contract or per application?

[Springmeadows]

I have been licensed since 1998 and basically have done very little with it. This spring I have decided to build the chemical application part of the business and did alot of research on my costs and products. I have developed a program for my area and now just have one question.

Is it better to make a contract that will pay me per application at the time of treatment, or make it a monthly amount that will be over the growing season for the whole program. On one hand I think it would be better to get paid right away for the application I just completed. Then again, I think it would be better to get the same amount per month. I kinda need some feedback concerning this.

And yes, I am licensed and carry insurance. I have been in lawncare/landscaping since 1991. Please be respectfull with comments, I don't go for all the bashing.

Thank-you. :cool2:

[Mark McC]

You've had insurance all this time and did nothing with it? Yikes. I can't throw money away like that.

[timturf]

Pay all at once, (pre pay with a discount) or pay after each application, that is generally the way most guys do it.

I offer a pre pay before or right after 1st application, or they pay after the first 3 applications, and I generally apply 4 applications. They can cancel at the end of any application

[Springmeadows]

Well, I said I have done nothing with it. But, actually I have a contract for some large area spraying of kudzu that pays to keep my license, expenses, and some profit. I just have not gone after more business to make my license really pay off.

So it's not like I have been paying insurance and expenses without anything coming in.

Thank-you for the replies, I will plan on offering prepay options and multiple application discounts. Also, I will plan on writing contracts to explain what I spraying and when. The contract will also explain payment options and requirements.

Thanks again, guys.

[jajwrigh]

I am going into my first season applying as well and I am going to go with the pay per application. More money at a time and its spread out throughout the season, so the customer doesn't notice as much money going out.

[ThreeWide]

Pay per app also makes it easier if you have a special scenario come up. My program only covers fert and weed control. You cannot anticipate things that are out of the ordinary. What if they get a disease and need fungicide? Also, not everyone requires lime every season. Should you do a soil test and a particular client needs lime, you just do an extra app once the customer approves.

If they've already paid for the year, the extra apps become much more of a financial issue. People generally will push back on extra charges if they've already "paid you" for the season.

[Springmeadows]

Thanks guys for all the great comments. I have definately made up my mind about what my plans are now. I write a contract for the program just to fertilize and weed treat; get paid after each application. Then if they want or need extra treatments I will write an adendum to cover those extra applications.

That way I'm covered and the customer still feels like they know and understand how the program works.

Thank-you

[jajwrigh]

Sounds like you have made a wise and educated decision to me....good luck!