to include in your annual contract to cover the snow plowing which can potentially vary greatly?

Very true, especially in my region! I play the numbers game... I take a sub-division that the yard would take no more than a half hour to mow and the drive no more than 10 or 15 minutes to plow... Now your going to have a month or two that you do nothing really at all, I call those make up months. You have say..... 250 homes in a sub-division and you sign 75 of them @ $80/mo. = $6000 Gross. Your homes are all in one spot for this area and you can easily get all these completed on a regular 40hr work week with two guys. If your guys aren't doing that then get new ones as there are plenty of people out there that want the work and will bust their butt for you. Lets say with labor included ($12/hr a guy, 40 hrs) and your gas gives you expenses are $1100/wk that gives you a net profit for the month totaling $4900 x 12 = $58,800/yr. per 75 house sub-divisions you nail down. Dedicate a two man crew... run a 4 man crew get it done in half the time and get a second sub-division done in a month... make your agreement auto renew unless written cancelation is received and flyer the sub-division again and possibly gain some homes... hit an HOA of 300 homes and dedicate (2) 4 man crews... volume and your customers trust makes money. Make sure you put in a clause for annual price increase and bump everyone $2/wk the following year... make sure you send a written notice out though! You do good work and it will spread like wild flowers and your business will grow! Keep your overhead to a bare minimum. I always drive around look at the work and sometimes stop if the customer is home and outside. Get personal (friendship) with them if they require.

Steve
02-20-2011, 12:54 PM
250 homes in a sub-division and you sign 75 of them

What is your view on how to sign up such a large % of homes in one area?

make your agreement auto renew unless written cancelation is received

Also, how do you go about getting started in the new year when you have an auto renew contract?

Do you just start showing up again, or do you send a letter out first or maybe call first? Or what is your suggestion?

AttractiveLandscape
02-20-2011, 09:11 PM
What is your view on how to sign up such a large % of homes in one area?

In most cases you want to hit the HOA's hard. But on the hand that they aren't HOA's then it is like this... 250 was really a number pulled out of a hat but the math in marketing is like so... you should be able to get in front of half the amount of people you solicit. Of those half that you solicit you should be able to sign half of them. If you cannot do this then you are lacking somewhere... maybe it is your pitch or maybe it is your inability to listen... really couldn't say without watching and observing ones sale.


Also, how do you go about getting started in the new year when you have an auto renew contract?

Do you just start showing up again, or do you send a letter out first or maybe call first? Or what is your suggestion?

I call everything an agreement, never and I mean never a contract, my agreements are all worded with agreement in place the word contract. People hear the word contract and you might as well kick yourself out the door. People make agreements daily and they make contracts on occasion. It is really a play with words but they are trigger words used in sales that are easier to use and non-offensive... wouldn't you agree?:D

Hedgemaster
02-20-2011, 09:37 PM
In most cases you want to hit the HOA's hard. But on the hand that they aren't HOA's then it is like this... 250 was really a number pulled out of a hat but the math in marketing is like so... you should be able to get in front of half the amount of people you solicit. Of those half that you solicit you should be able to sign half of them. If you cannot do this then you are lacking somewhere... maybe it is your pitch or maybe it is your inability to listen... really couldn't say without watching and observing ones sale.




I call everything an agreement, never and I mean never a contract, my agreements are all worded with agreement in place the word contract. People hear the word contract and you might as well kick yourself out the door. People make agreements daily and they make contracts on occasion. It is really a play with words but they are trigger words used in sales that are easier to use and non-offensive... wouldn't you agree?:D


While I think signing "half" the people to speak to is wishful thinking, I completely agree with you on "word usage". It's a factor in everything.

Years ago I used to work at a full service gas station (you kids can Google that ;) ), and if I didn't really feel like checking someone's oil, I'd say "Do you need your oil checked?" The usual reply was , "No, that's OK."
However, if I were to ask "Would you like your oil checked today?", the answer was almost always "Yes". Body language and "tone" are a factor as well, but I was never "snotty" when I used the "need" phrase, and it still worked to get me out of opening the hood on a freezing January night.

AttractiveLandscape
02-21-2011, 09:26 AM
While I think signing "half" the people to speak to is wishful thinking, I completely agree with you on "word usage". It's a factor in everything.

