My Son is home from College Trick

Discussion in 'Starting a Lawn Care Business' started by Callahan's Lawn Services, Jun 10, 2013.

  1. Callahan's Lawn Services

    Callahan's Lawn Services LawnSite Member
    Posts: 51

    I can deal with cancellations and I do keep my customers on file indefinitely. Heck I even save every email that gets sent back an forth between us ( they all have their own folder with invoices and correspondence). Some customers I'm actualky thrilled at the idea of them cancelling services. Being that I started out just this year, I really shot myself in my foot with pricing my first jobs. Now I know my operating costs, I can give quality estimates to emulate the services that I offer. All the ones that have cancelled are the ones way off my very tight scheduled route and pretty much have been costing me $$ to mow them. But then again when you first start out you will be all over the dang place with yards scattered everywhere. Good thinking on my part was to market in the neighborhoods I was already in and gain customers that way to maximize profits and keeping my routes tight. Thanks everyone for your input on this subject as it bothered me in the beginning but now realize life goes on and grass still grows, so I'm still mowing.
     
  2. Wayne's Lawn Service

    Wayne's Lawn Service LawnSite Member
    Posts: 184

    I suggest a professional contractor do what is best for their business. It is certainly not a one size fits all.

    For our business, service contracts make sense for both residential and commercial accounts.

    Utilizing a service contract has nothing to do with going to court for four mowings. It actually prevents that in most cases when the client is simply sent a copy and reminded that they do have stipulations to service being provided and cancelled. Your service contract should also include the fact they they are responsible for any monies required to collect the monies due for the services provided.

    Last but not least, service contracts are an account receivable for your company as well as an asset to your company. When and if a person sells their business, needs to finance new equipment, etc., the value associated with a business that utilizes contracts is in most situations more valuable than a company with verbal agreements and handshakes.

    Personally for our business, our service agreements have helped us collect money that would not have been paid otherwise by the client.

    Do what is best for your individual business.
     

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