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Discussion in 'Lawn Mowing' started by JFGLN, May 22, 2004.
I'am curious if anyone has had tried using 2 year contracts for commercial accounts?
I am going to try to use a 3 year contract come this fall
They scream like old ladies at a Fabian concert here in Houston when you mention more than one year. Good luck getting them to bite. It hasen't worked for me yet, and lord knows I have been trying......Jim
If I picked up an account that required me to add more equip. and or employees, I would insist on a 2 year term to make sure that all my new equip. got paid for. Nothing worse than paying for equip. that isn't making any money.
If you feel you can mow that property for the same price I always try to get a 2 year contract. Here's the reason, There are so many people trying to get my accounts that when they approach whoevers in charge they tell them sorry we already have someone. The reality is that almost contracts can be broken, but the bussinesses don't want to be hassled with renewing if they like your work. This has really seemed to help my commercial retention rate.
I used a 2 year contract on a Wal-Mart 2 years ago, at their suggestion. It included a 5% rate increase for the second year.
Now they have another new manager and he just wants a one year deal. I guess I look at it where if the people are happy with your work, you'll get the business back. Even if you get a new manager at some location, my experience has been they still use who they've had before since the previous manager must have been happy. Again, MY experience.
I do have a school district that I mow, about 120 acres, that I just renewed my contract with a 3 year extension. It's one of those accounts that aren't around here, and I wanted to keep it.
My largest account is a 3 year contract. I talked them into it last fall. I raised the prices 10% and told them I would hold that price if they agreed to 3 year. Its nice to not have to worry about the next years workload. I haven't had to go out looking for work in the last 2 years.