View Full Version : SOS HELP with 12 month contract terms Need advice
Perfect touch landscapes
12-18-2009, 11:29 PM
I have been using 12 month contracts on residential and commercial, on commercial it works like acharm but 25-40% of residential customers abuse contract and terms. They are extremely happy when I get contract, then they call and call asking when I will do mulch cleanup, mow, weed, fert, I do explain that I can't provide all services at once because payment is set, yet accounts are in bad shape. I started collecting one month upon acceptance and every month after that, no matter how I explain, when tornados hit, floods, storms, molles,fungus,bagworms, sabotage ,watering flowers every morning and all kinds of other nonesence that is not forseen I don't cover that as part of contract. I need some help with verbage, creativity, and being carefully of not getting hurt, by someone canselling contract in October ( when I start collecting mostly profit,yet they try to get rid of you because they see you as liability and forgot how much work I have done in the beggining.
Posted via Mobile Device
unkownfl
12-18-2009, 11:36 PM
First you need to have a way for them to get out of the contract like a early termination penalty. If you don't offer one it is considered one sided in my opinion and I'm almost certain a judge will throw it out if there is no way out of it.
Perfect touch landscapes
12-18-2009, 11:53 PM
Ok I don't have a problem with clause but I hear from many people you can't charge penalty, and what I think of penalty is catching up everything you did over what you have received. If customer quits his job how am I responsible for this. I want to be able to please clients , but at the same time not lead customer on that I will be in their yard with butterfly net catching leafs for them. 12 month works great in neighbourhood with allot of oaks, bcause you can clean them all inter long, but someone in new subdivision different story. Then you get someone who never had pro services and you got som explaining to do. See I am tired of explaining something over and over when hey use the amunity of being ignorent or being slick with me.
Posted via Mobile Device
unkownfl
12-19-2009, 12:07 AM
I know I have a clause for cancellation. It has to work both ways though. If you cancel you have to do whatever to make it right and the same for the customer. The contact has to protect you and your client. I would put that issues in regards to this contract are to be settled in arbitration.
ALLPro Landscaping
12-19-2009, 12:53 AM
I have a clause in my contracts, one for canceling, and a $100.00 service charge for changing a commercial contract, my res cancellation is $200.00 cancellation fee. You have to have some way for them to get out, just make sure you get something out of it, some guys do a 30 day notice, mine is 7 calender days plus 200
Perfect touch landscapes
12-19-2009, 01:04 AM
What clauses or spec"s you got to have to win in court, issue mac lien, or send them to collections.
Posted via Mobile Device
CkLandscapingOrlando
12-19-2009, 05:55 AM
I charge one month if they cancel with more than 3 months remaining on the contract. But you can cancel for any reason with 30 days written notice.
Perfect touch landscapes
12-19-2009, 12:09 PM
I charge one month if they cancel with more than 3 months remaining on the contract. But you can cancel for any reason with 30 days written notice.
You don't have a problem with their bossy fit? If payment is small and they don't pay ,smart ones know I don't want to waste time with collections or lien. What do you do incase no complience? I just had dealership contract, brought everything to be like it should be. When I got account I thought I dealt with owner. He wanted me to do his personal account also. When I invoiced first payment with two different monthly fees( home and buisiness) he calledme and told me to include personal with home in one payment and not to disclose on invoce that home is included. I felt something was fishy. He was pain in the ass customer. His plaza had 5 other buisinesses in it. I found out that all 5 buisinesses were paying him 400.00 a month for landscape maintenance. One day one of owner came up to me and asked me to bid his home after we talked a little he realized that I was servising also home account of the owner and I only billed him 550.00 a month. He told me that this plaza was owned by 5 owners and they all pay association money every month. Then he figured out that client that I signed contract with was including his home and 5 owners were all paying for it. He got pissed off. anyways he contacted client I signed contract with that I thought was the only owner and tryed to ask him how come he is making all coowners pay for his personal ****.I got a call got botched at that I as pissing off tenants.customer I had agreement with told all co-owners that I did his home for free(250.00) a month. I was in the middle one guy was pissed off that 1 owner got home maintained on the house other was pissed off they he was caught stealing. Client got pissed off that I talked and fired me. Well I didn't realize this was going on. I got contract it is not as detailed as I want it to be. I don't have a clause for collecting one month or
kootoomootoo
12-19-2009, 01:23 PM
you 12mth guys sure like to make it hard for yourselves......and easy for the rest of us
CkLandscapingOrlando
12-19-2009, 07:53 PM
How do you figure that? Some of us 12 month guy's actualy work 12 months. I refuse to discuse any price for a property with anyone else. Mainly because you get asked what your being payed and you say 200, then there friend is doing it next week for 175.
