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 > Lawn Care, Landscaping, and Property Management Forums > General Talk

General Talk If it doesn't fit anywhere else, post it here.

Residential Contracts


General Talk

If it doesn't fit anywhere else, post it here.
Reply
 
Thread Tools Search this Thread
  #1  
Old 04-02-2013, 07:24 PM
GreenBlue's Avatar
GreenBlue GreenBlue is offline
Senior Member
 
Join Date: Feb 2013
Location: Kansas
Posts: 248
Rep Power: 2
GreenBlue is on a distinguished road
Default 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?
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 04-02-2013, 09:28 PM
warbuff's Avatar
warbuff warbuff is offline
Member
 
Join Date: Feb 2010
Location: Poughkeepsie, NY
Posts: 67
Rep Power: 5
warbuff is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
Quote:
Originally Posted by GreenBlue View Post
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...
__________________

Clean, Quality Maintenance Services that Exceed Your Expectations.
Find Us On Facebook: ML Landscaping Poughkeepsie NY
Chance Favors the Prepared Mind...

Last edited by warbuff; 04-02-2013 at 09:34 PM.
Reply With Quote
  #3  
Old 04-02-2013, 09:35 PM
GreenBlue's Avatar
GreenBlue GreenBlue is offline
Senior Member
 
Join Date: Feb 2013
Location: Kansas
Posts: 248
Rep Power: 2
GreenBlue is on a distinguished road
Default

Quote:
Originally Posted by warbuff View Post
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.
Reply With Quote
  #4  
Old 04-02-2013, 10:01 PM
phouse65 phouse65 is offline
Member
 
Join Date: Mar 2011
Location: Canton, OHIO
Posts: 35
Rep Power: 4
phouse65 is on a distinguished road
Default

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.
Reply With Quote
  #5  
Old 04-02-2013, 11:29 PM
ratchetmaster2 ratchetmaster2 is offline
Senior Member
 
Join Date: Mar 2012
Posts: 185
Rep Power: 3
ratchetmaster2 is on a distinguished road
Default

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.
Reply With Quote
  #6  
Old 04-03-2013, 06:07 AM
LawnBoy0311 LawnBoy0311 is offline
new member
 
Join Date: Jun 2012
Location: East Coast
Posts: 1,169
Rep Power: 0
LawnBoy0311 is on a distinguished road
Default

Quote:
Originally Posted by ratchetmaster2 View Post
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.
Reply With Quote
  #7  
Old 04-03-2013, 12:00 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 35,771
Rep Power: 10
Steve has disabled reputation
Default

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?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #8  
Old 04-03-2013, 12:19 PM
BelleCityLawn1's Avatar
BelleCityLawn1 BelleCityLawn1 is offline
Senior Member
 
Join Date: Jan 2013
Posts: 171
Rep Power: 2
BelleCityLawn1 is on a distinguished road
Default

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!
Reply With Quote
  #9  
Old 04-03-2013, 12:25 PM
warbuff's Avatar
warbuff warbuff is offline
Member
 
Join Date: Feb 2010
Location: Poughkeepsie, NY
Posts: 67
Rep Power: 5
warbuff is on a distinguished road
Default

Quote:
Originally Posted by ratchetmaster2 View Post
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.
__________________

Clean, Quality Maintenance Services that Exceed Your Expectations.
Find Us On Facebook: ML Landscaping Poughkeepsie NY
Chance Favors the Prepared Mind...
Reply With Quote
  #10  
Old 04-03-2013, 12:42 PM
LawnBoy0311 LawnBoy0311 is offline
new member
 
Join Date: Jun 2012
Location: East Coast
Posts: 1,169
Rep Power: 0
LawnBoy0311 is on a distinguished road
Default

