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, 08:24 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, 10:28 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 10:34 PM.
Reply With Quote
  #3  
Old 04-02-2013, 10:35 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, 11:01 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 04-03-2013, 12:29 AM
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, 07:07 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, 01:00 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,603
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, 01:19 PM
BelleCityLawn1's Avatar
BelleCityLawn1 BelleCityLawn1 is offline
Senior Member
 
Join Date: Jan 2013
Posts: 192
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, 01:25 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, 01:42 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 06:03 PM
Residential or Commercial??? mortonslawn Starting a lawn care business. 10 10-26-2010 07:07 PM
commercial vs residential Floridajoe Lawn Maintenance / Lawn Renovation 18 06-05-2010 02:24 AM
My area is FULL of residential! Travor Starting a lawn care business. 14 08-10-2009 02:48 PM
Commercial vs. Residential musician/lawnman General Business Discussions 40 07-04-2008 08:54 AM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
leaf removal
Double J LLC
10-03-2014 05:24 PM
Today 01:08 AM
by ExtremeLawncareServices
25 2,509
Hello from Kentucky
TRV
09-30-2014 06:42 PM
Yesterday 07:45 PM
by TRV
8 1,336
These are the days on...
ExtremeLawncareServices
03-22-2014 10:12 AM
Yesterday 07:00 PM
by ExtremeLawncareServices
176 14,141
Hi from IL
steveinil
Yesterday 02:07 PM
Yesterday 02:07 PM
by steveinil
0 31
WNY saying Hi.
Sargewesser
Yesterday 07:27 AM
Yesterday 07:27 AM
by Sargewesser
0 35
Group Buying Software as...
ferona
Yesterday 06:49 AM
Yesterday 06:49 AM
by ferona
0 38
How to: Use Thumbtack...
acrajchel
11-17-2014 06:39 PM
11-24-2014 07:58 PM
by thom
17 584
How much do you up sell...
Essex Groundskeeping
11-23-2014 07:13 PM
11-24-2014 06:29 PM
by stevef1201
8 192
This sucks...
Matther777
09-18-2014 05:56 PM
11-24-2014 05:49 PM
by biglee
16 3,218
Pressure Washing...
WesleySnips
07-31-2014 07:13 PM
11-24-2014 04:32 PM
by acrajchel
4 672
New website
Chilehead
11-20-2014 04:39 PM
11-23-2014 07:40 PM
by Just for Cuts
12 317
My site is on fronts page
tbtigers03
11-14-2014 05:58 PM
11-22-2014 10:49 PM
by Just for Cuts
16 541
Pics for website
tbtigers03
11-21-2014 05:40 PM
11-22-2014 10:01 PM
by Just for Cuts
3 172
Peco Bagger
AGPS
11-18-2014 02:20 PM
11-22-2014 05:56 PM
by AGPS
9 350
Beginner Mistakes:...
Steve
01-31-2007 12:45 PM
11-22-2014 02:42 PM
by stevef1201
22 6,212
Contract or no contract?
TRV
11-20-2014 09:18 PM
11-21-2014 09:33 PM
by TRV
3 208
Hi to you NOTHERNERS
stevef1201
11-11-2014 05:56 PM
11-21-2014 08:02 PM
by stevef1201
4 360
Billboards for marketing
ExtremeLawncareServices
11-16-2014 08:39 PM
11-21-2014 07:05 PM
by acrajchel
13 424
Belt dealer problem
googus
11-21-2014 08:45 AM
11-21-2014 06:36 PM
by Steve
2 157
Good help is hard to find
Hanks Lawn Care Services
11-19-2014 03:27 PM
11-21-2014 06:32 PM
by Steve
7 266
What is going on with...
biglee
11-14-2014 03:04 PM
11-20-2014 02:50 PM
by biglee
40 1,003
My advice for new guys
avetslawncare
11-15-2014 09:32 AM
11-19-2014 01:47 PM
by biglee
10 544
Lawn Care business...
crieg122
10-23-2014 02:23 PM
11-19-2014 12:39 PM
by acrajchel
