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 online now
Administrator
 
Join Date: May 2003
Posts: 35,740
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 online now
Senior Member
 
Join Date: Jan 2013
Posts: 167
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
leaf removal
tlf59263
04-15-2014 10:00 PM
Today 09:38 PM
by kslawn
3 113
this mower is driving me...
boog
Today 12:07 PM
Today 09:35 PM
by kslawn
1 49
REO calling
Dan Tanner
Yesterday 05:03 PM
Today 09:23 PM
by kslawn
7 151
Truck Signage
Dan Tanner
Yesterday 11:00 PM
Today 09:08 PM
by BelleCityLawn1
8 133
Help with weed liability!
Prolawnofchatt
04-15-2014 09:10 AM
Today 08:06 PM
by Prolawnofchatt
4 153
Pay per click advertising
roostertail
02-12-2014 07:26 PM
Today 07:11 PM
by yardrate
10 572
Looking for advice on a...
Tekeda1
04-13-2014 09:53 AM
Today 05:56 PM
by Tekeda1
15 296
What Fertilizer to Use?
acrajchel
04-07-2014 01:56 PM
Today 03:10 PM
by acrajchel
9 274
Instagram
Gerardo_Landscape
Yesterday 11:28 AM
Today 11:50 AM
by Steve
1 50
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
Yesterday 08:26 PM
by ExtremeLawncareServices
30 982
Nationwide lawn care...
Billy Goat
04-15-2014 05:21 PM
Yesterday 07:35 PM
by stevef1201
8 165
Accepting credit cards,...
Darksteel
03-17-2014 08:01 PM
Yesterday 01:02 PM
by jymie
15 685
Trimec
acrajchel
04-15-2014 08:24 PM
Yesterday 11:10 AM
by Steve
3 80
Gopher Forum Discount!
BlackRain75
04-12-2014 10:44 PM
Yesterday 10:50 AM
by Steve
9 239
hello
NFrailey
04-15-2014 01:39 PM
Yesterday 10:48 AM
by Steve
1 71
Any greenhouse operators...
GoGreenerKS
04-15-2014 11:21 AM
Yesterday 10:43 AM
by Steve
3 94
Pricing a Mulch Job
dmcalpi
04-07-2014 02:16 PM
Yesterday 09:40 AM
by jymie
21 567
google earth
CDLAWNCARE
04-12-2014 03:24 PM
Yesterday 09:36 AM
by jymie
8 198
There has to be an...
CDLAWNCARE
04-14-2014 12:59 PM
04-15-2014 04:06 PM
by Dan Tanner
6 149
First Day Back!
BelleCityLawn1
04-09-2014 09:13 PM
04-15-2014 11:16 AM
by Steve
11 284
Mow America
stevegredler
04-13-2014 01:02 PM
04-14-2014 09:53 PM
by kslawn
5 169
Power Broom
acrajchel
04-14-2014 07:46 AM
04-14-2014 12:47 PM
by CDLAWNCARE
2 88
Say Hello !!!
Steve
03-19-2007 11:18 AM
04-14-2014 11:34 AM
by Steve
1,176 284,464
Equipment reviews
Greg'slawnandlandscape
04-09-2014 07:17 AM
04-14-2014 11:27 AM
by Greg'slawnandlandscape
13 390
Sulky and Turf Tracer
acrajchel
04-07-2014 01:44 PM
04-14-2014 10:51 AM
by Steve
8 288
Aerating Prices?
Dan Tanner
04-08-2014 03:16 PM
04-14-2014 10:31 AM
by Steve
13 395
Estimating help
acrajchel
04-11-2014 06:06 PM
04-14-2014 10:20 AM
by Steve
3 148
Lawn Renovation
stevef1201
04-11-2014 12:00 PM
04-14-2014 10:03 AM
by Steve
5 166
Need help bidding church...
GreenRidge Lawn&Landscape
04-07-2014 08:01 PM
04-14-2014 09:49 AM
by Steve
12 379
Hello all
Griff20114
04-12-2014 05:08 PM
04-14-2014 09:46 AM
by Steve
1 95
Step by Step Spring Lawn...
WarriorLawnscaping
04-10-2014 07:01 AM
04-14-2014 09:43 AM
by Steve
5 205
Jeff Cowden
jcowden
04-11-2014 07:27 PM
04-14-2014 09:39 AM
by Steve
1 93
Exmark Commercial 30...
Dan Tanner
04-11-2014 05:35 AM
04-14-2014 09:37 AM
by Steve
4 167
What Was Your Setup When...
superrman77
02-11-2014 10:53 AM
04-14-2014 08:04 AM
by acrajchel
21 1,545
Small guy time to get a...
googus
04-08-2014 08:16 AM
04-13-2014 07:18 PM
by A. Kulak Landscaping
9 302
Weekly vs. Bi-weekly
CDLAWNCARE
04-12-2014 01:48 PM
04-13-2014 06:03 PM
by kslawn
9 306
Weed ID help
TwinBrosLC
04-12-2014 10:39 AM
04-13-2014 07:40 AM
by stevef1201
4 142
Lexington, KY
acrajchel
04-07-2014 01:06 PM
04-11-2014 09:49 PM
by acrajchel
1 119
Food Plot Management
BlackRain75
04-11-2014 10:20 AM
04-11-2014 03:51 PM
by Steve
4 121
Estimating a job
acrajchel
04-08-2014 11:07 AM
04-11-2014 03:32 PM
by Steve
6 270
New Boomless Sprayer!
BlackRain75
01-03-2014 01:01 PM
04-11-2014 03:25 PM
by Steve
11 990
Hello....
SWFloridaLawns
04-10-2014 06:15 PM
04-11-2014 02:28 PM
by Steve
2 117
Truck, Trailer,...
hawthornelawncare
12-23-2011 12:01 AM
04-10-2014 10:33 PM
by ExtremeLawncareServices
78 24,985
Trading Accounts
goodtimez
04-09-2014 05:42 PM
04-10-2014 01:55 PM
by Steve
2 148
Grass that has...
erock289
04-09-2014 10:21 AM
04-10-2014 01:52 PM
by Steve
3 160
Prowrap Trimmer Engine...
Steve
05-24-2006 07:05 PM
04-10-2014 01:09 PM
by Steve
10 2,193
1st annual Easter egg...
Greg'slawnandlandscape
04-09-2014 06:58 AM
04-10-2014 01:07 PM
by Steve
1 107
Hello everyone
aceslawnandgarden
04-03-2014 06:54 PM
04-10-2014 01:06 PM
by Steve
9 364
Weed control programs
Mallard91
04-02-2014 12:25 PM
04-10-2014 12:56 PM
by Steve
6 329
homeowner vs...
GoGreenerKS
04-07-2014 10:54 AM
04-10-2014 12:52 PM
by Steve
8 277
» Popular Tags
2wd 4x4 advertisement article marketing birdscaping blower care charge christmas light service collections subcontractor customers echo exmark fall ferris financing flower bed for sale four wheel drive franchise gopherhaul gravely gravely 34" zero turn health holiday holiday decorating how much to charge installation invoice labor cost late lawn lawn care lawn care business lawn care business show lawn clarksville lawn service clarksville tn leaf cleanup lesco llc marketing monthly mowing mulch mulch price new and restored landscapes new buisness new business office management oil podcast promotion redmax scag seo snow sole proprietorship starting a business stihl subcontractor taxes theft of services tips tree care unreasonable walk behind walker winter yard clarksville zero turn
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 10:42 PM.


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

All times are GMT -5. The time now is 10:42 PM.

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