Flat billing for the entire year?

[TerraCare]

Next year I am thinking about advertising a flat rate to my customers, mapping out what I will do for a certain price. I feel that this is a better way for me to charge my customers because it garuntees the work and they know exactly how much they will have to set aside to pay for the service. How many of you have done this? How effective is it to do it this way? What is the customer response to this type of setup? Thanks for reading!

todd

[Kidsweet]

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That is how I do it. But I would do it awhile so you will know how long it is going to take so you won't under price yourself.

[kutnkru]

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I give them a "menu" of services we offer and how much each service costs at the beginning of the season.

Since we are only have approx. 9 months each year I will take the number of cuts and divide that by 9. I have found that although you are correct in that they will know what its going to cost them monthly, which helps us too - many prefer it if you arent lumping mulch, and shearing costs into their monthly plans.

I have had good success with grounds apps, lime, aeration, and mowing sold as packages however. Just not the "add-ons".

What you my find is that by having a lower monthly premium for services doing it this way, they actually up-sell the add-ons that normally wouldnt have been purchased.

[cole1980]

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I just landed a clean-up job. Starting Friday, every week until March 1st. Total was $480 for everything. She wants to pay once a week, 10 weeks, $48 a week. In March 1st, I will start a Fert, Mow/Trim, good till November 30th. Give overall total for everything and bill monthly or weekly how ever she wants. For her billing no paperwork involved.

[PBS]

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kutnkru is absolutely right. By stretching the payments out, they seem cheaper to the customer and they tend to add on more especially if you take any added charges and spread it out too. It's the illusion of getting more for less. $5.00 per month seems cheaper and a better deal than $60.00 now. Great idea! I have several clients that I bill for in this fashion, you'd be surprised at how well it works and how profitable it can be. You might want to consider billing over a 12 month period, same amount every month without question. It's much easier for the customer to remember rather than 9 months on/3 months off. And the customer tends to stay with the current service provider because things are established and easy with you as opposed to starting over with someone else. Good Luck.

[BergLawnCare]

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I have just sent out my contracts for next year and have given the customer the option of an annual price which is broken down into 12 equal monthly payments or be billed per occurence on a monthly basis. i listed what the annual charge would be and even broke it down to what the monthly payments would be. i addressed that this price was for mowing, trimming and blowing off concrete surfaces only but that i could include other services if they would like but that they would have to notify me and i would rewrite the contract. those all went in the mail on tuesday and already today (Wednsday) i have started receiving phone calls for add ons to the annual contract price. this is the first year that i have tried the annual contract prices, so i'll keep you informed on how this all plays out for me as the contracts are to be returned to me by Jan. 1st.