A good salesperson with a good pitch should land you half on average. You may land more than half one time and less than half the next, but none the less you are somewhat right in saying it is wishful thinking for some. Most have already beaten themselves before entering the sale...;) Plus your actually signing 25% of those you get in front of....

Years ago I used to work at a full service gas station (you kids can Google that ;) ), and if I didn't really feel like checking someone's oil, I'd say "Do you need your oil checked?" The usual reply was , "No, that's OK."
However, if I were to ask "Would you like your oil checked today?", the answer was almost always "Yes". Body language and "tone" are a factor as well, but I was never "snotty" when I used the "need" phrase, and it still worked to get me out of opening the hood on a freezing January night.

Pretty smart if your not the one profitting from it...:cool: Good example.

Steve
02-21-2011, 07:02 PM
That is a very good point. How would you suggest you go about getting started in the new year when you have an auto renew agreement?

Do you just start showing up again, or do you send a letter out first or maybe call first? Or what is your suggestion?

AttractiveLandscape
02-21-2011, 07:22 PM
That is a very good point. How would you suggest you go about getting started in the new year when you have an auto renew agreement?

Do you just start showing up again, or do you send a letter out first or maybe call first? Or what is your suggestion?

Lol, sorry Steve. I was thinking it but forgot to type it last time...:rolleyes: I always send letters letting my customers know when I am switching from lawn services to snow services and then also for spring and fall cleanups.:)

SpokaneSRC
02-21-2011, 07:34 PM
You have say..... 250 homes in a sub-division and you sign 75 of them @ $80/mo. = $6000 Gross. Your homes are all in one spot for this area and you can easily get all these completed on a regular 40hr work week with two guys. If your guys aren't doing that then get new ones as there are plenty of people out there that want the work and will bust their butt for you. Lets say with labor included ($12/hr a guy, 40 hrs) and your gas gives you expenses are $1100/wk that gives you a net profit for the month totaling $4900 x 12 = $58,800/yr. per 75 house sub-divisions you nail down.

OK. I must be misunderstanding something here. $6000 per month gross with $1100/wk expenses does not net you $4900 per month. It would net you $1600 per month. $6000 gross minus ($1100/wk x 4 weeks) $4400 = $1600. $1600 x 12 = $19200 annually.

AttractiveLandscape
02-21-2011, 08:17 PM
OK. I must be misunderstanding something here. $6000 per month gross with $1100/wk expenses does not net you $4900 per month. It would net you $1600 per month. $6000 gross minus ($1100/wk x 4 weeks) $4400 = $1600. $1600 x 12 = $19200 annually.

No, you didn't misunderstand a thing. I simply forgot a critical step.:eek: Thanks for the head smack.:o Your number is actually wrong too though (only because there is 52 weeks in a year):

$6000/mo. Profit
-$4766.67/mo. expenses (1100 x 52weeks /12months)

=$1233.33/Mo. Net Profit x 12mo. = $14799.96/yr

SpokaneSRC
02-21-2011, 09:16 PM
LOL. Tired tonight.

Steve
02-23-2011, 02:05 PM
I always send letters letting my customers know when I am switching from lawn services to snow services and then also for spring and fall cleanups.

And then you show up and do the work and bill the work? That sounds great! Do you ever have any problems with any customers handling it in this manner or no?

AttractiveLandscape
02-23-2011, 04:39 PM
And then you show up and do the work and bill the work? That sounds great! Do you ever have any problems with any customers handling it in this manner or no?

No problems as I explain everything in advance and am honest with them. As long as you do both 99% of customers are eager to jump on the savings and have no problem paying because there are no surprises.:cool:

Steve
02-25-2011, 12:27 PM
Do you recommend charging the customer a monthly fee spread out across the entire year? Is that what you mean by jumping on the savings?

AttractiveLandscape
02-25-2011, 07:44 PM
Do you recommend charging the customer a monthly fee spread out across the entire year? Is that what you mean by jumping on the savings?

I give them a weekly rate and multiply by 52 then divide by 12 (show this in the description), whatever that number comes out to I charge them monthly, quarterly, semi-annually, or annually. I leave it up to them. Either way I always get the first month at signing of the agreement.

