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Residentials and seasonal pricing?

Discussion in 'Business Fundamentals' started by NicholasMWhite, Dec 19, 2010.

  1. NicholasMWhite

    NicholasMWhite Senior Member
    Messages: 175

    How many of your residential accounts have seasonal pricing (one price for the year or per month no matter what). I give the customer the option of choosing seasonal or per push and almost all have chosen per push. It seems in Canada there are alot more residential accounts on a seasonal pricing.

    I like the idea of a tractor with a PXPL for residential accounts. But if I can't get customers to accept seasonal pricing it is just to hard to predict the potential revenue and I don't see how it could be done. I don't want to go the HOA route and get a tractor for that because then you still have to deal with salting and sidewalks which I would like to avoid if possible. I'm doing only residential accounts now with a plow and very few of them have me doing sidewalks and none of them have salting.

    So how many of you in the States have residential customers with seasonal pricing.
     
  2. MikeLawnSnowLLC

    MikeLawnSnowLLC Senior Member
    Messages: 350

    We sit at about 80% seasonals 20% per push for our residentials. Commercials are almost nearly all per push.
     
  3. cpmi

    cpmi Senior Member
    from CT
    Messages: 162

    It's 50-50 on both our residentials and commercial accounts.
     
  4. MattR

    MattR Senior Member
    Messages: 218

    Last year I had one seasonal which was a hobby farm up for sale and the owner moved out of state. Still needed to have heat in the house since it was on the market and also not winterized, so the drive needed to be clear for the LP guy.

    This year is all per push. Some people must not think it will snow much...lol.
     
  5. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Seasonal ,this way you know how much money comes in for the season.
     
  6. andcon83

    andcon83 Senior Member
    Messages: 388

    I have quite a few that do not live at thier camps but want oi kept open. I just charge by the push for all.
     
  7. GL&M

    GL&M Senior Member
    from PA
    Messages: 223

    Seasonal plowing doesn't sell around these parts. Everybody thinks they're getting screwed if you don't get much snow and charge them money and do no work. They don't realize they are paying for a guarantee on service or realize if they get a lot of snow it may be cheaper than per push. I can sell seasonal on the mowing much better because they know the grass will grow for most of the summer.
     
  8. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Around here its harder to sell seasonal mowing because they think they are getting ripped off!
     
  9. wildwilly

    wildwilly Member
    Messages: 85

    I always tell people that if you want to be per push you go to the end of the line for service. You want to pay for the year(4 months) you are golden, but only after the commercial stuff gets done. Most of my customers are seniors so they aren't going to go out right after a storm. They are serviced within 8 hours of the end of the last flake
     
  10. jklawn&Plow

    jklawn&Plow Senior Member
    Messages: 469

    I was thinking of offering next year discounts for uncut weeks-give back 40% - by my calcs it amounts to labor and mower gas- but not all the other business expenses, parts, repairs, oil, insur, 401k, truck gas, mower & truck depreciation etc...
     
  11. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Last 3 years ,havn't missed a week of cutting. Never give back money.
     
  12. GL&M

    GL&M Senior Member
    from PA
    Messages: 223

    If you do that you may as well do it per cut and be done with it. Seasonals are a crap shoot. Some time you win and sometimes the homeowner wins. If you calculate it right you win more ofthn than not. If it's a contract then don't give any money back.

    I give the customers an option of a 10% discount at the signing of the contract if they gaurantee me 7months of income based on the average number of cuts for the season. If it works out that I cut less than the average due to weather condtions I make out a bit better than doing it per cut. If I need to cut more than average the customers gets a bit of a break. On the average I usually get the better part of the deal.
     
  13. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    On the lawn cutting you lose money in the spring because it takes longer ,you make the money when the grass slows down so you don't want to give the easy money back.
     
  14. jklawn&Plow

    jklawn&Plow Senior Member
    Messages: 469

    What's a Avg hourly rate if you figure gross time with no expenses. $40?
     
  15. GL&M

    GL&M Senior Member
    from PA
    Messages: 223

    I bid residential at $45.00. Commercial is more because they are more demanding.
     
  16. wildwilly

    wildwilly Member
    Messages: 85

    1 minute = $1.00...otherwise get the neighbourhood kid. My furnace went on me last month... part cost $65.00 total bill $460.00 total time spent in my house.... 35 minutes
     
  17. KMBertog

    KMBertog PlowSite.com Addict
    Messages: 1,129

    all our residential snow customers are at a per-push price.
     
  18. jklawn&Plow

    jklawn&Plow Senior Member
    Messages: 469

    $$/hr are from $31 to $58. weighted Avg is $45
    Can do real well when you get the neighbors too. No extra unload, loadup time. I guess I'm in the ballpark. But I really push the envelope time wise. I think my prices are low.
     
  19. STIHL GUY

    STIHL GUY Senior Member
    from CT
    Messages: 663

    all my residentials are per push
     
  20. South Seneca

    South Seneca Senior Member
    Messages: 474

    All my Residentials are also per push. Most are older folks that are on limited incomes. It's easier for them to come up with push price than a seasonal chunk.

    I charge $60 an hour for bigger jobs. Some days I don't think that's enough.