Help with contract

Discussion in 'Business Operations' started by LAWN-BOYZ, Jun 11, 2005.

  1. LAWN-BOYZ

    LAWN-BOYZ LawnSite Member
    Posts: 12

    I am in my fourth year of business and this is the first year that I have put all of my customers on contract. So whether I cut their lawn or not they are billed roughly 100 bucks a month. The problem is that we are still in the spring and some lawns seem to be already dormant. We are not getting any rain!! I feel guilty because I am charging my customers for 4 cuts when I may only have to cut their lawns once or twice per month for the rest of the season. The thing is though, my expences dont change: I still have insurance payments, university tuition etc. Any advice? How should I handle complaints when they come in - and I know they will?

    I don't want to do the per cut system again because there is no way i would be able to afford it.
     
  2. JRAZ

    JRAZ LawnSite Member
    from NW
    Posts: 143

    What is wrong with the per cut system? It should be a gaurantee to not loose money if you are priced right.
    Does your contract have a cluase in it that "lawns will be mowed weekly in the spring unless conditions do not require mowing. To be determined by contractorat his discretion." ?? Something like that may cover your tail. If they agree to your pricing after that then no problem as long as you are not lazy with your discretionary part.
     
  3. BrunswickMowing

    BrunswickMowing LawnSite Member
    Posts: 44

    Your college tuition is part of your overhead?
     
  4. LAWN-BOYZ

    LAWN-BOYZ LawnSite Member
    Posts: 12

    There is a clause that says 'includes weekly visits' so everytime i stop at the property whether i cut or not I am paid the full price of the lawn. This works well with customers who are watering, but there is a watering bylaw in effect right now, so customers can only water for 3 hours tops on there specified day. I feel bad for some of my older customers who are paying me to do nothing, but at the same time, i still have the gass for my truck and my drive time.

    I do like the contract system, but it has its drawbacks. My contract is based on a 22 week cutting season. If the season goes longer i pay for it.

    no college tuition is not part of overhead, but it needs to be payed whether or not the grass grows.

    Thanks for the interest guys
     
  5. LAWN-BOYZ

    LAWN-BOYZ LawnSite Member
    Posts: 12

    Anyone else have a comment or suggestion?
     
  6. Team Gopher

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

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    Hi LAWN-BOYZ,

    Many utility companies offer a fixed monthly billing based on an average of your last year's usage, whether or not you actual use the same amount as you did in the previous year.

    Maybe you could mention that to your customers?
     

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