Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum

» Welcome to the Gopher Lawn Care Business Forum
GopherHaul Landscaping & Lawn Care Business Marketing Forum

GopherHaul Landscaping & Lawn Care Business Marketing Forum (http://www.gopherforum.com/forum-index.php)
-   General Talk (http://www.gopherforum.com/forumdisplay.php?f=21)
-   -   Residential Contracts (http://www.gopherforum.com/showthread.php?t=18422)

GreenBlue 04-02-2013 07:24 PM

Residential Contracts
 
We are considering using residential contracts to where customers can pay monthly for the entire year. The logic behind this is to make the customer think they are saving money instead of paying every week, but we are still making the same amount of money for the services, except we get payments during the winter months to help with still having an income coming in. I came up with this idea from the Lawn Business School on this website and reading an old post from a member who does this.

The object is to take the weekly amount times the estimated weeks we'll be actively mowing which is between roughly 32 weeks and then dividing that amount by 12 months (Example: $40.00 x 32 weeks = $1,280.00 divided by 12 months = $106.67 per month). I was wondering if anyone else has ever tried this, and also what others opinions on using this type of billing system is, and how could you explain the benefits of this type of contract to a customer?

warbuff 04-02-2013 09:28 PM

Quote:

Originally Posted by GreenBlue (Post 124770)
We are considering using residential contracts to where customers can pay monthly for the entire year. The logic behind this is to make the customer think they are saving money instead of paying every week, but we are still making the same amount of money for the services, except we get payments during the winter months to help with still having an income coming in. I came up with this idea from the Lawn Business School on this website and reading an old post from a member who does this.

The object is to take the weekly amount times the estimated weeks we'll be actively mowing which is between roughly 32 weeks and then dividing that amount by 12 months (Example: $40.00 x 32 weeks = $1,280.00 divided by 12 months = $106.67 per month). I was wondering if anyone else has ever tried this, and also what others opinions on using this type of billing system is, and how could you explain the benefits of this type of contract to a customer?


Might want to add in seasonal cleanups, pruning, edging, additional services they might require.

so for example:

Spring cleanup $150
fall Cleanup $200
Prunning $100
32 weeks mowing $1280
Total $1730
Don't forget tax rate in my state is 8.125% $140.56

total with tax 1870.56 / 12 = $155.88 monthly...

GreenBlue 04-02-2013 09:35 PM

Quote:

Originally Posted by warbuff (Post 124793)
Might want to add in seasonal cleanups, pruning, edging, additional services they might require.

so for example:

Spring cleanup $150
fall Cleanup $200
Prunning $100
32 weeks mowing $1280
Total $1730
Don't forget tax tax rate n my ate 8.125% $140.56

total with tax 1870.56 / 12 = $155.88 monthly...

Yeah we are going to add those services into the contract if they are interested in using them along with mowing, I just used the mowing price by itself as an example. I do thank you though for reminding me of this. I'm working on a contract right now, and will be uploading a sample of it within the next few days.

phouse65 04-02-2013 10:01 PM

we do that with customers that want multiple services. It gives them a chance to do all of the services that they want and be able to afford them. It is a good way to sell more than mowing and helps them and helps you for winter months. We have a section on that on our webpage (greatriverlawns.com) that shows customers what they can do. Good luck to you.

ratchetmaster2 04-02-2013 11:29 PM

The problem is that you're relying on credit. This can come back to bite big companies, and certainly small companies too. I'm not saying don't do it, but it's a risk. You run the risk of not getting paid.

Also, there's a psychological issue of being charged for something you aren't receiving...kind of. If I got a bill in January for lawn mowing, I would think "why am I paying for lawn mowing, when my lawn hasn't been mowed in months?"

You might want to just divide it over the 32 weeks, then offer the option of dividing it over 12 months of the customer asks. Personally, I hate being owed money by a client. Sometimes, they just don't pay, and there's not much you can do about it.

LawnBoy0311 04-03-2013 06:07 AM

Quote:

Originally Posted by ratchetmaster2 (Post 124818)
The problem is that you're relying on credit. This can come back to bite big companies, and certainly small companies too. I'm not saying don't do it, but it's a risk. You run the risk of not getting paid.

