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Annual Lawn Care Contracts


General Business Discussions

A place to talk about general business discussions.
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  #1  
Old 01-04-2011, 09:20 PM
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Talking Annual Lawn Care Contracts

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?
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  #2  
Old 01-04-2011, 10:26 PM
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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
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Old 01-05-2011, 12:14 PM
Local Edge Lawn Care Local Edge Lawn Care is offline
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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.



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Old 01-05-2011, 08:28 PM
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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?
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Old 01-06-2011, 04:21 PM
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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.
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Old 01-07-2011, 02:58 PM
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how to charge if its abig yard and your prices are for smaller yards aren't you loosing a lot of Money?
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Old 01-09-2011, 02:07 PM
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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:

Quote:
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:

Quote:
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?
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Old 03-12-2013, 11:42 AM
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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
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Old 03-12-2013, 12:31 PM
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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....
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Old 03-12-2013, 11:27 PM
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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
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