do you get them under contract?

Discussion in 'Business Operations' started by jims5964, Feb 9, 2006.

  1. jims5964

    jims5964 LawnSite Member
    Posts: 23

    I never used a customer contract before, I have always used a verbal agreement to do business. I was just wondering do you guys get your customers to sign a contract?
     
  2. TURF DOCTOR

    TURF DOCTOR LawnSite Silver Member
    Posts: 2,138

    Some do and some don't,some 1 on here say's a contract is worth the paper it's written on.
     
  3. jims5964

    jims5964 LawnSite Member
    Posts: 23

    I know but I was just thinking the business might be worth more with contracts if I go to sell it.
     
  4. All_Clear

    All_Clear LawnSite Senior Member
    Posts: 443

    To be honest with you... Selling your business is fine if your talking equipment and customer list (selling customers to someone else is very hard)

    Not everyone is going to run your business the same way you do... Customers you had may for whatever reason not like the guy you sell to, if you think locking them into a contract to sell will get you more money when selling... your wasting your time.
    If however you want your customers on contract for legal purposes in your own business then I'd say sign them up.
    If verbal works and you haven't had any problems then do what works.

    Not being rude but most people wont buy customers or customer lists.


    All_Clear
     
  5. jims5964

    jims5964 LawnSite Member
    Posts: 23

    I am not planning to sell anytime soon, I was just looking down the road 10 or 15 years and I just want to position my business to be appealing to potential buyers in the future.
    I like working with verbal agreements because if they are not happy with me or I with them why should either one of us be forced together.
     
  6. All_Clear

    All_Clear LawnSite Senior Member
    Posts: 443

    If you were to sell down the road... Your equipment will bring the best $.
    Selling a list of potential clients the buyer could make it appealing. Lets say you have 150 clients on your list that may be interested in the new buyer servicing them... maybe 100 sign, maybe more, maybe less (this is what makes it hard to put a price on clients or client lists) Some customers wont want to be sold.

    All_Clear
     

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