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Switched to seasonal contracts

Discussion in 'Bidding & Estimating' started by theplowmeister, Nov 20, 2012.

  1. theplowmeister

    theplowmeister 2000 Club Member
    from MA
    Messages: 2,552

    This year I switched ALL my customers from per storm to seasonal contract (was 25% seasonal). except for 1 neighborhood I have a 90% retention. In that one neighborhood I lost 60% of my people.
    I was surprised, this neighborhood has the highest concentration of Escapades, I gues Cady owners are cheep.
     
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Welcome to the other side.
     
  3. BC Handyman

    BC Handyman PlowSite.com Addict
    Messages: 1,863

    So how did you do that? Especialy how did you convert so many, what did you say to them? I've been trying for 2 years now to convert some of my existing customers & NONE are interested, I only got 2 seasonals, 1 new customer & cleaning a old customers car off(I know thats weird, but well worth the $)
     
  4. RepoMan207

    RepoMan207 PlowSite Fanatic
    from Maine
    Messages: 5,035



    I found the same thing, I always chalked it up to the rich like to gamble. All it takes is one good season, and they learn their lesson. payup :D

    It's good to keep a mix...I myself prefer 20% or less on per storm anyway.




    BC, I started out giving the option on their bids / contracts. Throw a note on it stating what they paid the last 2-3 seasons, and place a discounted seasonal rate, then slightly jack their per storm pricing more and more each season till they switch. I'm a high priced wh0re to begin with, so converting was easy for my customer's.


    /

    [​IMG]
     
  5. WIPensFan

    WIPensFan PlowSite Veteran
    Messages: 3,507

    Repo, You really only charge $10.00 more per increment?? At 2-3" you're at $75.00. Then if you get 7" you're only charging $10.00 more? That makes no sense. Or is this just a hypothetical price structure?
     
  6. RepoMan207

    RepoMan207 PlowSite Fanatic
    from Maine
    Messages: 5,035

    :rolleyes: Really? Unfuckinbelievable; there is always someone on here to jump to a price argument. For the record, yeah, it's an altered price page (name changed, prices remain), not that it should matter. I tell ya what, why don't you tell me what I should be charging? Oh...that's right, you can't, because you have no friggin clue what you're talking about. Let me fill you in, it's a 60' x 8.5' driveway, straight in, nothing else, back out, and you're on your way with one pass...so you tell me price ninja; what would you charge? Oh, wait, that's right.....I don't care. To an outsider, I could see your point...especially at that price range, but do you see my point? There is more at play here then you could ever know, and given the fact that I didn't ask your opinion, and your completely off topic to begin with......ya know?.?. I feel bad jumping down your throat on this, but wtf......
     
  7. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Will you do it for 875.00?Thumbs Up
     
  8. shovelracer

    shovelracer Senior Member
    Messages: 525

    I interpret the cady comment to imply that this neighborhood might be the upper end of the local class spectrum. These areas generally have 2 things going for them. 1) The majority of these types of clients place little to no value in the service you provide. They rarely have ever done it themselves before and even if the hired help has a problem they will just find another. 2) Working with #1, these areas generally receive a higher than average solicitation rate, and more so tend to draw in less than professional services with lower than average pricing. Thought process being that if you want to get rich quick you go to were the money is. This is why around here an average 3000sqft lawn can go for $50, but the McMansion 1.5acre with tiers, gates, pools, and 1500ft of trimming will never get more than $60.
     
  9. BC Handyman

    BC Handyman PlowSite.com Addict
    Messages: 1,863

    Good idea, Thank you. I've always asked them, & even mentioned that they could save $, Its snow insurance, easy to budget ect. But I have not put a note infront of them(so they can stare at it & hopefully absorb the info)

    good point about the "rich area's"... makes sence, cause the rich areas are always flooded with service providers, & most customers in those area's are quit cheap.

    Thanks guys, I think I learned something this morn. Hopfully I can get a few more seasonals for next year.
     
  10. ducaticorse

    ducaticorse PlowSite.com Addict
    from we
    Messages: 1,426

    That was awesome...
     
  11. WIPensFan

    WIPensFan PlowSite Veteran
    Messages: 3,507

    :laughing: So that price structure was just for one certain account? I guess the way I see it, you're killing them with the base price. You make so much $$$ on the 2"-6" price, you don't need to make much more for a higher total snowfall. And this particular account takes you all of 5 min to do?

    Then when you offer a seasonal price at a discounted rate ( $270 less than last year and $110 less than in the previous year to that ) you're not really taking as big of a hit as it seems because your per storm prices are already so high? Is this correct?
     
  12. ducaticorse

    ducaticorse PlowSite.com Addict
    from we
    Messages: 1,426

    I don't think this is the year to switch to seasonal. And I hope I'm right about that.