When it comes to outdoor maintenance services such as grounds care, winter gritting, or reactive works, one of the biggest decisions a business faces is choosing the right pricing model. Two of the most common approaches are fixed price contracts and cost-per-visit models. Each has its strengths and challenges, and the right choice will depend on your organisation’s needs, priorities, and appetite for risk.
Understanding the Fixed Price Model
A fixed pricing model involves paying a set fee for services over an agreed period, such as a winter season or a full year of grounds maintenance. The greatest advantage is cost certainty. With predictable fees, budgeting becomes much simpler, which is particularly helpful for facilities managers and public sector organisations that need to plan expenditure carefully. These contracts often include all required visits within the scope of work, meaning you are covered regardless of how many times services are needed. This also reduces administration, since there are no frequent invoices to process or disputes over charges.
The trade-off is that you may still pay the same in quieter periods when services are not required as often, such as during a mild winter. Fixed contracts also offer less flexibility once they are in place, making it harder to adjust terms mid-way through a season or contract.
Understanding the Cost-Per-Visit Pricing Model
With a cost-per-visit arrangement, you only pay when services are delivered. This could mean a charge for each winter gritting visit or for every grounds maintenance call-out. The main advantage is flexibility, as you pay only for what you use. This can be particularly valuable for businesses that face unpredictable or infrequent requirements. For larger estates, it can also provide scalability, since different sites may have very different levels of demand.
The challenge with this approach is that costs are less predictable. A period of severe weather, for example, can lead to a spike in visits and unexpected expense. The administration burden may also be higher, as each visit generates an invoice that needs to be tracked and approved.
Which Model Suits Which Business?
Different types of organisations will naturally lean towards different pricing models. A single-site facility manager is often more comfortable with a fixed-price contract, as it avoids hidden costs and gives certainty in planning. A small business owner, on the other hand, may prefer the cost-per-visit approach because it provides the flexibility to pay only when services are required, which can help with cash flow.
For multi-site estate managers, the picture is more complex. Many find that a blended approach works best, using fixed pricing for essential, portfolio-wide services, while relying on cost-per-visit options for more site-specific or unpredictable needs. In the public sector or in procurement-led organisations, fixed-price contracts are often favoured, as they align more closely with compliance requirements and simplify the process of forecasting and reporting expenditure.
Considering a Hybrid Approach
Increasingly, organisations are choosing a hybrid model. For example, they may secure a fixed seasonal contract to cover essential winter gritting, ensuring budget certainty, while also allowing for additional cost-per-visit callouts when unusual circumstances arise. This approach offers the reassurance of predictability alongside the flexibility to adapt when needed.
Key Considerations
There is no universal answer when it comes to choosing between fixed price and cost-per-visit. The decision depends on how important it is for your organisation to have cost certainty, how variable your service requirements are, and how much administration you are prepared to handle. By weighing these factors carefully, you can choose a pricing model that best matches your operational needs and financial priorities.
OUTCO will always work with each client before commencement of any contract to assess their unique needs and conduct a full assessment of all sites involved. This allows for the best pricing model to be matched to each individual estate. For more information visit www.outco.co.uk
