12 month agreements

Discussion in 'Lawn Mowing' started by Nathan, Nov 30, 2000.

  1. Nathan

    Nathan LawnSite Member
    Posts: 193

    How many of you have year round yard service agreements? Most of our accounts are full service(pruning, raking weeding etc.)so we offer service year round with prices based on yearly cost broken into 12 equal payments. This way people aren't paying huge bills in the fall and small bills in the winter. The problem is that some people just don't understand that they are paying for the total work required for the year and not just for the work actually done each month.
    If any of you guys do similar practices let me know if you have figured a way to make sure customers understand the policy.
     
  2. Vandora Lawn & Landscape

    Vandora Lawn & Landscape LawnSite Senior Member
    Posts: 386

    Simply explain to them. I break the total bill for the year up into 12 equal payments. You pay less in season and more off season.
     
  3. landscaper3

    landscaper3 LawnSite Bronze Member
    Posts: 1,354

    All our commercial accounts for summer maintenance services are billed in 6 monthly payments. Our combined commercial accounts (condos, townhouses, factorys and professional buildings we maintain throughout the year we bill them on a 12 month program, but we have a few condos that summer service is $8,000.00 and winter is $12,000.00 so what we do is bill 6 for summer and 6 for winter. About 1/2 go on a
    2 to 3 year contract. Residential we bill per the service with monthly billing cycle on those. Thats why I love November not much work and the $$$ roll in before the snow removal service.
    Vandora siad it best!!!
     
  4. Skookum

    Skookum LawnSite Senior Member
    Posts: 675

    My full service contract accounts are usually setup on a eight month program, April - November. These are also the months I work. The annual total is divided evenly for those eight months.

    I do and have had accounts go for a ten or twelve month period for budget reasons even though I only work on the properties eight months. I did have one guy that wanted me to come and pickup more leaves in late December. I reminded him that it was not under our contract and I would have to charge him an hourly rate. He had no problem with it, after we talked about it for a while.

    He kept saying though, that the leaves had not all fallen that year so early and he was paying me anyway for that month. They tend to forget those months are paying for work done earlier in the year. Or sometimes at the begining of the year, they get a little ansy when you are going to start because the weather seems nice and they have paid you in advance.

    After a few years of your service they tend to worry less cause they know you will do what needs to be done.
     
  5. Greenkeepers

    Greenkeepers LawnSite Senior Member
    from NE Ohio
    Posts: 695

    I offer the 12 month to customers and tell them that any extra jobs will be billed separately. Not one person has accepted this, they want to pay for their monthly service...
    I don't care I still get the money, but I have to budget better for the lull inbetween cleanups and snow..
     
  6. Mark

    Mark LawnSite Senior Member
    Posts: 723

    I bill 12mo on my commercial, but alot of my residentual clients want to pay me by the month so i bill them each month, Thats what they like and i don't whan to loose the high-payers, I put enough $$$ back it works out alright.
     

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