Announcement

Collapse
No announcement yet.

Residential Contracts

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • #46
    If your just mowing, bill ahead or invoice after whatever fits you. 12 month payments arent for just mowing. But if you have a customer who has beds they don't take care of their self and always bug you with doing something that's when you try to perk their interest in a contract to do all the things and draw payment out over 12 months. Otherwise aren't doing much good for yourself drawing mowing payment out like that.
    Thanks for the information, if I decide to go with a contract I "MIGHT" (have to put that in there before "someone" freaks out) consider that, and I am well aware that a contract wouldn't be for just mowing and would include other services, but this still doesn't answer how you are going to explain monthly billing to a customer so they understand your billing method. I get doing your services and billing every month and all that wonderful stuff, but I'm looking deeper into this by figuring out how you explain this......

    Comment


    • #47
      ok I get it.

      First you have to figure out if the customer would even concider a contract. do they get alot of services from you... fertilizing, mowing, mulching, weeds and so on. if so continue reading.

      when they mention to you, doing something extra, this is a good time to bring up....

      this is my pitch line....

      Would you concider a yearly contract. What it is, is I basically add up all of the services you would request for the next 12 months, and instead of you paying for mulching at one time and coming a few hundred out of pocket, I am basically financing it out over 12 months so that I still recieve an income during months that are normally down time for me.

      We can build a custome package to include things that are custome fit for you, and you are not paying for services you do not want or need.

      The benefits of the contract are that your property is always professionaly maintained by us. It keeps you from having to spend your time off in the yard, and gives you more time with your family.

      Also, instead of paying our normal hourly rate, you get a discount of $10 per estimated hour for any services performed outside of the contract. You also get a discount on all services being performed in the contract, such as instead of paying $85per yard of mulch installed you will only be paying $75, and the cost is drawn out over 12 months.

      all in all you have to make sure your target customer is in the position to need this. If you go to a customer who doesnt need this, there going to sound intrigued until they hear the price then run you off thinking your trying to get over on them. My biggest luck with these contract is business owners. They love these contracts. They dont have time for yard crap, and whats $350 a month to someone who makes damn good money?

      Comment


      • #48
        ok I get it.

        First you have to figure out if the customer would even concider a contract. do they get alot of services from you... fertilizing, mowing, mulching, weeds and so on. if so continue reading.

        when they mention to you, doing something extra, this is a good time to bring up....

        this is my pitch line....

        Would you concider a yearly contract. What it is, is I basically add up all of the services you would request for the next 12 months, and instead of you paying for mulching at one time and coming a few hundred out of pocket, I am basically financing it out over 12 months so that I still recieve an income during months that are normally down time for me.

        We can build a custome package to include things that are custome fit for you, and you are not paying for services you do not want or need.

        The benefits of the contract are that your property is always professionaly maintained by us. It keeps you from having to spend your time off in the yard, and gives you more time with your family.

        Also, instead of paying our normal hourly rate, you get a discount of $10 per estimated hour for any services performed outside of the contract. You also get a discount on all services being performed in the contract, such as instead of paying $85per yard of mulch installed you will only be paying $75, and the cost is drawn out over 12 months.

        all in all you have to make sure your target customer is in the position to need this. If you go to a customer who doesnt need this, there going to sound intrigued until they hear the price then run you off thinking your trying to get over on them. My biggest luck with these contract is business owners. They love these contracts. They dont have time for yard crap, and whats $350 a month to someone who makes damn good money?
        Ok, forget the contract stuff, I'm not asking about the contract stuff. Let's go about it this way shall we? Maybe you'll see what I'm asking.....


        Customer: "Can you mow my grass?"

        Business Owner: "Of course I can."

        Customer: " How much would you charge me?"

        Business Owner: "Well for this size yard it'd be $40.00."

        Customer: "And can you explain how you bill?"


        Do you see what I'm looking for now?

        Comment


        • #49
          Well how are you planning to bill them?

          If its pay in advance, if your a big compaany its easy to say I require payment upfront.... what big business is going to run off with $100.

          Small guy, chances are someone isnt giving you $200 up front in good faith your not on drugs and running away with their money.

          ut you just tell people how you bill. I tell them "payment for first service is due at time of service after that, we will out on the 1st due by the 15th or bill on the 15th due on the 30th."

          bill me on the 15th <**- customer reply.

          ok your payment will be due by the 30th of each month.

          Then with their first invoice or customer packet you have a nice letter stating the following.

          Payments not made on time will incur a late fee of $30 and add another $15 for each week payment is late. If you cat afford your bill at the time its due for whatever reason, let me know a minimum of 7 days before its due, and we will re-evaluate your status as a customer of our company.

          Its easy. They have agreed to be your customer. but most people probably wont be handing you money upfront to start out. later down the road existing customers might, but not new customers. its hard to pull of unless your well established.

          Comment


          • #50
            Well how are you planning to bill them?

            If its pay in advance, if your a big compaany its easy to say I require payment upfront.... what big business is going to run off with $100.

