Auto renew contract?

Discussion in 'Business Operations' started by scraper69, Feb 8, 2006.

  1. scraper69

    scraper69 LawnSite Senior Member
    from mi
    Posts: 477

    what about doing a contract that is ongoing.. no need to keep having signed each year? I hate resubmitting every year and waiting for reply. ANy of you do this? It would be a continuous contract until the price increased or the customer cancelled.
     
  2. Lawnmasters

    Lawnmasters LawnSite Member
    Posts: 180

    My contract states that it will auto-renew unless I hear otherwise, in writing. Very seldom do I have people say they don't want to be done. I get more grief from people complaining tha we haven't done them yet. Another benefit is for those who are sitting on the fence and havent decided yet, if you show up and do it, I have lots say, well since your here, go ahead. Or sometimes I was meaning to call you or send back my contract and check, glad you showed up.

    Every now and then you have to eat one you spray without hearing from them, but the cost of that versus what you gain or keep each year is worth it.
    Good luck this year.
     
  3. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    The term is called "evergreen".
     
  4. Jpocket

    Jpocket LawnSite Silver Member
    Posts: 2,278

    This all sounds good, But I always like to hear back from people. My commercial accounts are auto renew, but most of them im there year round for the snow anyway, so it's a "seamless relationship" Iike to call it. Where as on residential accounts the customer hasn't seen me since November. They get a Holiday Card in December, but thats it 95% of them don't hear from me until March.

    It's just nice to get the written agreement back that way you know for SURE what accounts you have.
     
  5. jpmako

    jpmako LawnSite Senior Member
    Posts: 593

    My agreement automatically renews and I just send out a letter to everyone asking if they will require any extra services in the upcoming season.
    Most of my clients have one contract that covers everything from clean-ups to mulch and pruning. This greatly improves my ability to schedule jobs, and also alleviates the hassle of sending out and WAITING for contracts to be signed.

    Here is my auto renewal clause

    A.) This agreement shall become effective beginning on the date of acceptance and shall continue for a period of twelve consecutive months until one year from the date of acceptance has been reached. Upon its completion, this agreement will automatically renew for an additional one-year commitment, and shall continue to automatically renew after each completion until it is terminated in writing. The rates for grounds maintenance services are seasonal and are subject to increase at anytime without prior notice.


    Jason
     
  6. scagwildcat

    scagwildcat LawnSite Senior Member
    from nw. ct.
    Posts: 507

    this type of contract works well, but what if they move and dont tell you??? its happend to me!!!!
     
  7. eruuska

    eruuska LawnSite Senior Member
    Posts: 454

    All my contracts are auto-renew. I'm going to send out a letter a couple weeks in advance letting them know when to expect me. If they're going to cancel their agreement I'm gonna make 'em work for it!
     
  8. scraper69

    scraper69 LawnSite Senior Member
    from mi
    Posts: 477

    I think im gonna try it this way this season... add "continuous clause"
     
  9. HOOLIE

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    Maybe you lose out on the money for one cut...or you could spend hours writing, printing, stuffing letters....plus the postage....plus the time for additional follow-up calls to customers that don't respond...

    I view my biz as a year round business that just happens to have some downtime each season...with December's bill I always mention that service will continue automatically in the spring.
     
  10. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

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