1. Missed the live Ask the Expert event?
    Catch up on the conversation about fertilization strategies for success with the experts at Koch Turf & Ornamental in the Fertilizer Application forum.

    Dismiss Notice

Multi season commercial contracts? Offer any incentives?

Discussion in 'Business Operations' started by gardenpro, Jan 24, 2011.

  1. gardenpro

    gardenpro LawnSite Member
    from -
    Messages: 90

    It would be ideal to get customers on to 2-3 year contracts.

    I've been considering perks/incentives for the clients for several years but simply can't decide on perks that either don't shave earnings or be corny in some other way.

    Considered:
    -Throwing in flower bulbs displays (corny and unlikely to sway as most customers live out of town and have no idea what their landscape could use)
    -Holding prices rather than any increases (my employees get raises and gas is going up, so noway either).

    Any better ideas? Thanks.
     
  2. gardenpro

    gardenpro LawnSite Member
    from -
    Messages: 90

    I'm guessing this is something most landscapers aren't doing?
     
  3. johnsonslawnmanagement

    johnsonslawnmanagement LawnSite Senior Member
    Messages: 908

    I don't generally offer any incentives, other than holding prices or possibly a lower monthly payment (-$100-200 a year
    or less). All my commercial contracts are 2-3 and residentials
    are 2 year minimum. I started this last year and it has worked very well for me.
    I usually try to get a new contract on a 2year contract if it needs to be cleaned up. I'm not going to spend 12 months fixing sombodys mess just to hand over a clean account to the low bidder the next year.
    Posted via Mobile Device
     
  4. gardenpro

    gardenpro LawnSite Member
    from -
    Messages: 90

    That's exactly it.

    Many of the properties would not be swayed by $100-200 but it is a good idea.
     
  5. johnsonslawnmanagement

    johnsonslawnmanagement LawnSite Senior Member
    Messages: 908

    Well I Am very particular about my accounts, bordering on insainity. I have never had anyone say no when I presented a multiple-year contract.. Just do a fantastic job at everything you do and let your quality of work sell itself.
    Posted via Mobile Device
     
  6. gardenpro

    gardenpro LawnSite Member
    from -
    Messages: 90

    Actually some of these contracts I have had for 8 years. We do an awesome job.

    In this economic climate I would rather bind contracts into longer terms rather than assume things aren't going to change. Seems everyone with a truck becomes a landscaper in bad economies. And clients may be more open to experiment when they are half the hourly rate.
     
  7. gardenpro

    gardenpro LawnSite Member
    from -
    Messages: 90

    Anybody else able to add ideas- perks for accepting longer term contracts?
    Thanks.
     
  8. mountaineer

    mountaineer LawnSite Member
    from WA
    Messages: 30

    I think this is something worth revisiting. Do you have longer than one season contracts and if so how do you arrange it?
     

Share This Page