Also, you wont pick up any comercial work here without a 12 month contract. So how do we make it easy for you?
Perfect touch landscapes
12-19-2009, 10:51 PM
How do you figure that? Some of us 12 month guy's actualy work 12 months. I refuse to discuse any price for a property with anyone else. Mainly because you get asked what your being payed and you say 200, then there friend is doing it next week for 175.
Also, you wont pick up any comercial work here without a 12 month contract. So how do we make it easy for you?
I normally never discused prices with anyone , but this time situation was different this was cheapest bid I have ever gave and I guess I tryed to brag how cheap I can do an account, it backfired and gave me lesson, never get to friendly or to comfortable there is always collateral damage. Whole reason I picked up this account because I though it was in such high profile location I was gonna pick up tons of buisiness. I got my own black book so called, where I write down my own lessons I learn and trust me I added at least 10 more tips of what not to do or do different. Some guys don't undersdand when we do 12 month accounts it is not of desperation , to them their numbers in few accounts, but when you add 150-200 accounts on monthly payment they don't realize we do that for numbers and a solid flow of work that I call filler. 200 accounts at minimum 200 a month do the math. I try to avoid them but once again you can't always have steak so I eat mashpotatoes too, because after only 8 oz of meat you will be still hungry.My main goal to use whatever I can to get every customer I want not every that called , but every I need. If I go thrugh a subdivision I d rather use every tool in arsinal to get 20 customers in row then be stuck up and spend 2 hours a day travelling around town.
Posted via Mobile Device
CkLandscapingOrlando
12-20-2009, 07:29 AM
As long as your making money, do what you got to. If your making 20 bucks off a place and then drive 10 min to your next 20 you made 10 bucks. If you can stack 15 houses that your only making 15 but no travel, you make a living.
I still dont see how a contract makes it easy for another comp though.
Landscape Poet
12-27-2009, 08:52 AM
I enjoy 12 months right now as I am stillsmall enough that
I am able to spend quality time on their property, makes them extreamlhappy and gives me something to do in the off weeks. Has actually allowed me to take their properrties to anotrher level, which will continue to help word of mouth. Sorry about any mispelled word in this post, posting from blackberry while at universal
Posted via Mobile Device
Perfect touch landscapes
12-27-2009, 07:30 PM
I have learned 12 month contracts work well in subdivisions where trees are mature, customers that have mulch installed instead of rock and neighbours are hard to penetrate. I have had people stop by and say my customer must be rich to have me at their property almost 52 weeks a year. Times like that are great for punchline and marketing, I let them know that it is not that expensive. Biggest challenge is educating homeowners and telling them how many services they are missing out on. You can't sell full meal deal to everybody, but the ones that like prestige and perfection this is it. I have found valuable info how to modify my 12 month contract to avoid getting hurt. asking downpayment when contract is signed is a big help. If client is behind I would not hesitate to stop services. When you are always 30 days behind it is a different story. I have learned sertain types of people cause more trouble and sertain are happy no matter what . I set down and separated easy clients from different. I will tell you working for Bisiness owners is a different ballgame compared to salaried clients. In my opinion being more carefull with so called untamed clientelle ,showed true collors of everyone in contract. I just hate dealing with keep up with the jones type, kind that lives larger then can afford, everything to them is a hagle and they trully think of themselves as a special breed. For example (car dealers or anyone working for dealership in management. )
Posted via Mobile Device
Perfect touch landscapes
12-27-2009, 09:18 PM
I have learned 12 month contracts work well in subdivisions where trees are mature, customers that have mulch installed instead of rock and neighbours are hard to penetrate. I have had people stop by and say my customer must be rich to have me at their property almost 52 weeks a year. Times like that are great for punchline and marketing, I let them know that it is not that expensive. Biggest challenge is educating homeowners and telling them how many services they are missing out on. You can't sell full meal deal to everybody, but the ones that like prestige and perfection this is it. I have found valuable info how to modify my 12 month contract to avoid getting hurt. asking downpayment when contract is signed is a big help. If client is behind I would not hesitate to stop services. When you are always 30 days behind it is a different story. I have learned sertain types of people cause more trouble and sertain are happy no matter what . I set down and separated easy clients from different. I will tell you working for Bisiness owners is a different ballgame compared to salaried clients. In my opinion being more carefull with so called untamed clientelle ,showed true collors of everyone in contract. I just hate dealing with keep up with the jones type, kind that lives larger then can afford, everything to them is a hagle and they trully think of themselves as a special breed. For example (car dealers or anyone working for dealership in management. )
