1. Can’t make it to the GIE+EXPO 2017?
    LawnSite brings the trade show floor to your fingertips with our new GIE+EXPO 2017 Sneak Peek video series debuting now in the Lawn Mowing forum.

    Dismiss Notice

Yearly Contracts?

Discussion in 'Lawn Mowing' started by RwADesigner, Nov 5, 2002.

Thread Status:
Not open for further replies.
  1. RwADesigner

    RwADesigner LawnSite Member
    Messages: 107


    I have searched for threads on this subject and read them, but i still have some questions about yearly maintenance contracts.

    We havent branched off into lawn maintenance yet, and I really want to research this subject more from a owners standpoint before I actually dive into it.

    What are the top selling options in yearly Lawn Maintenance contracts?

    Are yearly contracts the way to go?

    What services do you not include in yearly contracts?

    Do you have packages available?

    I have seen on these sites over and over the past year........how people say that residential clients is the way to go. When i am doin my math, I really see that you have to have high quantity to make a good income. After I figured in Overhead/Employees/Equipment/Insurance/etc... I found that you really have to have a good bit of clients to put a dent into the bank account.

    All Information is welcomed and appreciated
  2. Green Pastures

    Green Pastures LawnSite Silver Member
    Messages: 2,457

    The selling points are............

    It's $5000 a year to maintain your grounds Mr. Jeeves, if you sign an annual contract. This means you make 12 equal monthly payments of $416.67 as opposed to only paying me during the 9 month active growing season (or a seasonal contract) which would make your 9 equal monthly payments $611.11. I also slip in there somewhere that is very helpful to me as their contractor to know how much income I will have every month all year. It helps me stay in business to continue providing the quality service you've grown accustom to.......... Plus I give annual contract pricing deeper discounts than I do seasonal (or 9 month) contracts. blah, blah, yadda, yadda.

    Another way I justify annual contracts is that I offer every service inclusive....mowing, hedge trimming, fert, aeration, weed control, leaf cleanup, fall color plantings, etc. I make it so that all they have to do for their yard maintenance is "cut" a monthly check, they "cut" nothing else.

    Yearly contracts have been the way to go for ME, you may be different. I like knowing exactly the minimum I will be collecting EVERY month.

    I include every service the customer needs/wants that I can provide.

    NO PACKAGES, this is the way the consumer tries to talk you down in price. I explain to them that I've already taken into account that they are gracious enough to be willing to sign a contract and that I give them pricing accordingly. Contracted customers get a few cents off here and there as opposed to customers who might only call me once or twice a year.

    I did give one residential annually contracted customer a 5% discount off the total annual contract price because he was willing to pay 100% up front. I do not however think I'll do that again, I really like that monthly check, and that singly payment did go to the purchase of a new mower. I could have paid that new mower off in 90 days regardless.

    If I can answer any other questions you might have feel free to e-mail me or P.M. me here. I would like to help you feel as comfortable with your decision as possible. Hope this helped.
Thread Status:
Not open for further replies.

Share This Page