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Show Off - Picture Post - Photo Gallery Post your lawn care and landscaping pictures. Also show off your stuff: Lawn care trucks, trailers, equipment, mowers, signs, marketing material, shops, lawns, toys, projects etc....

Customer in 2010


Show Off - Picture Post - Photo Gallery

Post your lawn care and landscaping pictures. Also show off your stuff: Lawn care trucks, trailers, equipment, mowers, signs, marketing material, shops, lawns, toys, projects etc....
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  #1  
Old 10-19-2006, 06:17 PM
tiedeman
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Well, I pulled out a huge deal today. I locked in a current customer until 2010, and he pre-paid all the way up to 2010. Amazing. This is a guy that has both a business and residential house. I am taking the winter off
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  #2  
Old 10-19-2006, 06:19 PM
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WOW! That is amazing. How did you set that up?

Did he suggest it or did you?
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Old 10-19-2006, 08:39 PM
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Well, he has been a great customer since 1999, and he must think that I am a great service company as well. *Because before me, he went through 3 companies in only 2 years.

But he is currently on his 2nd year of a 3 year contract (2004-2007) in which he pre-paid for. *But I thought of a good way to get some cash in quickly, and pay off some business debt was to extend his contract until 2010 (three more years). *

This is the catch. *I agreed to let him pre-pay for three more years at the same exact price that he paid in 2004. *You might think that I am nutz because the cost of living, fuel prices, and everything has went sky-ward since then, but I am currently thinking of short term gains from this contract and long term gains. *By getting the money now, I have approximately $14,000 to use right now for equipment and most importantly to pay off some debt. *By paying off that debt now, I do not have to worry about any more interest rate charges, which in the long run, will save me money.


Another key reason to lock him in until 2010 is because his house and his office are both key properties for me. At his office, I already maintain 2 of his neighbors, and at his house, I already maintain 3 of his neighbors. So if I was to lose either his house or his office, I feel that the surrounding neighbors might leave too...perhaps.
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Old 10-19-2006, 10:08 PM
Howard Roark
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Sounds like a good decision, although the one thing that would worry me is to be tied in with someone for so long should something go array.

Then again I only deal with resi's. Do you ever find this a problem....going in somewhat long term, only to regret it?
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Old 10-19-2006, 10:53 PM
tiedeman
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I have only had one customer ever of where I wanted to get rid of them so bad. *They were on a 3 year snow removal agreement. *But finally last year (the 2nd year of the contract), we both agreed that it would be best to go seperate ways. *It was fine by me. *I was happy...I didn't even charge them a cancellation fee.

Now I no longer offer 3 year contracts to customers. *This customer (that I have until 2010) is the only that I offer them to anymore, because I value him as a customer.

Now in regards to customers paying so far in advance, it states in the contract, that if they cancel at any time there is no refund, only credit towards future services. *That saves my buttocks in case they cancel after the 1st year, and I have to try to come up with $10,000. *Perfect example of this. *I had another customer, that pre-paid for his house and his mothers house in advance for the year. *His mothers house was on the market, and it stated in the contract that only a credit would be given if her house sold. *Well, it sold and he had a $900 credit. *He applied it to other things around his house, and basically ended up using that credit. *But he never got the $900 back in cash.
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Old 10-23-2006, 04:29 PM
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I am glad to see you thought this part out. I would be concerned with having to refund money if things went bad too.
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Old 10-23-2006, 06:13 PM
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Yup, it would put a serious stress on the cash flow if I had to give out large refunds
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Old 07-19-2010, 12:45 AM
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Quote:
Originally Posted by tiedeman View Post
I have only had one customer ever of where I wanted to get rid of them so bad. *They were on a 3 year snow removal agreement. *But finally last year (the 2nd year of the contract), we both agreed that it would be best to go seperate ways. *It was fine by me. *I was happy...I didn't even charge them a cancellation fee.

Now I no longer offer 3 year contracts to customers. *This customer (that I have until 2010) is the only that I offer them to anymore, because I value him as a customer.

Now in regards to customers paying so far in advance, it states in the contract, that if they cancel at any time there is no refund, only credit towards future services. *That saves my buttocks in case they cancel after the 1st year, and I have to try to come up with $10,000. *Perfect example of this. *I had another customer, that pre-paid for his house and his mothers house in advance for the year. *His mothers house was on the market, and it stated in the contract that only a credit would be given if her house sold. *Well, it sold and he had a $900 credit. *He applied it to other things around his house, and basically ended up using that credit. *But he never got the $900 back in cash.
You don't need to put an *before every sentence. Just saying.
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Old 07-19-2010, 12:55 AM
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Quote:
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You don't need to put an *before every sentence. Just saying.
Lol this post is almost 4 years old why bother commenting....... Just sayn......
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