Posted via Mobile Device
P.Services
12-27-2009, 09:25 PM
You don't have a problem with their bossy fit? If payment is small and they don't pay ,smart ones know I don't want to waste time with collections or lien. What do you do incase no complience? I just had dealership contract, brought everything to be like it should be. When I got account I thought I dealt with owner. He wanted me to do his personal account also. When I invoiced first payment with two different monthly fees( home and buisiness) he calledme and told me to include personal with home in one payment and not to disclose on invoce that home is included. I felt something was fishy. He was pain in the ass customer. His plaza had 5 other buisinesses in it. I found out that all 5 buisinesses were paying him 400.00 a month for landscape maintenance. One day one of owner came up to me and asked me to bid his home after we talked a little he realized that I was servising also home account of the owner and I only billed him 550.00 a month. He told me that this plaza was owned by 5 owners and they all pay association money every month. Then he figured out that client that I signed contract with was including his home and 5 owners were all paying for it. He got pissed off. anyways he contacted client I signed contract with that I thought was the only owner and tryed to ask him how come he is making all coowners pay for his personal ****.I got a call got botched at that I as pissing off tenants.customer I had agreement with told all co-owners that I did his home for free(250.00) a month. I was in the middle one guy was pissed off that 1 owner got home maintained on the house other was pissed off they he was caught stealing. Client got pissed off that I talked and fired me. Well I didn't realize this was going on. I got contract it is not as detailed as I want it to be. I don't have a clause for collecting one month or
holy shet. proof read it before you post please.
HOOLIE
12-28-2009, 02:29 AM
I have been using 12 month contracts on residential and commercial, on commercial it works like acharm but 25-40% of residential customers abuse contract and terms. They are extremely happy when I get contract, then they call and call asking when I will do mulch cleanup, mow, weed, fert, I do explain that I can't provide all services at once because payment is set, yet accounts are in bad shape. I started collecting one month upon acceptance and every month after that, no matter how I explain, when tornados hit, floods, storms, molles,fungus,bagworms, sabotage ,watering flowers every morning and all kinds of other nonesence that is not forseen I don't cover that as part of contract. I need some help with verbage, creativity, and being carefully of not getting hurt, by someone canselling contract in October ( when I start collecting mostly profit,yet they try to get rid of you because they see you as liability and forgot how much work I have done in the beggining.
Posted via Mobile Device
Sounds like you need to provide a timeline of services to your customers, so they know when to expect certain services.
I've mentioned this in other threads...I don't offer 12 month contracts to new customers...only returning customers, and the contract payment dates are the last day of the month, Jan-Dec. So they've already made 2-3 payments to me before I've done any work. If you run them April-March, you're inviting trouble.
Perfect touch landscapes
12-29-2009, 12:24 AM
I don't pick up all customers in months that I want, they come year round, but you are right I got to specify dates of services.
Got any suggestions how to best word it
thanks.
Posted via Mobile Device
SchnabelLawnCare
12-30-2009, 07:53 PM
I don't pick up all customers in months that I want, they come year round, but you are right I got to specify dates of services.
Got any suggestions how to best word it
thanks.
Posted via Mobile Device
For a first, use proper grammar.
Perfect touch landscapes
12-30-2009, 09:29 PM
For a first, use proper grammar.
Ok dad, thanks for taking your time and reminding me.what could I do with out you?
Posted via Mobile Device
anotherturfgeek
01-01-2010, 01:40 PM
I have been using 12 month contracts on residential and commercial, on commercial it works like acharm but 25-40% of residential customers abuse contract and terms. They are extremely happy when I get contract, then they call and call asking when I will do mulch cleanup, mow, weed, fert, I do explain that I can't provide all services at once because payment is set, yet accounts are in bad shape. I started collecting one month upon acceptance and every month after that, no matter how I explain, when tornados hit, floods, storms, molles,fungus,bagworms, sabotage ,watering flowers every morning and all kinds of other nonesence that is not forseen I don't cover that as part of contract. I need some help with verbage, creativity, and being carefully of not getting hurt, by someone canselling contract in October ( when I start collecting mostly profit,yet they try to get rid of you because they see you as liability and forgot how much work I have done in the beggining.
