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Signed my 1st seasonal today...is it ok?

Discussion in 'Introduce Yourself to the Community' started by MrLank, Sep 23, 2010.

  1. MrLank

    MrLank Junior Member
    Messages: 12

    So I wasn't going to do any accounts this year and just contract myself out but, some of my lawn accounts started asking. So I took like 8 contracts that I could find on the internet and made myself a complete one. Well today I had a guy signup for seasonal and just wanted some feedback if prices sound right. He has a 85ft drive-way/single car.

    Charged him 40 per push average of 27 pushes in a season. $1080
    Now as far as the salting he thought it was a bit high at $2.50/lb
  2. RM&M

    RM&M Member
    from ERIE
    Messages: 39

    well congrats on signing a season contract. i have a lady that has a house for sale and dont live there any more and she wants me to give her a season price. i havnt come to a good figure yet. i could plow it 20 times or i could plow it 40 times. thats just such a big window that i havent decided yet what to do i mean its a couple hundred dollar window so i dont know if i should just meet right in the middle and go for it or go high and cover my %$# incase we get another record year.......lol ....hopefully.
    but getting into a season contract just scares the heck out of me anyone else feel that way?
  3. the new boss 92

    the new boss 92 2000 Club Member
    Messages: 2,989

    rmm you have to write in the contract that your sesonal price only covers xxx amount of push's. anything after that is xxxx amount of dallors. you sign here i sign here, payments must be recieved on the 1st of every month, or you will be chardged xxx aount of dallors for a late fee. plan and simple and both parties are happy.

    now dont write it like that but short shytty example of the main parts that should be in there!
  4. MrLank

    MrLank Junior Member
    Messages: 12

    rmm what I did and I don't know if anyone else has but personally with the way things are and alot of poeple aren't just looking at forking over a ton of money, I offered that if I don't do 27 pushes then I'll give back $10 for everyone that is under 27. So if I only do 25 clearings then I'll owe them $20. Either way I'm getting paid and the customer I signed today really liked that idea. So I'd still make $ 60 from the two clearings that I didn't have to do. If we would get more then 27 then I'd only charge him $30 to clear because he is making $180 a month payments to me already. Which doesn't include the salt that I'm going to have to lay.

    Can anyone help me out with that? $2.50/lb to much?
  5. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,382

    Congrats on the seasonal. As far as $2.50 per lb of salt.....yeah, ah, way high. If you spread a 50lb bag thats like 125.00. More like .25/lb. A 50lb bag will come out of a spreader in about 10 seconds,lol Why not charge a flat rate for delivery (applying the salt) and X amount for the actual salt. And like some one said, put a cap on with a seasonal price.

    MIPLOWER Junior Member
    Messages: 22

    Congrats on the first contract, keep us posted on how your doing. the first one is always the hardest.
  7. 2COR517

    2COR517 PlowSite Fanatic
    Messages: 7,115

    Do you issue a rebate if it snows fewer times?
  8. By"US"Snow

    By"US"Snow Junior Member
    Messages: 18

    The point of the Seasonal Contract is that the customer knows there set cost each month throughout the winter no matter WHAT happens. I never state a maximum number of pushes. We take a 10-year storm average and determine a fair number of storms to use for the seasonal contract. You have to be willing to take the chance with storms if a customer is willing to take a chance with you for the whole season. If your not willing to do that and your going to give money back if it doesnt snow as much or ask for more money if it snows more, your better off signing a winter long contract with per push pricing.
  9. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,382

    Thats one way to look at it but after a few years of getting hammered, a cap just made sense. A 10 year average...thats seems like a long time isnt it? I've had a few people ask me if we gave money back but I explain its like buying an insurance policy, plus its easier for areas that receive a good amount of snow. I just dont know how you can still plow if you give them a price that includes 15 plows and you have a bad winter and end up plowing say 25 times. Look at the areas like DC or Baltimore last year.
    Last edited: Sep 24, 2010
  10. By"US"Snow

    By"US"Snow Junior Member
    Messages: 18

    The 10 year Storm average is a long time but it always brings back nearly the same average. We do not let one year skew our numbers. If your customer was smart they would always just go per storm, because if it snows less than your cap then they save money. While paying per push, if there is more storms then your cap they would be paying that additional amount already anyways. Seems like your only trying to get the high end of the deal. Charge more if it snows more, but no discount if it snows less.
  11. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,382

    No body is trying to get the "high end of the deal" at least not me. But rest assured I'm not going to be plowing for free, been there, done that. There are advantages to both parties with a seasonal, they have worry free maintenance, you collect your money in full so there's no chasing them around.
  12. MrLank

    MrLank Junior Member
    Messages: 12

    Thank you everyone. Need help now though. Going to post info in bidding and estimating forum.