Annual contracts verses monthly plans

Discussion in 'Business Operations' started by Bob G., Mar 26, 2005.

  1. Bob G.

    Bob G. LawnSite Member
    Posts: 2

    I would like any information and examples of how you fashioned and position your lawn care contract terms, along with how you keep people on the annual contracts and what kind of "penalties" do you have to keep them committed on the annual agreements and not leave me short after only using less than the contract term. :help: :help: :help:
     
  2. Tom-N-Texas

    Tom-N-Texas LawnSite Senior Member
    Posts: 370

    Just my opinion, but I think annual contracts are silly unless you are actually working at a job all year round. Annual contracts won't make you one dime more. It just makes some folks feel good in the winter time to have money rolling in.

    I say make your money when you earn it. Then save it. No problems, no issues, no worries about people skipping town or refusing to pay you. Why wait for your money?
     
  3. stumper1620

    stumper1620 LawnSite Bronze Member
    Posts: 1,889

    ya, I'm interested too,
    I have really been thinking of doing this for my fixed income seniors, I know 2 things with dealing with them the ones i would offer it to would need it. I can usually tell when they squeeze the money together to pay & the main reason I started to consider it with seniors is they are from the old school where you pay your bills.
    I've worked on getting it worded but haven't really gotten anywhere with it yet. I've metioned the thought to a couple of my current annual seniors and they really liked the idea of a flat rate per month that would only have minor adjustments to cover unexpected work. I tell ya if they are annual they want it. :D
    if i ever manage to tweak it so it will work, we'll see.
     
  4. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    We are on our properties all year. Contract reads- mowing every week 3-15 thru 11-15 and as needed during the winter. This year we mowed till Jan and started to cut some in Feb.
    Our contracts include lawn care and clean up of leaves so there is something to do all year. We just add up all the services and total, divide by 12= payment.
    We manicure the property all year long and it always looks good.
     
  5. kipcom

    kipcom LawnSite Senior Member
    from indiana
    Posts: 352

    In our area....with commercial accounts we have an annual contract for 12 months. This will include the winter services as well.

    Some choose to have a seasonal monthly plan and the cost is a bit higher than for those who have an annual contract. We also give a little discount to customers who make 2 or 3 payments only ie: quarterly etc.

    :cool2:
     
  6. Green & Clean

    Green & Clean LawnSite Member
    from Utah
    Posts: 25

    We offer our customers three options.

    1. Pay at the end of the month for the total number of cuts that month.
    2. Pay the same amount each month for our 7 month season. (the weekly price x 31 weeks / 7 months)
    3. Pay the same amount over 12 months. (weekly price x 31 weeks / 12 months)

    Most people go with #2.

    The last billing in the fall for our seasonal customers, we will adjust their bill if we have done less than 31 cuts. This has never happened, we usually do 31-33 cuts per customer.
     

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