Also, there's a psychological issue of being charged for something you aren't receiving...kind of. If I got a bill in January for lawn mowing, I would think "why am I paying for lawn mowing, when my lawn hasn't been mowed in months?"

Bingo.

In the past I did monthly billing. It went well, but towards the end of the season, I ended up spending too much time trying to collect. When the year comes to an end, thats when all the major holidays are. Guess where the money is spent? X-Mas presents, traveling, etc.

Last month I picked up a full service account because of the season for your billing. She couldn't justify paying the $225 in January.

Maybe a signed contract will be much better. Who knows. It could be worth a shot though. I think you mentioned before this will be your first year....you may want to start off smaller and them attack at full speed. Advertising is a lot of work, the customers don't just all call at once when the weather gets nice. Getting into full service contracts your first year with no experience is a big risk.

Steve 04-03-2013 12:00 PM

Quote:

Last month I picked up a full service account because of the season for your billing. She couldn't justify paying the $225 in January.
How was that working out? Was she paying $225 per month to another company and she had, had it with paying per month like that? Or what? How did you differ to attract her?

BelleCityLawn1 04-03-2013 12:19 PM

The way I do it is each customer has 2 options. They can pay by the mow, or pay a certain monthly fee for the usually 8 months of mowing. For larger contracts I would consider the 12 month payment option but I would make sure to give each customer the option and write it all up in a contract. This way they can choose exactly what they want.

Thanks!

warbuff 04-03-2013 12:25 PM

Quote:

Originally Posted by ratchetmaster2 (Post 124818)
The problem is that you're relying on credit. This can come back to bite big companies, and certainly small companies too. I'm not saying don't do it, but it's a risk. You run the risk of not getting paid.

Also, there's a psychological issue of being charged for something you aren't receiving...kind of. If I got a bill in January for lawn mowing, I would think "why am I paying for lawn mowing, when my lawn hasn't been mowed in months?"

You might want to just divide it over the 32 weeks, then offer the option of dividing it over 12 months of the customer asks. Personally, I hate being owed money by a client. Sometimes, they just don't pay, and there's not much you can do about it.

I personally prefer to only offer a contract like this to a commercial client but, if I were to offer this to a residential client it would have to be under contract and be a client I've had a long term relationship so payment wouldn't be an issue.

LawnBoy0311 04-03-2013 12:42 PM

Quote:

Originally Posted by Steve (Post 124868)
How was that working out? Was she paying $225 per month to another company and she had, had it with paying per month like that? Or what? How did you differ to attract her?

I estimated a cost for me to do it, but before I gave it to her, I asked her what she was paying. She told me $225. I gave her my price which was higher, and said I only charge for 7 months of service. I explained to her she'd save "X" amount of $$ and she was very happy with it. I was happy too because I got more than what I estimated.

She says the other guy was doing lousy work and charging too much, so if I do good, she has friends in the neighborhood that will change....I'll only believe that when I get the calls.

So far so good!


All times are GMT -5. The time now is 02:15 AM.

Powered by vBulletin® Version 3.7.1
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
(C) 2011 Riggs Publications - Terms of use & Privacy Policy

