Auto Renew agreement

Discussion in 'Business Operations' started by MICHPLOWER, Mar 8, 2011.


    MICHPLOWER LawnSite Member
    Messages: 98

    I am thinking of using this method "Auto renew agreements" to cut down on postage and paper, ink expenses every year, I was wondering if anybody uses this type of agreements and your opinion on them. also if any body could post theirs or pm me one, I am just in need of how to word the auto renew every year part.

    Thanks in advance for any help or input
  2. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    this is NOT always the best ideal.

    YOur talking about contracts right ?

    if so, you may need to raise your prices from year to year
  3. grassman177

    grassman177 LawnSite Fanatic
    Messages: 9,795

    we do this, but when we have to raise prices, we will have to have new contracts.

    no getting around that or really it is too complicated for lawn care .
  4. fireman gus

    fireman gus LawnSite Senior Member
    Messages: 517

    We have gone to this and it seems to work well. We have a clause in our Agreement Form stating that we will notify the clients of any change before the start of the new season. Our clients therefore know they can continue with us or cancel. If we don't hear back from them we continue as we have.
  5. lukemelo216

    lukemelo216 LawnSite Bronze Member
    from ...
    Messages: 1,267

    be sure to look up the laws regarding auto renew in your state. In WI its required by law that if we have an auto renew we are required to provide them with notification, which includes the length of contract, the amount, payment terms, etc.

    Our states this.........

    The initial term of this agreement will commence on April 1, 2011 and end on March 31, 2012, but the agreement will automatically renew for the following 12 months unless written notice of non-renewal is received by either party at least 30 days before the end of the current annual term.

    Like grassman said, if we adjust pricing for them, we cancel the old agreement and then supply them with a new agreement with the new pricing
  6. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Messages: 9,294

    I do auto renewal on both ferts and mowing. It is not part of my agreement, but I DO send notification both in the fall at the end of the season, then in the spring at the beginning of the following season, what the length of service will be, price, etc. So, there is plenty of notification, I think this is key. Otherwise, you run the risk of showing up at Grandma Lee's house and "Hey, I never renewed my service with you, get off my lawn!"

    I don't think I will ever go back to the old "reply for renewal requested". People just don't get back to you, then you are left, nervous, wondering if anyone is going to renew their service with you. Not worth the heartburn IMO. On the flip side, if you assume someone does not want service just because they they did not reply to you, you run the risk of "hey, why are you not coming out to do my lawn, you did it last year?"
  7. LawnsRUsInc.

    LawnsRUsInc. LawnSite Senior Member
    from midwest
    Messages: 916

    We have been wanting to do auto renewals but as others have stated the issue with prices for some clients raise. There has to be a smoother way for residential renewals. Its March 11th and we still have 350 clients to re sign up. I know large companies for snow removal and Fert that do auto renewals with even their commercial jobs.

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