contract or per application?

Discussion in 'Pesticide & Herbicide Application' started by Springmeadows, Feb 12, 2005.

  1. Springmeadows

    Springmeadows LawnSite Senior Member
    Posts: 390

    I have been licensed since 1998 and basically have done very little with it. This spring I have decided to build the chemical application part of the business and did alot of research on my costs and products. I have developed a program for my area and now just have one question.

    Is it better to make a contract that will pay me per application at the time of treatment, or make it a monthly amount that will be over the growing season for the whole program. On one hand I think it would be better to get paid right away for the application I just completed. Then again, I think it would be better to get the same amount per month. I kinda need some feedback concerning this.

    And yes, I am licensed and carry insurance. I have been in lawncare/landscaping since 1991. Please be respectfull with comments, I don't go for all the bashing.

    Thank-you. :cool2:
  2. Mark McC

    Mark McC LawnSite Bronze Member
    Posts: 1,565

    You've had insurance all this time and did nothing with it? Yikes. I can't throw money away like that.
  3. Pay all at once, (pre pay with a discount) or pay after each application, that is generally the way most guys do it.

    I offer a pre pay before or right after 1st application, or they pay after the first 3 applications, and I generally apply 4 applications. They can cancel at the end of any application
  4. Springmeadows

    Springmeadows LawnSite Senior Member
    Posts: 390

    Well, I said I have done nothing with it. But, actually I have a contract for some large area spraying of kudzu that pays to keep my license, expenses, and some profit. I just have not gone after more business to make my license really pay off.

    So it's not like I have been paying insurance and expenses without anything coming in.

    Thank-you for the replies, I will plan on offering prepay options and multiple application discounts. Also, I will plan on writing contracts to explain what I spraying and when. The contract will also explain payment options and requirements.

    Thanks again, guys.
  5. jajwrigh

    jajwrigh LawnSite Bronze Member
    Male, from Martinsville, IN
    Posts: 1,405

    I am going into my first season applying as well and I am going to go with the pay per application. More money at a time and its spread out throughout the season, so the customer doesn't notice as much money going out.
  6. ThreeWide

    ThreeWide LawnSite Bronze Member
    Posts: 1,116

    Pay per app also makes it easier if you have a special scenario come up. My program only covers fert and weed control. You cannot anticipate things that are out of the ordinary. What if they get a disease and need fungicide? Also, not everyone requires lime every season. Should you do a soil test and a particular client needs lime, you just do an extra app once the customer approves.

    If they've already paid for the year, the extra apps become much more of a financial issue. People generally will push back on extra charges if they've already "paid you" for the season.
  7. Springmeadows

    Springmeadows LawnSite Senior Member
    Posts: 390

    Thanks guys for all the great comments. I have definately made up my mind about what my plans are now. I write a contract for the program just to fertilize and weed treat; get paid after each application. Then if they want or need extra treatments I will write an adendum to cover those extra applications.

    That way I'm covered and the customer still feels like they know and understand how the program works.

  8. jajwrigh

    jajwrigh LawnSite Bronze Member
    Male, from Martinsville, IN
    Posts: 1,405

    Sounds like you have made a wise and educated decision to me....good luck!

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