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what fee to charge

Discussion in 'Business Operations' started by Frontier-Lawn, Nov 18, 2004.

  1. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,938

    I have a guy that wants to pre-pay on a annual contract of $1,750. My question is if he cancels say---- half through the contract do i keep all the money as a fee?, or what should i charge on pre-pay's as a cancel fee?
     
  2. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    is it for lawn maintenance?

    What I do is they are still charged the rate for the month, even if they cancel on the 1st of the month, and then are given a credit, NOT a cash refund. They are also charged a one time fee of $100 for early cancelation of their contract.
     
  3. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,938

    well on the monthly billing i charge a down payment of 2 months. and if they cancel the contract, i keep the down payment as a cancellation fee. but i need what to do if they pay in full up front.
     
  4. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    if they pay full up front, what I do with one of my customers is the contract says, "the owner will be credited the amount to their account, with no cash refunds."
     
  5. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,938

    and yes this is lawn maintenance. on all landscaping jobs i have the 50% deposit is non refundable once the first hole is dug.
     

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