How to beat the summer drought in cool season area

[lawrence stone]

Try to put at least one half of your revenue stream on monthly installments. I get 8 equal installments from April thru November.

I provide:

1.Mowing every 7 to 14 days as rainfall dictates.

2.Spring and fall dethatching/tine rake and core aeration.

3.Apply fertilizer insecticide, and herbicide to lawn and landscape (trees and shrubs) as needed.

4.Shear/prune/trim landscape plants as needed.

So to come to a monthly price I base the mowing on 25 visits and add up all the other services for the entire year and divide by eight.

Now when you price your services you need to be able to perform them efficiently and price them to a point of about 30% gross profit markup over actual costs.

Remember in the maintenance business your customer needs to have the ability to pay you in the long run. If your pricing is not in line they will shop.

The key to holding on to long term maintenance customers is to provide somewhat acceptable levels of service while still being affordable to the average Joe six-pack.


"The Frugal Agronomist"

Edited by - lawrence stone on Jul 11 2002 09:51:16 AM

[Matthew W. Morgan]

reply

<font color=red>While it is a nice plan, I find that most residentials only like to pay for what they are getting. I guess in short, they are afraid they might pay for a mowing that they don't get.

Also, to make it seem more "affordable" and to stretch the payments for you, offer a 10 month pay plan. The monthly payments are cheaper for the consumer. You need to be careful in the spring when your expenses are high though. If you employ such a plan, you MUST be a good money manager.

Matthew</font id=red>

[thelawnguy]

reply

Hedge Trimming is the answer.

My phone has been ringing off the hook this past week with folks looking to have their evergreen hedges trimmed. The 15 year old who mows their lawns with the Murray 22 isn't allowed to use a hedge trimmer or carry a ladder across the street so, since I am the only guy with an ad in the service section of this has-been former industrial city I am the one to reap the rewards. Most of these jobs admittedly will be one shot deals but while the lawns are dormant I dont mind cashing in on these $100 per hour jobs.

Bill

[Green Giant]

reply

Solid plan there LS.
(No slam from me,it's a smart way to do business)
Thats exactly how I do mine. Except it's based anywhere from 32-40 services billed over a 12 month period.
I'm usually busier during Nov.- Apr. and I make a lot more money.
Thats where all the extras come in. Mulch,plants,annuals,re-doing beds,etc.


Dennis E.
Grasshopper Lawn
Mulberry,Fl.
(Green Giant is my truck!)