Quote:
Originally Posted by Steve View Post
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!
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
3/4 Acre Residential lxarth Online Lawn Care Estimator - Help me bid this job 16 06-25-2012 05:03 PM
Residential or Commercial??? mortonslawn Starting a lawn care business. 10 10-26-2010 06:07 PM
commercial vs residential Floridajoe Lawn Maintenance / Lawn Renovation 18 06-05-2010 01:24 AM
My area is FULL of residential! Travor Starting a lawn care business. 14 08-10-2009 01:48 PM
Commercial vs. Residential musician/lawnman General Business Discussions 40 07-04-2008 07:54 AM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Pond...
xandrew245x
04-22-2014 03:29 PM
Today 05:57 AM
by Greg'slawnandlandscape
4 99
Mangwi Landscaping
bondservojc13
Yesterday 09:56 PM
Today 05:41 AM
by Sprinkler Buddy
1 53
Pushy customers
christopherhicks82
04-22-2014 08:22 PM
Today 04:56 AM
by Dan Tanner
6 155
In a bit situation need...
googus
04-22-2014 08:01 AM
Yesterday 10:03 PM
by googus
9 175
Acerage Rake
acrajchel
Yesterday 07:23 PM
Yesterday 07:23 PM
by acrajchel
0 35
2.5 acre mowing
xandrew245x
04-18-2014 06:55 AM
Yesterday 07:11 PM
by acrajchel
15 346
New Trailer
bobwill2009
Yesterday 12:46 PM
Yesterday 06:46 PM
by BelleCityLawn1
2 76
Advertising On...
JacobsLawnMowing
03-17-2014 03:21 PM
Yesterday 06:02 PM
by bobwill2009
13 878
Any greenhouse operators...
GoGreenerKS
04-15-2014 11:21 AM
Yesterday 12:37 PM
by Steve
7 221
Truck, Trailer,...
hawthornelawncare
12-23-2011 12:01 AM
Yesterday 12:17 PM
by bobwill2009
79 25,348
The $20 Mow Job
Dan Tanner
04-21-2014 07:24 PM
Yesterday 12:06 PM
by Steve
5 198
quickbooks users
CDLAWNCARE
04-20-2014 09:03 AM
Yesterday 06:48 AM
by CDLAWNCARE
4 177
Looking for advice on a...
Tekeda1
04-13-2014 09:53 AM
04-22-2014 07:55 PM
by Just for Cuts
23 585
About D@## Time!
TamMik
04-02-2014 08:10 AM
04-22-2014 05:14 PM
by BelleCityLawn1
19 872
Back for this year
xandrew245x
02-21-2014 04:30 PM
04-22-2014 03:36 PM
by xandrew245x
19 1,011
What Was Your Setup When...
superrman77
02-11-2014 10:53 AM
04-22-2014 12:29 AM
by Tony317
22 1,722
Sulky and Turf Tracer
acrajchel
04-07-2014 01:44 PM
04-22-2014 12:07 AM
by Tony317
9 448
danny 2
danny2
04-19-2014 10:19 PM
04-21-2014 12:25 PM
by Steve
3 138
this mower is driving me...
boog
04-17-2014 12:07 PM
04-21-2014 12:10 PM
by kslawn
13 365
What Fertilizer to Use?
acrajchel
04-07-2014 01:56 PM
04-21-2014 12:02 PM
by kslawn
20 611
I Got Taken...,
Dan Tanner
04-19-2014 06:26 AM
04-21-2014 11:49 AM
by Steve
4 233
new to this forum!
mower13126
04-18-2014 07:37 PM
04-21-2014 11:39 AM
by Steve
4 150
REO calling
Dan Tanner
04-16-2014 05:03 PM
04-21-2014 11:33 AM
by Steve
12 351
employee pay
4 seasons maintenance
04-10-2011 09:34 PM
04-20-2014 04:40 PM
by Dan Tanner
20 6,890
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
04-20-2014 11:13 AM
by ExtremeLawncareServices
32 1,217
Lawn Renovation
stevef1201
04-11-2014 12:00 PM
04-20-2014 11:11 AM
by kslawn
10 368
Customers droping like...
goodtimez
04-18-2014 09:53 AM
04-19-2014 08:09 AM
