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Drought conditions and lawn care contracts


General Business Discussions

A place to talk about general business discussions.
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Old 07-06-2007, 04:28 PM
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How do you think your customers would react if you had them locked into a monthly contract to pay for lawn service that wasn't needed due to a drought?

Would you still enforce the contract?

how would you handle this?

Brown is cutting into the green of local businesses - Brown, brittle lawns are taking a toll on local lawn care businesses. Both mowing services and sod farmers say they've been directly impacted by some of the driest conditions in years.

"It's basically our bottom line right now," said Bob Kroth, owner of Parkway Lawn Service.

Kroth says brittle lawns means a break-even budget, at best.

"Our profit margin is around 12 percent to 15 percent, and if we're passing on 15 to 20 percent of our work, we're definitely losing on the bottom line as the end of the season comes near," he said.

The Minneapolis company is considering monthly contracts for customers in the future, committing customers to pay for their lawn service, regardless of the conditions.


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