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
new to the forum
SGlawncare
Yesterday 11:20 PM
Yesterday 11:20 PM
by SGlawncare
0 13
Non-Stop Summer?
SouthallMowing
09-14-2014 10:51 PM
Yesterday 11:09 PM
by SouthallMowing
4 169
Tribulations of working...
stevef1201
09-13-2014 08:37 AM
Yesterday 10:43 PM
by SGL1
6 274
Lowballers scrubs &...
Darksteel
01-13-2014 07:35 AM
Yesterday 04:49 PM
by stevef1201
55 6,471
Poll - net income
Dan5082
11-15-2010 08:08 PM
Yesterday 04:44 PM
by jrs.landscaping
12 3,059
Price to apply fertilizer
SS.Lawncare
09-15-2014 11:10 AM
Yesterday 04:31 PM
by jrs.landscaping
5 147
Help With Snow Blowing...
Robertf31
09-13-2014 10:55 PM
Yesterday 02:33 PM
by Robertf31
10 359
Getting lowballed!
PineHillLawn
06-27-2012 07:23 AM
Yesterday 01:25 PM
by jrs.landscaping
24 4,719
snowplowing
jshak40
09-01-2014 07:20 AM
Yesterday 01:16 PM
by Steve
21 1,152
Compare this summer to...
Steve
09-03-2014 12:52 PM
Yesterday 11:20 AM
by Hanks Lawn Care Services
15 958
thinking about throwing...
veteranslawncaresystems
09-09-2014 10:31 PM
09-15-2014 03:41 PM
by Steve
12 649
Hello
Robertf31
09-12-2014 10:34 PM
09-15-2014 03:17 PM
by Steve
2 267
Newbie......Again
Jibber
09-13-2014 12:17 PM
09-15-2014 02:54 PM
by Sprinkler Buddy
2 235
Replacing a Shindi T-27
Dan Tanner
09-13-2014 12:59 PM
09-15-2014 02:31 PM
by Steve
1 203
need help with starter...
GoGreenerKS
09-12-2014 04:23 PM
09-15-2014 02:25 PM
by Steve
3 281
Brake job!
kslawn
08-30-2014 07:49 AM
09-15-2014 02:16 PM
by Steve
12 968
Hello
jawnebgoode
08-28-2014 08:37 PM
09-15-2014 02:15 PM
by Steve
3 758
Employee uniforms
Gerardo_Landscape
01-21-2014 11:11 PM
09-15-2014 02:12 PM
by Steve
5 877
Greetings from the north
Northwoods Outdoors
09-13-2014 08:55 AM
09-15-2014 02:07 PM
by Steve
1 219
darleneh
darleneh
09-15-2014 12:33 PM
09-15-2014 02:07 PM
by Sprinkler Buddy
1 95
My 1st bid
WesleySnips
06-11-2014 03:13 PM
09-15-2014 02:05 PM
by Steve
29 1,665
New Aerator
Chaz
09-09-2014 11:43 PM
09-15-2014 01:50 PM
by Steve
9 490
Yearly contract Pricing
jrob0691
08-21-2014 08:57 AM
09-15-2014 01:23 PM
by stevef1201
8 1,140
Scag turf tiger hydrolic...
ExtremeLawncareServices
09-04-2014 10:55 PM
09-14-2014 03:06 PM
by ExtremeLawncareServices
8 667
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
09-13-2014 09:14 PM
by ExtremeLawncareServices
116 7,854
getting ready to start
calebmoss
05-23-2011 09:35 PM
09-11-2014 12:21 PM
by Steve
34 11,148
Stihl pull cord replace
SGL1
09-03-2014 09:22 PM
09-10-2014 12:25 PM
by Steve
9 685
Softball field
kslawn
08-15-2014 09:28 AM
09-10-2014 12:16 PM
by Steve
18 1,404
Lawn Route Templates
Landscaper1165
08-30-2014 01:52 PM
09-09-2014 08:05 PM
by Landscaper1165
4 890
New truck and trailer...
Johnny Rocket
05-14-2012 03:41 PM
09-09-2014 07:23 PM
by Matther777
18 6,485
What gets you bad press?
Steve
09-09-2014 11:48 AM
09-09-2014 07:21 PM
by Matther777
2 394
Signs on your snow plow?
Steve
01-15-2007 01:07 AM
09-09-2014 11:42 AM
by Steve
19 6,130
Exmark Lazer Z S-Series...
BLC7
08-22-2014 10:18 AM
09-08-2014 08:08 PM
by avetslawncare
12 1,185
New to the business
flamingyouth87
09-05-2014 11:52 AM
09-08-2014 11:55 AM
by Steve
3 592
Hello from Ohio
kurtwin
08-28-2014 05:06 PM
09-08-2014 11:51 AM
by Steve
7 872
Facebook
element009
03-23-2011 08:36 AM
09-07-2014 07:35 AM
by avetslawncare
24 7,655
Help pricing cut down 7...
Bradcook21
08-26-2014 11:17 PM
09-06-2014 02:09 PM
by Bradcook21
8 950
billing matters
sbuchanan8154
09-05-2014 09:56 AM
09-05-2014 03:00 PM
by Steve
3 568
Thoughts
googus
09-05-2014 07:28 AM
