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PRO

Fixed price contracts

Hi all,

I've recently begun the process of moving some of my regular residential garden maintenance customers from hourly billing to fixed price. I already use this system with commercial customers but they have always provided me with a contract and the ones I have from them are very detailed and not really appropriate for private gardens I feel. Does anyone have a template I could use? Also I'm struggling a little with the idea of fixed price for many of my private gardens as the work to be done in these gardens is as long as a peace of string so how do I get away from the time limit means of defining the end of the visit rather than all the tasks are completed and the garden is in a good state? For example a customer who I do 2 hours for normally as this is what fits their budget but there are always other things that could be done. How do you write up a fixed price for them without having to massively increase the monthly cost? As it's based on the garden being in a good state throughout? Maybe these types of jobs where I am just helping to keep on top of the garden won't ever suit fixed cost? 

Advice much appreciated.

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Replies

  • I think you are right about some domestic gardens just not suiting a fixed price as there is often always more that can be done.  I have a mix of fixed price and hourly but the fixed price earns me a lot more so I just don't take on any more hourly

  • That's exactly my argument against fixed prices for domestic customers, though lets not go through all those arguments again lol!!  There's always something more that can be done in nearly all domestic gardens so you've got to know when to stop and some sort of time limit seems the way to me and works well.

  • PRO

    We have fixed price contracts for many of our domestic clients and it works well. 

    We sell it as a means that the sites we maintain will always look good and if our price arrives over their budget then we can reduce the specification to suit.

    This means that we can still cover our overheads whilst the customer retains control of their own budget.

  • I don't have any contracts with my domestic customers although all of my work is fixed price. I have a verbal agreement at the beginning which is followed up by email by detailing all the tasks per visit and the price per visit.

    Both the two guys before me have said 'there's always something more that can be done'. Of course there is; you can spend a week on a garden if you wished to. A mechanic could always do more on my van but he won't if he's not paid for it. You sell a service not time (unless you want to limit your earnings) and the other thing to consider is that despite professional pride in our work, it is the customers garden, not ours, and they request our services to do part of the gardening requirement. 

    In direct answer to your piece of string problem, I would detail on paper everything that needs to be done in a calendar year. So that may include trimming leylandii in Mar and Sep. Then add up the total value of all the visits (such as £30.00 per visit x 20 visits = £600.00 and divide by 12 to give a monthly fixed price - £50.00. You then put the non regular tasks in the calendar, give your customer a copy of that and your visit schedule. This avoids the 'when are you cutting the forsythia?' and clearly defines the task to both parties.  

  • PRO
    All our clients are on fixed price and I find it works best for those who are happy to let us get on with it. Clients who want to micromanage are best on an hourly rate which is a service we don't offer. We usually are slightly vague and explain we carry out the works needed on that day having said that for clients wanting to spend 5 figures then I provide a work plan at outset. Best thing I ever did dumping the hourly rate!
    • PRO
      Sounds good. Yes the problems I for see are with customers who are always there wanting to micro manage. I'm just too soft to put my foot down and ditch difficult customers!
      • PRO

        You should add a premium to your charge for difficult clients

        • PRO

          This forum is definitely helping me toughen up and not be so much of a pushover I've given away too much for too little for a long time and this forum has given me such a confidence boost it's really given me a renewed interest in my job. I'm getting some great jobs at a good price now and feel much happier!

          • PRO

            Good to hear Helen. 

          • Yeah, they think we women are soft touches. I am currently contemplating ditching two more customers who do my head in and make me feel upset and resentful. Stress I don't need.

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