28 1,909
raking leaves ?
robert8509
10-22-2014 10:19 PM
11-18-2014 04:24 PM
by acrajchel
14 1,499
Leaf removal
madmedic8575
10-24-2014 05:14 PM
11-17-2014 07:34 PM
by acrajchel
6 1,232
sod job
SGlawncare
10-30-2014 09:21 PM
11-17-2014 07:10 PM
by acrajchel
7 819
Customer wants me to...
Mr. Mow
11-09-2014 07:13 AM
11-17-2014 06:48 PM
by acrajchel
10 591
Hello!
Brian3137
11-11-2014 07:15 PM
11-17-2014 06:46 PM
by acrajchel
14 520
small biz in Phoenix,AZ
anthonyramos1
11-08-2014 09:35 PM
11-17-2014 05:59 PM
by acrajchel
2 366
Client won't pay...
WesleySnips
10-30-2014 03:53 PM
11-17-2014 05:37 PM
by acrajchel
22 1,426
Government contracts
avetslawncare
11-15-2014 08:50 AM
11-17-2014 12:59 PM
by Steve
2 295
Need help on deciding a...
Brian3137
11-10-2014 06:32 PM
11-17-2014 12:44 PM
by Steve
12 558
West cost lawn prices
SGlawncare
10-09-2014 10:51 PM
11-16-2014 07:54 AM
by stevef1201
8 1,652
So how do you guys...
Mr. Mow
10-26-2014 08:55 AM
11-15-2014 08:44 AM
by avetslawncare
14 1,763
Truck, Trailer,...
hawthornelawncare
12-23-2011 01:01 AM
11-13-2014 08:35 AM
by jrs.landscaping
81 31,912
The most dangerous part...
Steve
10-06-2014 03:45 PM
11-12-2014 05:05 PM
by stevef1201
14 1,742
A little hang up in snow...
stevef1201
11-08-2014 07:05 AM
11-12-2014 12:51 PM
by Steve
4 479
Bi-weekly winter...
lxarth
11-04-2014 08:37 PM
11-12-2014 10:06 AM
by WesleySnips
9 673
taking first steps...
sizemorelawncare
11-10-2014 08:24 PM
11-11-2014 01:21 PM
by Steve
1 374
Back Pack Blower
Ian Lovejoy
11-09-2014 08:41 AM
11-11-2014 08:12 AM
by Just for Cuts
4 427
Business Cards
crieg122
10-25-2014 01:03 PM
11-11-2014 07:56 AM
by Just for Cuts
12 1,379
How the unregister?
alive101
11-04-2014 07:39 AM
11-10-2014 01:48 PM
by Steve
4 652
Belt adjustment question
googus
11-05-2014 06:43 AM
11-10-2014 01:38 PM
by Steve
5 553
New parking area
ExtremeLawncareServices
11-07-2014 09:47 PM
11-10-2014 01:25 PM
by Steve
2 395
Podcast
Shark1611
11-07-2014 05:42 PM
11-10-2014 11:41 AM
by Steve
1 355
hi, from Minnesota
rjklohn
11-07-2014 02:21 AM
11-07-2014 01:44 PM
by Steve
1 373
New to snow plowing
SS.Lawncare
11-05-2014 04:00 PM
11-07-2014 01:21 PM
by Steve
6 626
New Member
tonyap
11-05-2014 10:35 PM
11-07-2014 01:15 PM
by Steve
1 415
New to the business
jcurr33
11-05-2014 03:21 PM
11-07-2014 01:11 PM
by Steve
1 469
Lines
Matther777
11-04-2014 02:19 PM
11-07-2014 12:54 PM
by Steve
1 503
» Popular Tags
2wd 4x4 aerocore apartment bid bid billy goat brushcutter bush care charge decorating deliquentaccounts ditches employee problems equipment rental estimate exmark ferris foreman four wheel drive gopherhaul gravely how much to charge husqvarna hydraulic jobs kawasaki labor cost landscape services lawn lawn care lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care seo lawn care website lawn care website seo lighting managing a lawn care business marketing monthly mr dave mulch mulch estimate new buisness ordinance podcast profit on employee push versus ride redmax running a business scag v-ride seo shreaded small engine repair snow sprayer starting a business steep lawns steve toro tractor auger trailer trimmer rack truck new used landscape turfgrass consulting won't return wood wright stander rh
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 03:32 AM.


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

All times are GMT -5. The time now is 03:32 AM.

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