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what do you think of this idea?

Discussion in 'Business Operations' started by lawnwizards, Mar 4, 2010.

  1. lawnwizards

    lawnwizards LawnSite Silver Member
    Posts: 2,434

    thinking about giving a 5% discount to people who sign up for the year. the catch is, if they cancel within the year they get an early termination fee. kinda like cell phone plans or satellite providers charge. something to the effect of the 5% discount they were receiving plus an additional 5% for each month left in the contract. does anyone do this? just really bored today so dont bash too much. :waving:

    ex: 30 cuts at 25 bucks a cut=750. if you sign up for the year you get a 37.50 discount. if you cancel service anytime during the year you have to pay back the discount plus 5% of each month left on the contract. 1 month =$5, 2 months =$10 and so on.
     
  2. rm25x

    rm25x LawnSite Member
    Posts: 187

    Hmm interesting concept I guess. Try it and see how it works out for you.
     
  3. grassaholic

    grassaholic LawnSite Senior Member
    Posts: 369

    Sounds like a good idea but, good luck collecting if someone cancels. There are some guys on this site that claim they have a lawyer draw up their contracts and will take a customer to small claims court if they have to. It all sounds like a waste of time and money to me. The only contracts we've ever used have been for commercial accounts and HOA's. If you do good work a residential account will rarely cancel. If they do cancel you during the season then chances are that you or an employee did something to piss them off. Like I said earlier, good luck collecting additional money from someone thats pissed and just cancelled your services.
     
  4. bigw

    bigw LawnSite Bronze Member
    Posts: 1,540

    Dont do it,its not going to fly!!Its hard enough getting a residential to agree to any contract let alone one where they could lose money if they decide not to use your service anymore,not bashing on you but just not a good move.

    I Look at it this way if you do good work and you are reliable you probably have nothing to worry about as far as losing a customer and if you do lose them over being low balled { not a customer you want anyway} or they simply decided to do it themselves then so be it and just move on. Bottom line not going to work,just trying to help!
     
  5. EJD Lawnpride

    EJD Lawnpride LawnSite Senior Member
    Posts: 313

    I agree with bigw. Not worth it!
     
  6. lawnwizards

    lawnwizards LawnSite Silver Member
    Posts: 2,434

    oh i'm not gonna pursue it. it was just an idea that came to me. sorta like the 12 month payment plans that some people have on here. i'm pretty set in my ways as to how i do business. i've never been stiffed in 8 years. "knocks on wood". :laugh: i just like to throw around new ideas every now and then.
     
  7. matt10486

    matt10486 LawnSite Member
    Posts: 210

    Vintage, saw that you are hiring. Good luck. Do you make your residentials sign contracts?
     
  8. kootoomootoo

    kootoomootoo LawnSite Platinum Member
    Posts: 4,369

    why would I give the lawn guy $750 just so I can save $37.50.

    most lawn guys arent AAA rated.
     
  9. Carolina Cuts

    Carolina Cuts LawnSite Bronze Member
    Posts: 1,152

    1. 5% isn't squat...
    2. Customers don't like to feel pressured.
    3. Here is my verbal contract...."If you like us, then we like you. If you wish to cancel service, feel free to do so. Have a nice day."
     
  10. LB1234

    LB1234 LawnSite Gold Member
    Posts: 3,210

    We run specials (coupons) in our spring advertising. 10% off this service or buy one get one free or whatever. When I write up the contract and do have that if they cancel the contract before "x" date than they owe the "coupons" back. Didn't scare anyone from signing AND it worked when a customer left months before contract end.

    so to each there own.
     

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