Posted via Mobile Device
My terms specify how many weeks of lawncare, How many mulch jobs and times(spring and fall). Materials are extra ALWAYS!! this will keep you from really getting screwed upon early cancellation.
Also, MOST importantly if there place needs ALOT of work to bring it up to your standards. Do an initial clean-up or mulch job or anything else they want done outside the maintnance contract.
Keep in mind that maintnance contracts are just that. To keep them looking nice.They are not to renovate!
If it's not in the contract in black and white It is extra$$$
My contracts can be terminated by either party for any reason with 2 wks notice. No fees for early termination (I don't depend on my business for income only part time)
Perfect touch landscapes
01-01-2010, 08:45 PM
Well put
Posted via Mobile Device
anotherturfgeek
01-01-2010, 10:56 PM
Seriously, the initial clean-up is the way to go. some customers will argue up and down to begin with but hey, once you explain the severe overgrowth conditions of shrubs, weeds, vines or whatever and the initial bed edging that needs done and how nice their yard will look afterward, they will fork over the cash for it. These conditions are not your fault so why would you work your butt off to bring there yard up to an acceptable condition for no extra money? This way if in October,if they want to cancel on you, you will lose less!
This works very, very well for me. My customers really appreciate me being so upfront with them. Outline what you think needs to be done(tell them) then ask if there is anything they want to add(very important question more cash).
Listen very carefully because they will tell you exactly how to close the deal if you listen, listen, listen...
Perfect touch landscapes
01-01-2010, 11:32 PM
I am love to make a yard look like it didn't look on the day of instalation, my avarage clean up consists of 1-2 20 ft trailers. Like you said why should I do that for a whopping monthly fee, where normally I get 1500-2000 for clean ups like that. Yet they argue till last minute that yard is not in such a bad shape. I find garbage under shrubs from 5 years ago
Posted via Mobile Device
CkLandscapingOrlando
01-02-2010, 07:46 AM
Yea I can maintain it how it looks or we can clean it up and maint how it should look
Perfect touch landscapes
01-02-2010, 03:24 PM
One problem I run in to, I always, maybe most of the time do work as I would of done it for myself, I hate doing work half ass, because my reputation is known for high quality, I will register onother name this year and let that crew do work like everybody else does.
Ok let's be honest 50-75% of clients want upkeep not maintenance.
In my opinion there is a difference.
Trimming boxwoods 3x a year and trimming them once in 3 years.
To allot of people they don't see the difference between.
Like in fall they tell you to stop mowing, but grass needs onother 3 cuts.
It's like when we go to do maintenance on our cars, shop upsells on filters, filling liquids, yet we just get oil done and hold off rest till it is out.
It is amazing how people spend thousands of dollars a year on grass.
If you go back 100 ago or even during current time in all other countrys, landscaping is not given that much thought. We lco's are used to doing this every day, and we can see 1 inch of growth on shrubbery, but client can't tell the difference. Unless overall shape looks about the same, they don't care about simetry, health, and proper growth control.
Posted via Mobile Device
Perfect touch landscapes
01-02-2010, 03:34 PM
It amazes me seeing $ 10.000.000 castles, in movies with out a single shrub, or grass is wild and fated. Then you see 10000 sqft property with 50 trees and 1000 perenials and shrubs.
Some people buy home with nothing installed for that reason and others get caught up with beauty of property as it was just serviced, whith out realization it will cost tens of thousands of dollars to maintain.
So they buy, and after getting few bids , they neglect and neglect until one day you see for sale sign.
Posted via Mobile Device
CkLandscapingOrlando
01-02-2010, 05:03 PM
I just charge more per visit for crap props. I'll give a price for monthly service on every thing and then one for the week to week which most crap props want here. The fact is the price you'll pay me to go year round is bout the same as you not wanting any work done all year. Try to force them to a nicer package I quess.
carefreelawncare
01-27-2010, 06:10 PM
i would love to talk to someone about specifics on their 12 month contracts. i want to do this, but not sure what to offer and how to price it to make it seem like a good deal. email me at RObert@carefreelawncare.com if you wanna tudor a 3rd year solo operator. i certainly have a lot still to learn and always enjoy hearing how other people do the jobs.
vBulletin® v3.8.6, Copyright ©2000-2012, Jelsoft Enterprises Ltd.