Long Term Contracts

Discussion in 'Lawn Mowing' started by RB, Feb 28, 2002.

  1. RB

    RB LawnSite Senior Member
    Posts: 306

    I noticed that a few of us on this forum are using a seasonal contract for the first time. I think at the end of this season we will wonder why we didn't do this long ago.

    I would like to start some dialogue about residential lawn maintenance contracts longer than one season or longer than 12 months. Who has evolved from an annual contract to a 2 or even 3 year contract and could add some valuable info for us who are beginning to think about it?

    Thanx.
    Ron
     
  2. Simple rewording of your length of contract and you have it.

    Now selling it at a locked in price may be a good selling point.

    I have a few comm contracts that are 5 years.
     
  3. Mykster

    Mykster LawnSite Senior Member
    Posts: 668

    My buddies wife works for a large plumbing contractor. When they moved into their new building I asked her who was doing the install as well as the maintenance and what they charged. She said they gave them a real good deal on the install if they signed a 5yr. contract for the maintenance.
     
  4. RidgeCon

    RidgeCon LawnSite Member
    Posts: 72

    We have a number of commercial contracts that are 3, 4 and five year contracts. Great to have . I have started doing this for smaller contracts and allowed a bit of a better price if agreed to. It makes everyone happy because they get a break and I can make some real plans for a number of years.
     
  5. Premo Services

    Premo Services LawnSite Bronze Member
    Posts: 1,516

    This was a good post, and I thought more would respond to it.

    I am already wondering why I didn`t do this last year, or earlier than that!!!! I sent proposals out and all of them were accepted. Along with the signed contracts, there were 4 checks with the amount of the first installment included, a month before they are to be due.:D
     
  6. GroundKprs

    GroundKprs LawnSite Bronze Member
    Posts: 1,969

    If you are using contracts, just add an option to extend the contract for the next season. I always specify the dates. And have usually indicated a 5% increase in prices for second season. Since going to this system, I think all clients have taken the two years. Cuts my contract paperwork in half - now I do half of them each year.

    I never give more than one year proposal to a new client. Maybe they don't want to marry me for 2 years, and I definitely don't want to marry them for 2 years until I know how we get along. LOL

    Some businesses will want a 4-5 year contract, in order to reduce the work of lining up service every year, and to help them plan expenses in near future. Just remember to have fixed or variable (COLA related?) rate adjustments during multi-year agreements. Also you may want a multi-year commitment from a client, especially if you are investing in new equipment to service his property; this type will generally require a $$ penalty for cancellation.
     

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