Residential Yearly contracts

Discussion in 'Starting a Lawn Care Business' started by FIREMAN Q, Apr 9, 2006.

  1. FIREMAN Q

    FIREMAN Q LawnSite Senior Member
    Posts: 260

    I just signed my first yealy grounds agreement with a residential customer. I offer snow in the winter, spring/fall clean-ups, mulching and mowing. All for 1 monthly price.

    I was wonder how many of you do the same. What are some of the PRO's and CON's to this. I can only see PRO's because this is guarenteed income regardless of how much snow/rain we get.

    I am going to be pushing this aspect with all my new clients.
     
  2. LawnScapers of Dayton

    LawnScapers of Dayton LawnSite Silver Member
    Male, from Dayton, OH
    Posts: 2,574

    I have yearly lawn maintenance agreements and separate snow agreements. But my snow agreements are all per push. There is no way customers would sign monthly agreements for snow here. Especially since I only had one plowable event this winter.

    D
     
  3. Gene $immons

    Gene $immons LawnSite Bronze Member
    Posts: 1,028

    The income in the slow season will be nice. But you may spell out what IS and what IS NOT included for the monthly price.

    This way, if a big job, like a large tree falls over, they will know that the clean-up for that will be extra.
     
  4. Aadman

    Aadman LawnSite Member
    from VA
    Posts: 24

    I have several annual contracts with lower monthly fees...They pay a slightly lower fee because I only come twice a month Nov through March. Also I stipulate in there that is they cancel the contract before Sept they have to pay a lump sum fee equal to 4 months, before Nov 3 Months and before Jan 2 months. Because I come do twice monthly leaf clean up I have to protect myself from getting cancelled in the slow months.
    J
     
  5. Stuckwithit

    Stuckwithit LawnSite Member
    Posts: 12

    I put all of my clients on a monthly payment plan that covers the basics only. All other jobs that coem up throuhout the year they have to pay additionally. I typically have them on a 9 month plan. First month is usually 500-800 b/c of mulch and then I divide the balance by 8 and have their monthly payment.
     
  6. FIREMAN Q

    FIREMAN Q LawnSite Senior Member
    Posts: 260

    thanks for the replies. A couple of things I did not think about.

    Has anyone had a problems doing it this way??
     

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