Auto renew contract and price increases

Discussion in 'Business Operations' started by JimmyStew, Mar 21, 2008.

  1. JimmyStew

    JimmyStew LawnSite Senior Member
    Posts: 367

    Question for those of you who have contracts/service agreements that auto renew. How do you state what your price is and how to you increase that price without a new contract?
  2. Rcgm

    Rcgm LawnSite Senior Member
    from Indiana
    Posts: 314

    My contracts auto renew ever year unless canceled by me or them. I have a clause in there that states if there price is going to be raised for any reason we have the right to do so but we will send the price increase to them in the mail within 14 days in writing. If I need to raise the prices in the middle of the year on a major contract I send it certified mail that they sign for so that I know they got it. I usually raise them in the spring only.

  3. grass-scapes

    grass-scapes LawnSite Bronze Member
    Posts: 1,552

    Mine is set to auto renew at the same price only. If I need to raise prices, then they need to sign another contract. It gives me an opportunity to talk to them face to face, see if they have any issues, and give my increase in person.

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