Whats in your contract?

Discussion in 'Business Operations' started by WildWest, Aug 19, 2006.

  1. WildWest

    WildWest LawnSite Senior Member
    Posts: 384

    Does anyone/everyone have a "30 day notice to cancel" statement in your contract, or are they ONLY able to cancel after the term of the agreement (a year for most of us)

    Second, do any of you offer a discount for annual prepayment? Does anyone REALLY pay for a year in advance?
     
  2. WildWest

    WildWest LawnSite Senior Member
    Posts: 384

    Thanks mod! My apologies
     
  3. AAELI

    AAELI LawnSite Senior Member
    Posts: 362

    60 day notice for commercial customers.

    Some residentials prepay. Usually those who have a good grasp of their finances. They take advantage of our 3% discount for annual prepayment.

    We mow 52 weeks out of the year. No off season here.

    After 6 years and 4 different property managers on one commercial we received a 15 day notice from their financial dept. that our services were no longer needed. Upon a friendly reminder of the contract terms we agreed to stop upon full payment for the remaining 45 days unless of course they would rather have work performed in return for that payment. They opted for plan b after their lawyer read the contract terms to them.

    Seems that the new property manager had a cousin who just got in the business and needed a job. Ironic that both the manager and cousin on the new job were fired less than 6 months later.

    We declined to play the game anymore on that property.
     
  4. martinfan06

    martinfan06 LawnSite Senior Member
    Posts: 631

    If you didnt have a 30 notice cancelation in your contract I dont think any body would sign it "I wouldnt". Were talking lawn maintenance here not apt lease or cell phone service. People need to know they have outs if there not happy , your job is to make sure there always happy:) .
     
  5. stuffdeer

    stuffdeer LawnSite Bronze Member
    Posts: 1,557

    15 day written or called in notice
     
  6. HOOLIE

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    I offer 5% discount for prepays, normally have 2 or 3 per year. I actually had one customer leave an envelope with around $900 in CASH under the doormat...I guess they were very trusting. Too bad they moved.

    As far as cancellations, I prefer the easy come, easy go philosophy...and really I stand behind my work so I don't worry about people cancelling.
     
  7. beck

    beck LawnSite Senior Member
    Posts: 433

    we put a set term usually for 1 year on commercial contracts. if there is a problem with the service they must notify us and if we do not correct the problem within 30 days then they can get out of the contract.

    prepayment happens more with fert and weed control accounts it seems. it seems to vary between 3 and 7 percent discount. I was at a seminar where one company offered 10% and they had almost 50% of their customers prepay. so they cut their discount down to 5% and get about 30% prepay.
     

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