            Small guy, chances are someone isnt giving you $200 up front in good faith your not on drugs and running away with their money.

            ut you just tell people how you bill. I tell them "payment for first service is due at time of service after that, we will out on the 1st due by the 15th or bill on the 15th due on the 30th."

            bill me on the 15th <**- customer reply.

            ok your payment will be due by the 30th of each month.

            Then with their first invoice or customer packet you have a nice letter stating the following.

            Payments not made on time will incur a late fee of $30 and add another $15 for each week payment is late. If you cat afford your bill at the time its due for whatever reason, let me know a minimum of 7 days before its due, and we will re-evaluate your status as a customer of our company.

            Its easy. They have agreed to be your customer. but most people probably wont be handing you money upfront to start out. later down the road existing customers might, but not new customers. its hard to pull of unless your well established.
            Finally we are getting somewhere, that takes care of input from SNethercutt LOL.......LawnBoy where are you, how do you go about doing this?

            Comment


            • #51
              Finally we are getting somewhere, that takes care of input from SNethercutt LOL.......LawnBoy where are you, how do you go about doing this?
              Here is how I do it, and I just did it again yesterday and it works.

              Customer: Can you mow my crap filled weed yard?
              Me: Of course!!!!!!! The charge is $40 per cut. How does that sound?
              Customer: Great! Its in the same ballpark as everyone else. How do you bill? Me: Our billing is very easy. We accept cash, check, debit/credit. I send bills out the first of every month to be paid by the 20th of the same month. For example, April 1st invoices go out (due April 20th) that cover May services. May invoices go out (due May 20th) for June services. At this point, the advance billing will click in their head!!! The reason we do this is so we can spend more time with our customers making sure things are done right. It's easier and our customers prefer it. It's no different than cell phone companies. But please keep in mind that your last invoice will be due October 20th, which is great because the holidays are coming up!

              I know Cheese and a few others on here can get customers to pay a few months in advance, I can't. Its a high cost living area and some people just don't have the cash to throw down up front. This is the best way for me....so far. I also like it because I get the warm and fuzzy in my stomach showing up to a job that I've already gotten paid for. Anything other than mowing that a customer wants done, I look at it from the money side. For example, I got a call yesterday from someone who wants their shrubs trimmed and small garden weeded. I told her I'll send her the bill of $100. This is the total cost of the job. She'll pay it before I do the job. Now, on the flip side, I have an aeration job I'm doing today, the total is $220. I told the guy 50% is due up front, then 50% is do upon completion. I figured that was fair so it'll give him time to come up with the money or whatever. I try to work with them!!! He asked if he could pay in full after I was done, I said yes of course. If you keep your billing simple, clear cut, and to the point, its easy. Even if they try to stiff you (if you bill out monthly after services are performed)......which brings me to.....

              Emails. Believe it or not, emails are considered mail. It is illegal to hack into someones email. Courts also count email as certified mail. I WILL TAKE NO JOB UNLESS APPROVED BY THE CUSTOMER IN AN EMAIL! Every quote I do is emailed to them with the details and scope of the work, as well as billing and the total. I never tell prices or quotes over the phone....it must be email.

              This is how I bill full service customers. To give me an upper hand on things, I don't bill them for 12 months. I only do the mowing season (for me, about 7 months). There are 2 reasons I do that....its very hard to collect any money in December, January and February (especially when they haven't even seen your face in a few months!). It also makes the customer feel like they are getting a deal. I break my price down into 7 month totals and bill the same price every month. But again, EMAIL THEM THE QUOTE!

              I don't do contracts (although they should be called agreements...). I never tell my customers I don't do them, but if they ask, I say " Well Sir, I don't do contracts because I want to earn your business every week." Little do they know when they confirmed my email, they entered an angreement. Bidding and quoting accounts are no good unless you can sell. But remember, the more you talk, the deeper the hole your digging for yourself. I was always taught to give your sales pitch THEN SHUT UP!

              Comment


              • #52
                GreenBlue,, I have a few billing options for my customers, after we go through the lawn & figure out what they want done, I explain to them that they have several options to choose from..they can either get billed at the end of each month (send out bill on last day of month & due by the 15th) or they can choose a monthly payment plan of which they will recieve a discount for doing so (the discount sells itself most times), if they choose the payment plan then the first payment is due on april 5th & I send out a simple "reminder of payment due" on the 20th of april for the may payment due on the 5th & so on & so on until the last billing for the season which in my case is october 5th...I go 7 months in summer & 5 months in winter but you can stretch the # of months out if you like to make it cheaper per month for your customer,but the service that you agree opon stays the same..the other option I have is for customers that have been with me for a year or longer is to pay ahead for the season ,but, you only want to take on so many of these & save as much as you can out of this for unexpected break downs etc; try & sell the monthly plans the most because you can budgit on what you have coming in every month...the up front I get is mostly for start-up costs & such..hope this helps!

                Comment

                Working...
                X