Multi-year contracts / sample contract

Discussion in 'Business Operations' started by Grass887, Oct 13, 2010.

  1. Grass887

    Grass887 LawnSite Member
    Messages: 46

    I know from searching this isn't everyones favorite topic to chime in on, but its something im looking into starting this year. I have 3 decent sized accounts and I'd like to lock them in on a 3 year seasonal contract, so far from what I've read, a 2.5% is fine on the 3rd year.
    How do you SELL a 3 year contract? What can you entice the customer with?

    Second, Does anyone have an outline or a sample contract they'd like to share for multi-year contracts?

  2. Agape

    Agape LawnSite Bronze Member
    Messages: 1,644

    one idea is: locked rates for three years guaranteed in this unstable economy- tell them you have to raise their rates as does everyone else, but you want to honor their loyalty and can lock their current rate.... yada yada...I have not done this, its just an idea.
    try for 3 months down to do this? you never know.
  3. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    WOW a 3 year contract. I would NOT do this.

    as you remember it was about 2 yrs ago that fuel went up to 370-400 per gallon.

    I would advise against this
  4. Grass887

    Grass887 LawnSite Member
    Messages: 46

    Its less than an acre, so the gallon of gas I use to mow it, really isn't that big of a deal. Add it the trimmers, edger, your still talkin a couple dollars.
    I wouldn't go signing a multi-acre property on a 3 year contract unless there was a gas price clause in there somewhere.
  5. mr.q

    mr.q LawnSite Member
    Messages: 105

    Write up a voidable contract
  6. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    No one knows what tomorrow brings, I'm only 50 yrs old. have done many things, if anyone approched me with a 3 year contract for lawn care.
    I would RUN from it.

    again. I advise against it
  7. weeble67

    weeble67 LawnSite Senior Member
    Messages: 286

    I gotta agree with Bohiaa, I stick with my annual contracts. March to March, every year. It works great for me. I have had most of my customer for years, and they are very happy but if I approached them with a 3 year contact they would cringe.

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