Question about cancellations

Discussion in 'Business Operations' started by exmarkking, Jun 27, 2013.

  1. exmarkking

    exmarkking LawnSite Bronze Member
    Posts: 1,012

    Hey guys quick question,
    This year I put everyone on a year round service calendar. They pay the same price per month year around and that includes weekly mowings thru the growing months, bi-weekly mowing thru the off season and shrubs three times a year. I didn't make them sign a contract, if someone wants to cancel how do I go about the extra work I completed that would have been paid for thru the slow season. I have a lady demanding me to cut the shrubs but she informed me that in July her grandson is going to start mowing to make money for a computer. I feel like I don't owe her shrubs because she is canceling and she thinks that I do because its in the service calendar.
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  2. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,256

    I don't know but im interested in others responses.

    I charge by the week and bill at the end of the month.

    If you lowered your "summer" price to accomidate "winter " pricing your likely screwed.
     
  3. inzane

    inzane LawnSite Silver Member
    Posts: 2,348

    i'm interested in responses too. I want to go this route eventually.. But how are you gonna bundle everything together in a yearly package without a contract? so what this means is after all the summer work is done, they can cancel in the winter if they want to, then you worked for dirt cheap all summer right? I guess i don't get it. I charge by the cut still.. It works out ok for now, but its getting to be a huge pain in my a$$.

     
  4. exmarkking

    exmarkking LawnSite Bronze Member
    Posts: 1,012

    I don't charge less in the summer. Long story short, I charge the same price as I would per month if I cut it 4 times. I throw in the pruning 3 times a year and switch to every other week in the fall/winter. I works out awesome but I need a way of wording the cancellation to where if they cancel mid season, they may be charged extra due to the fact that they weren't paying for the shrubs. You see what I'm saying?
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  5. inzane

    inzane LawnSite Silver Member
    Posts: 2,348

    do you include leaf clean-up / removal in the fall too?

    Hell, i'm tired of dealing with these cheap-asses in our area, not sure how you can sell yearly service here, i get plenty of calls each week and can hardly sell a $35 dollar lawn cut anymore. haha. I see your truck around all the time, nice setup!

     
    Last edited: Jun 27, 2013
  6. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,256

    I understand your billing method, I simply don't have a answer that would help you.
     
  7. exmarkking

    exmarkking LawnSite Bronze Member
    Posts: 1,012

    I'm thinking, since I already keep track of everything in gopher, if someone cancels mid season, ill have to add up what they paid verse the amount of work I've completed and if they haven't paid as much as the work completed, they owe me. May have to get a lawyer to draw it up. I don't have contracts because the customer can cancel, but I call it a service agreement. It's a gray area for sure.
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  8. Mayor of Mow Town

    Mayor of Mow Town LawnSite Member
    Posts: 76

    Just thinking out loud here, but could you apply a cancellation fee based on how many months they have left in their annual agreement? e.g. If they cancel after 7 months, you charge them 5 x ? dollars as a cancellation fee. You'd have to do the calcs so you recoup any money, but at least then it's easy to explain & the same formula for everyone.

    It's kind of how mobile phone contracts work here in Australia.
     
  9. Clippers PLS

    Clippers PLS LawnSite Bronze Member
    Posts: 1,059

    The company I partnered with does not do a yearly contract but I don't see how this would work unless the customer signed a contract because of problems like this
     
  10. exmarkking

    exmarkking LawnSite Bronze Member
    Posts: 1,012

    Mayor,
    You may be on to sonething
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