# Helping figure out the hours required.



## Chaudi (Apr 1, 2018)

Apologies if this is not the right category.

I am starting a home maintenance business i want to offer a monthly package for a year contract for the following services:

-grass cutting, clean up, spring and fall raking, once every week or two
- hedges trimming
- window cleaning 1-2 per year
- exterior house cleaning
- eavestrough cleaning 1-2 per year
- de -weeding and seeding 2-3 per year
- snow shoveling and ice removal

Small house 6 hour per month, i'm thinking 3-4 visits for average 1.5 hours each time 1 worker. In the spring there would be more hours and sometimes less in the winter etc.

Medium house 8 hours

Large, 2 story, 10 hours per month 

extra large etc.

They would be on contract so the need to pay for the whole year. Is my estimate reasonable. I'd like to make it simple. Any advice appreciated. I think i need to charge double for what ever i pay the worker. Will that be enough?

snow removal will be in S. Ontario. Medium amount of snow someone little.


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## Anderson (Sep 7, 2009)

Sounds like a fast way to go broke.


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## Chaudi (Apr 1, 2018)

I want to give them one price per month. I'm thinking there will many weeks when it doesn't rain or snow, like in the fall or spring. I can only give them so many hours per month.
So you saying i am underestimating? I want to go for a deluxe service with people with money, so better to over estimate. I am thinking $50 a hour x 6 hrs =$300 a month for a small house, or $3600 per year. Hire new immigrants for $15-$20.so $1440 labour, $2160 net -minus $500 for expenses=1660 profit. But there might be less hours minus weeks there is no work to be done on a house?

I guess that is not enough. better go for minimum $500 a month for a small house? or maybe do the $300 a month all year but no snow removal?

I have a bad habit of underestimating that is why i ask you guys.

Houses around here go for 1 million+ so maybe shoot big at $800-$1000 a month? Might be easier to go for the fat cats.


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## Leo G (May 12, 2005)

$50/hr is to low for the states. And you're up there.


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## KAP (Feb 19, 2011)

Service contracts are more successful if it covers the basics of what's needed for a specified period of time... if it goes above that, additional charges apply...

There's only so much people are willing to part with to offset the potential unknown...


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## sidemouse (Apr 19, 2018)

The only way I have figured out around coming up with good long term or full service contracts is to start out with a 'per service' agreement where it's basically pay as you go and you never enter into work unless you have the customer's informed consent, now... I don't mean this to be a depressant but it took me quite a bit of time bidding one-time jobs before I could come up with a detailed annual plan such as what you're talking about. Today I'm to where I bid jobs based on a simple picture and even take on jobs based on a customer's phone conversation (as in without even looking at the work) but all that is very risky as well, most of the time you want to go see the work and you want to have the ability to wrap your mind around the job... Generally speaking if my mind doesn't want to wrap itself completely around the project at hand that likely means it's over my head, just one of many warning signs I have learned to observe.

So in conclusion these long term / full service contracts generally won't come to you until you're rather well versed in bidding jobs. Hope that helps, sorry if it wasn't the answer you were looking for.


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## sidemouse (Apr 19, 2018)

So if I hire you, pay you an entire year in advance...
Don't you think I'd be as well off sending my money to Nigeria?
What if you never show up, or you show up a time or two and then disappear?

You have to understand something...
I have customers whose middle school children I watched go to High School, graduate...
They then went off to college, graduated from there.
Got married.
And now those same customers of mine are grandparents.

I have customers who were my customers since before the stock market crash of October of 2008, which was the start of the Great Recession. Personally speaking I doubt even those or the ones above would be willing to pay me a year's fees in advance (even though "I'm good for it" too!).

The road to hell is paved with good intentions.

So then...

Assuming you're new, I'd start with a per service agreement.
You can certainly let your customers know that you're most interested in long-term recurring services, but first I'd let them pick which services and then between the two of you reach a compromise on how often... Only then would I go ahead and see if they are comfortable with you billing them after each service is completed.

But don't listen to me, nobody ever does.


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## A&E Exteriors (Aug 14, 2009)

sidemouse said:


> So if I hire you, pay you an entire year in advance...
> Don't you think I'd be as well off sending my money to Nigeria?
> What if you never show up, or you show up a time or two and then disappear?
> 
> ...


it is common for things the OP does to be billed yearly in advance. It gives the customers a discount and is the op operating capital for the season and bulk supplies. 

That said, it is usually not accepted until you have built a rapport with the client over a few years.

Good friend of mine gave a 10% discount for some of his repeat window cleaning customers


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