Steve
02-27-2011, 07:15 PM
Oh that sounds great!

What about quarterly or annually? What's the best way to handle that? Do some customers pay ahead quarterly or annually? If they do, do they want a discount for paying in advance?

AttractiveLandscape
02-28-2011, 09:13 AM
Oh that sounds great!

What about quarterly or annually? What's the best way to handle that? Do some customers pay ahead quarterly or annually? If they do, do they want a discount for paying in advance?

Some do ask about "another" discount for paying it annually... I just briefly re-explain and show them they are already getting a discount by signing an annual aggreement so I can't double discount.

Steve
03-01-2011, 04:52 PM
Have you experimented with different inducements to get customers to sign up with annual lawn care contracts? Which have you found work best and which work worst?

AttractiveLandscape
03-01-2011, 06:22 PM
Have you experimented with different inducements to get customers to sign up with annual lawn care contracts? Which have you found work best and which work worst?

9 times out of 10 when you show them what they will save compared to their current services it is a done deal. There are a select few though that think they can get you lower... about half of those you don't want as customers anyway and the other half I simply say, "Well ok lets take a look... do you really "need" (some service) because you can save this much more..." I never cave from my initial price to them as I am already saving them money. If they are already paying $10 to $15 more for the same service you quoted them cheaper then it really isn't about price, it's about how low can I get this bozo, lol.

jrod14
03-02-2011, 06:48 PM
Great thread! It really opened my eyes and my mind! Thanks guys!

AttractiveLandscape
03-02-2011, 07:02 PM
Great thread! It really opened my eyes and my mind! Thanks guys!

Glad it helped you!:cool:

CFD192
03-02-2011, 08:48 PM
okay here is an updated packages with some changes let me know if you see anything that would put up a red flag for trouble or get me into something i don't want to do.

jymie
03-02-2011, 10:12 PM
It looked good up until I read Refund. I would set in stone the number of weeks you plan to service, 23, if it is less, apply it as a credit to next season. That way its no money out of pocket.

jrod14
03-02-2011, 11:01 PM
i hope you dont mind but i couldnt help but to make a package as well...i was thinking about this a while back but pretty much just set this aside till i read the thread earlier. ck it out and let me know what you guys think. im gonna attatch 2 seperate flyers. they are for large properties. about 97% of them are 1 acre exactly. im adding full maintenace. let me know if you think its a good deal. i currently have 3 properties in this neighborhood that i do full maintenance on. 1 for $100, another for $130 and the other for $80 since its just a standard service. the other 2 are full maintenace. they dont have many bushes or palms but they do have some.

jrod14
03-02-2011, 11:09 PM
okay here is an updated packages with some changes let me know if you see anything that would put up a red flag for trouble or get me into something i don't want to do.

just so you know....1 acre is 43,560 sqft...are you gonna cut up to 40,000 sqft every week on one property for $90 a week? if your doing it for $90 a month...well...your gonna screw yourself big time. i dont know what an acre goes for where you are but here it ranges on the cheap side $70 a cut to $110 an acre. i may have got confused on your post. i didnt even finish reading it. i just saw the 90 monthly and thought i would let you know fast!

CFD192
03-03-2011, 07:30 AM
thanks for the information on the refund...i will def. add that in there!

Jacob, yea our rates around here are $40 an acre. bascically close to a dollar a minute.

thanks everyone

AttractiveLandscape
03-03-2011, 11:38 AM
okay here is an updated packages with some changes let me know if you see anything that would put up a red flag for trouble or get me into something i don't want to do.

Those are good packages but why the refund in the disclaimer?

Steve
03-04-2011, 01:32 AM
Can you all repost your docx files in doc format? I can't seem them otherwise. Thanks so much.

CFD192
03-04-2011, 11:39 AM
here ya go

SpokaneSRC
03-04-2011, 11:48 AM
Steve-
Here is a free viewer from microsoft that let's you view .doc and .docx.
Don't know if that helps.
http://www.microsoft.com/downloads/en/details.aspx?FamilyID=3657ce88-7cfa-457a-9aec-f4f827f20cac&displaylang=en

Steve
03-05-2011, 05:39 PM
Oh thank you! That will be very helpful.