by CDLAWNCARE
7 232
Best Bulk Mulch delivery...
Steven Virgadamo
04-18-2014 09:52 AM
04-18-2014 05:34 PM
by Steve
2 106
Steve Virgadamo,...
Steven Virgadamo
04-18-2014 09:49 AM
04-18-2014 05:08 PM
by Steve
2 90
Instagram
Gerardo_Landscape
04-16-2014 11:28 AM
04-18-2014 04:51 PM
by Steve
3 189
Help with weed liability!
Prolawnofchatt
04-15-2014 09:10 AM
04-18-2014 04:47 PM
by Steve
5 248
Nationwide lawn care...
Billy Goat
04-15-2014 05:21 PM
04-18-2014 04:39 PM
by Steve
9 268
Truck Signage
Dan Tanner
04-16-2014 11:00 PM
04-18-2014 04:04 PM
by stevef1201
10 290
leaf removal
tlf59263
04-15-2014 10:00 PM
04-18-2014 03:59 PM
by stevef1201
6 239
Pay per click advertising
roostertail
02-12-2014 07:26 PM
04-17-2014 07:11 PM
by yardrate
10 641
Accepting credit cards,...
Darksteel
03-17-2014 08:01 PM
04-16-2014 01:02 PM
by jymie
15 807
Trimec
acrajchel
04-15-2014 08:24 PM
04-16-2014 11:10 AM
by Steve
3 151
Gopher Forum Discount!
BlackRain75
04-12-2014 10:44 PM
04-16-2014 10:50 AM
by Steve
9 349
hello
NFrailey
04-15-2014 01:39 PM
04-16-2014 10:48 AM
by Steve
1 133
Pricing a Mulch Job
dmcalpi
04-07-2014 02:16 PM
04-16-2014 09:40 AM
by jymie
21 794
google earth
CDLAWNCARE
04-12-2014 03:24 PM
04-16-2014 09:36 AM
by jymie
8 297
There has to be an...
CDLAWNCARE
04-14-2014 12:59 PM
04-15-2014 04:06 PM
by Dan Tanner
6 236
First Day Back!
BelleCityLawn1
04-09-2014 09:13 PM
04-15-2014 11:16 AM
by Steve
11 372
Mow America
stevegredler
04-13-2014 01:02 PM
04-14-2014 09:53 PM
by kslawn
5 277
Power Broom
acrajchel
04-14-2014 07:46 AM
04-14-2014 12:47 PM
by CDLAWNCARE
2 156
Say Hello !!!
Steve
03-19-2007 11:18 AM
04-14-2014 11:34 AM
by Steve
1,176 286,901
Equipment reviews
Greg'slawnandlandscape
04-09-2014 07:17 AM
04-14-2014 11:27 AM
by Greg'slawnandlandscape
13 533
Aerating Prices?
Dan Tanner
04-08-2014 03:16 PM
04-14-2014 10:31 AM
by Steve
13 540
Estimating help
acrajchel
04-11-2014 06:06 PM
04-14-2014 10:20 AM
by Steve
3 243
Need help bidding church...
GreenRidge Lawn&Landscape
04-07-2014 08:01 PM
04-14-2014 09:49 AM
by Steve
12 502
» Popular Tags
2wd 34'' advertisement birdscaping buy charge christmas christmas lighting client collections subcontractor color jet credit card processing customers ecosymbiosis escrow exmark ferris flower bed for sale fundraiser georgia gopherhaul gravely holiday holiday decorating honda how much to charge how to bid installation kawasaki lawn care lawn care business podcast lawn care business show lawn service lawn service clarksville tn leaf cleanup leaf removal lighting brass outdoor lights marketing mowing mulch mulch estimate native plants new buisness new business oil online classifieds organize outdoor environments payday podcast redmax rotating savannah scag season seo social media sprayer starting a business stihl taxes theft of services tips truck unreasonable walk behind walker winter winter services
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 10:17 AM.


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

All times are GMT -5. The time now is 10:17 AM.

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