Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Reply
 
Thread Tools Display Modes
  #1  
Old 06-27-2013, 09:11 PM
zda777 zda777 is offline
LawnSite Member
 
Join Date: Sep 2011
Posts: 3
Trying to Move to Contract Only advice

I'm going on my 3rd year in the business
and I'm looking for input and advice

I'm in Florida and we currently have about 7 commercial contracts
and 10 Residential contracts Roughly 2700$ a month
Next we have about 100+ verbal agreements and oncall customers
about 6-8k a month

At first we took everything we could get as long as it made decent profit
But its just stressful to have a schedule mixed with weekly bi-weekly and oncall, and its a hassle collecting individual payments and keeping track of a late or missed payment, Id prefer to just go down the checklist once a month to make sure every contract paid,
also when winter comes most of the non-contracts become ghosts
i have 2 fulltime and 1 part time employee
and i hate to let people go for winter


I think its in the best interest of the company long term to only do contract customers and market for only contracts
But i need a smooth transition

because I don't want to throw 6k a month away and 30-70 customers, some of which i have been doing for 2 years

I don't mind the Contract or No cut conversation, But I'm having trouble making the shift yet keeping my dudes employed,

what would your advice be *sorry for the long post*
Reply With Quote
  #2  
Old 06-28-2013, 03:01 PM
Colaguy's Avatar
Colaguy Colaguy is offline
LawnSite Senior Member
 
Join Date: Mar 2013
Location: Pensacola,FL
Posts: 599
Welcome! Where r u located in Florida?
__________________
Stihl Kombi System
028 Super, 066 Chainsaws, PP 800 Pole Saw
F-150, F-350 Trucks
Ariens Rear Tine Tiller
(6) Trailers:
5x12, 6x12, 6x14, 8x16, 7x18, 6x22
Asus Transformer Infinity TY700 Tablet
Galaxy S3
Bananalogist




If you think it's expensive to hire a professional to do the job, wait until you hire an amateur.

Red Adair
Reply With Quote
  #3  
Old 06-30-2013, 03:57 PM
cpllawncare's Avatar
cpllawncare cpllawncare is offline
LawnSite Silver Member
 
Join Date: Apr 2011
Location: Greenville, SC
Posts: 2,644
Contract only works great for commercial but not so much for residential.
Reply With Quote
  #4  
Old 06-30-2013, 05:43 PM
32vld 32vld is offline
LawnSite Silver Member
 
Join Date: Feb 2011
Location: LI NY
Posts: 2,440
I see the problem as you are letting your customers control your schedule.

Problem is not contracts.

You need to tell your on call customers that you only do on call on Mondays. They have to call by the previous Thursday and they must have the check post marked by the previous Friday of the service.

EOW's are done on Tuesdays. Half one week, the other half the next week.

Now you are controlling your schedule and you have made payment management easier.

Reply With Quote
  #5  
Old 06-30-2013, 05:58 PM
shovelracer shovelracer is offline
LawnSite Silver Member
 
Join Date: Sep 2004
Location: North Jersey
Posts: 2,009
Agreed schedule management is key. You need to run the business not the customers. Really all a contract does it documents the terms of your agreement so both parties have something to refer back to. Your terms could be any. What you do is force any new leads into your new policies. Then when you have enough work that you need to start letting some go you work in your new policies. Mid year is not the time to do these changes. You want to make changes like this during the off season a while before your peak new lead season. This way you can replace or work to find replacements if and when people back out. Yes deadbeats, EOW, and on call customers do not like contracts, but you can potentially get better customers which will ultimately make your life better.
Reply With Quote
  #6  
Old 07-09-2013, 11:47 PM
zda777 zda777 is offline
LawnSite Member
 
Join Date: Sep 2011
Posts: 3
Thanks for the Feedback Guys
I Would have responded sooner but I didn't know the Thread had replies

For the first question i'm in Jacksonville Florida
Reply With Quote
  #7  
Old 07-10-2013, 12:27 AM
TriCountyLawn's Avatar
TriCountyLawn TriCountyLawn is offline
LawnSite Bronze Member
 
Join Date: Aug 2005
Location: NW Indiana
Posts: 1,518
A few thoughts here ,

"Contract" scares away customers, "service agreement" not as much. Make it easy for the call onlys or EOW customers to pay online or with their plastic. A step beyond that would be to require a card on file so that you can charge soon as your complete and not waiting or chasing down coin.

Scheduling/invoice software makes it pretty easy to keep track of non regular work as well. Saves ya some time in the office.

Do your commercial stuff at the beginning of the week as well as the EOW and call ins. I would do one day only of call in work and maybe work some of the call in ppl into getting on a reg schedule by telling them that your full this week.
Reply With Quote
Reply

Tags
advice , contracts , question , switching , winter

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 11:30 AM.

Page generated in 0.06192 seconds with 7 queries