09-05-2014 02:23 PM
by Steve
2 525
Backflow Tester
flowcheckllc.2014
09-03-2014 04:37 PM
09-05-2014 02:15 PM
by Steve
3 606
Collections & collection...
jscarolina
09-03-2014 04:39 PM
09-04-2014 03:14 PM
by Steve
2 628
Sod
RosalesLawnCare
08-27-2014 03:47 PM
09-04-2014 02:42 PM
by RosalesLawnCare
4 876
Lawn needs top soil What...
jymie
08-26-2014 11:01 AM
09-03-2014 12:07 PM
by Steve
7 949
Hello! New here and...
CaliforniaFriendly
08-29-2014 11:30 AM
09-03-2014 11:15 AM
by Steve
4 851
Trailer tires
J.A.S.LawnService
09-01-2014 10:17 AM
09-02-2014 03:27 PM
by Steve
3 763
Mowing 7 acres
avetslawncare
08-31-2014 04:24 PM
09-02-2014 03:11 PM
by Steve
5 839
New to the industry-...
Lsmain
08-31-2014 10:53 AM
09-02-2014 02:58 PM
by Steve
1 762
Walk Behinds and Texas...
SGL1
08-26-2014 03:53 PM
09-01-2014 11:36 PM
by SGL1
7 951
Stihl engine isn't...
Marcintosh
08-12-2014 08:30 PM
08-28-2014 09:28 PM
by Marcintosh
12 1,251
Say Hello !!!
Steve
03-19-2007 11:18 AM
08-27-2014 08:33 PM
by kurtwin
1,187 333,947
Read more about these lawn care business marketing categories.
General Business:
GopherHaul, Podcast
How to Estimate - Services To Offer:
Aeration, Apartment / Condo, bed edging, Color Change Plantings, Dethatching, Edging, Fall Leaf Cleanups, Foreclosed Homes, Gutter Cleaning, Hardscaping, Hedge Trimming, Home Safety Inspection, Irrigation, Landscape Project, Lawn Mower Repair, Mowing, Mulch Jobs, Outdoor decoration, Parking Lot Cleanups, Pet Waste Removal, Pressure Washing, Property Management, Snow plowing, Stump Grinding, Tree Removal
How to Estimate Jobs:
Lawn Care Business:
Barter, Bikini Lawn Care, Business Failure, Business loan, Business Plan, Debt, Debt Collection, Estimate or Proposal Form, Franchise, Fuel surcharge, How to sell, Insurance, Job Tracking, Lawn Care Contract, Lawn Care Customer Survey, Lawn Care Uniform, Lawn Care Videos, Operational Costs, Overhead Costs, Prepay, Pricing, Start up, Tiger Time Lawn Care,
Lawn Care Business Books:
Lawn Care Customers:
Buying customers, Commercial Customers, Customer Retention, How to get, Residential Customers
Lawn Care Employees:
1 Man Lawn Crew, Bonus Pay, training, Your First Employee
lawn care equipment:
bed edger, Lawn Care Truck, Leaf Sweeper, Mower, New Arrival, Trailer, UltraVac
Lawn Care Marketing:
Billboard, Brochure, Business Card, Community Projects To Promote Your Business, Coupons, Cross Promotion / Synergy, Direct Mail, Door hanger, door to door, Free Giveaway Contest, Free Lawn Care Flyer Template, Gift or Discount Cards, home show, Internet, Lawn Care Business Sales Letter, Lawn Care Logo, Lawn Care Marketing, Lawn Care Truck & Trailer Signs, Lawn Care Website, Lawn Signs, Magazine Ad, Magnets, Mailing list, Marketing on Craigslist.com, Newspaper Ads, Parade, Postcards, publicity stunt, Referrals, Review My Lawn Care Marketing Material, t-shirt, Welcoming Kit, Word Of Mouth
Seasonal Promotion Ideas:
4th of July, Armed Forces Day, Christmas, Election Day, Fall, Halloween, Memorial Day, Spring, Summer, Valentine's Day, Veteran's Day, Winter:
Software:
Estimation Software, Landscaper Software, Landscaping Business Software, Landscaping Estimate Software, Landscaping Software, Lawn Care Business Software, Lawn Care Estimating Software, Lawn Care Software, Mowing Software
Uncategorized:
Video:
Website:
Search Engine Optimization
» Lawn Care Business Discussion Categories
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 02:15 AM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 02:15 AM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy