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: 36,207
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: 189
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
Need input on a bid
phlawncare
07-28-2014 08:51 PM
Today 06:40 AM
by kslawn
3 96
Spreading Weeds?
WesleySnips
07-27-2014 09:46 PM
Today 06:29 AM
by kslawn
5 130
Building credit
Matther777
07-27-2014 05:20 PM
Today 06:15 AM
by kslawn
9 167
Will summer ever come
ExtremeLawncareServices
Yesterday 08:27 AM
Yesterday 08:29 PM
by SGL1
5 84
Mow and leave cleanup bid
SGL1
Yesterday 07:28 PM
Yesterday 07:28 PM
by SGL1
0 35
Single tree, mow customer
WesleySnips
06-27-2014 10:12 AM
Yesterday 04:23 PM
by stevef1201
16 669
Formulas Used
BaileynSamsMum
Yesterday 06:40 AM
Yesterday 02:52 PM
by BaileynSamsMum
2 71
From Concord NC
SouthernRootsLawnCare
07-26-2014 02:34 PM
Yesterday 02:28 PM
by Steve
3 86
Have you ever had to...
SouthernRootsLawnCare
07-26-2014 02:41 PM
Yesterday 02:28 PM
by Steve
4 149
Echo Edger 'Neutral'
WesleySnips
07-25-2014 05:28 PM
Yesterday 02:25 PM
by Steve
4 139
New from Texas
Livingston Lawn Care
07-25-2014 11:17 AM
07-28-2014 01:29 PM
by Steve
3 143
Left handed edging with...
SGL1
07-23-2014 08:59 PM
07-28-2014 07:39 AM
by SGL1
15 340
Echo PE 266 edger
stevef1201
07-01-2014 01:28 PM
07-27-2014 10:14 PM
by WesleySnips
5 355
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
07-27-2014 01:21 PM
by ExtremeLawncareServices
80 4,689
Texas lawn care company...
Livingston Lawn Care
07-25-2014 11:29 AM
07-27-2014 08:16 AM
by Just for Cuts
7 197
need some help geting...
dalvan0
07-13-2014 09:28 PM
07-26-2014 04:39 PM
by BLC7
7 343
new trailer help
mattthelawnguy
07-11-2014 08:21 PM
07-25-2014 06:31 PM
by mattthelawnguy
13 522
You know it;s gonna be a...
stevef1201
07-25-2014 08:50 AM
07-25-2014 01:34 PM
by Steve
1 106
Customer letters
kslawn
07-23-2014 06:17 AM
07-25-2014 01:20 PM
by Steve
5 225
Got my first lawn job...
SGL1
06-11-2014 09:19 PM
07-24-2014 07:09 PM
by SGL1
29 1,299
Need help determining...
Jbss861
07-20-2014 02:33 PM
07-24-2014 01:11 PM
by Steve
13 411
Should I ?
googus
07-22-2014 04:06 PM
07-24-2014 12:10 PM
by Steve
4 244
My First Apartment...
SSLCtn
05-26-2014 10:17 PM
07-24-2014 06:46 AM
by kslawn
15 931
Crop Rotation Techniques...
eastsidelandcare
07-17-2014 03:47 PM
07-24-2014 06:38 AM
by kslawn
3 232
Selling lawns like...
eastsidelandcare
07-17-2014 03:51 PM
07-24-2014 06:28 AM
by kslawn
3 286
Scag new "Eliminator"......
ExtremeLawncareServices
07-20-2014 10:45 AM
07-23-2014 05:37 PM
by Just for Cuts
9 333
need professional advice...
Fiddlers_green
07-20-2014 07:21 PM
07-23-2014 12:42 PM
by Steve
3 230
new to me box truck
jrayb39667
03-06-2014 10:20 PM
07-23-2014 12:40 PM
by Steve
15 1,449
Lawn Service back in...
LawnCareMan280
07-18-2014 09:00 PM
07-23-2014 11:48 AM
by Steve
4 267
Overspray?
stevef1201
07-21-2014 04:20 PM
07-23-2014 11:39 AM
by Steve
3 175
Hello Everyone! Newbie...
SLKlawn
07-17-2014 06:22 PM
07-22-2014 01:53 PM
by Steve
6 308
Proper height for lawn
rob lederhilger
05-26-2014 08:01 AM
07-21-2014 02:53 PM
by LawnDoctor
9 682
Blade sharpener
Just for Cuts
07-04-2014 12:31 PM
07-21-2014 01:48 PM
by Steve
9 543
What's my business worth?
Chaz
07-16-2014 01:35 PM
07-21-2014 01:45 PM
by Steve
4 322
1.5 Acre Jungle
WesleySnips
07-15-2014 05:57 PM
07-20-2014 11:31 AM
by ExtremeLawncareServices
21 658
Gopher schedule software
Ray
07-18-2014 04:13 PM
07-18-2014 04:13 PM
by Ray
0 214
2006 Chevy fuel pump...
KevinsLawns
07-17-2014 08:39 PM
07-18-2014 11:51 AM
by Steve
1 210
Halfway point of year!
Steve
07-01-2014 12:08 PM
07-18-2014 11:38 AM
by Steve
14 771
I got told to leave and...
gwilson98
06-16-2014 02:07 PM
07-17-2014 11:43 AM
by Steve
16 1,092
Hey guys this is the...
prmenter@gmail.com
07-07-2014 08:23 PM
07-16-2014 08:10 PM
by ExtremeLawncareServices
28 818
Mowing the hills
prmenter@gmail.com
07-08-2014 12:22 PM
07-16-2014 05:00 PM
by Just for Cuts
18 742
Say Hello !!!
Steve
03-19-2007 11:18 AM
07-15-2014 05:38 PM
by icon2000
1,184 321,009
Classified Ad Template...
bcfb
06-05-2013 02:40 AM
07-15-2014 11:16 AM
by Steve
15 3,765
Husqvarna pz 60
CDLAWNCARE
07-06-2014 06:50 PM
07-15-2014 08:53 AM
by kslawn
10 485
Lowballers
Chaz
07-11-2014 03:55 PM
07-14-2014 12:27 PM
by Steve
5 393
My new side job
Sprinkler Buddy
05-10-2014 05:23 AM
07-14-2014 12:15 PM
by Steve
10 854
Illegal spraying
GoGreenerKS
07-04-2014 09:11 AM
07-13-2014 10:36 PM
by GoGreenerKS
10 589
New Mower and Trailer
Chaz
06-25-2014 12:04 PM
07-13-2014 06:25 PM
by SGL1
7 608
What Fertilizer to Use?
acrajchel
04-07-2014 01:56 PM
07-12-2014 07:36 PM
by SGL1
21 1,940
Fuel and fuel additives
SGL1
07-06-2014 10:23 AM
07-11-2014 07:53 PM
by SGL1
15 598
» Popular Tags
care charge christmas lighting christmas light service collections subcontractor courtesy call credit card processing customers decorating ecosymbiosis escrow exmark ferris four wheel drive fundraiser gopherhaul grass gravely gravely 34" zero turn hills holiday honda how much to charge how to bid hydraulic kawasaki lawn lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website lawn service leaf removal managing a lawn care business marketing mulch estimate native plants new buisness new mower office management online classifieds outdoor environments podcast push versus ride redmax reo rotating scag scag v-ride search engine optimization season seo snow sprayer starting a business starting a lawn care business steve stihl subcontractor tips toro tractor auger trailer mate pro turfgrass consulting walker winter money making ideas wright stander rh zero turn
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 07:56 AM.


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

All times are GMT -5. The time now is 07:56 AM.

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