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do customers like being on a contract?

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  • do customers like being on a contract?

    This is like year 2-3 running a lawn business thats all out. But my question is do customers like being on a contract for a 6 month or 12 month period? Ive never used contracts on any of my accounts and im running very near 50 a week. Ive been stiffed maybe 2 times, by people moving out of rental homes. Other than that ive done fine with billing the once a month by mail and recieving my payment. Does contract have any advantage? I know that id like the freedom of dropping an account any time i need to, so would the contract restrict me from stopping lawn service? Or would the contract have a price for the customer to quite service before contract is up? And what kind of penalty would you charge? Thanks.

  • #2
    The customers I have don't go for contracts but that is mainly residential. The commercial I will use a contract.

    You are always going find those that are going to move out with out paying, etc. These have been few for me.

    I will also send out a letter stating that the service will be terminated until payment or arrangements for payment are made. There are sometime circumstances that come up for your customers that may be over come when it comes to this.
    Wayne

    "If the grass on the other side of the fence appears greener...it must be all the fertilizer they are using!" (Kevin Rodowicz)

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    • #3
      I have one commercial plowing account that I use a contract for. I don't use contracts for any mowing, even commercial. It has been a selling point that we don't use contracts. I'll tell them that we don't require them to sign any kind of contract, and if they aren't happy with the service they have no obligation to stay with us.

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      • #4
        Your running a business. Use contracts. It might someday save your account from the scrub that comes knocking at theyre door 10 minutes after you leave.
        mike
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        • #5
          If you ever need a loan from a bank, they will want to see contracts! I don't use them now but I will next season.

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          • #6
            No contract, no sell! Let someone else do it. 12 month contracts.

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            • #7
              Before I started my own business, I worked on a lawn crew for a landscaping company. The owner used contracts. In the heat of the summer, when the lawns became brown due to lack of rain, we were sent out like an infantry of morons. Why???...To cut dead lawns, just because the owner had a weekly contract. So we morons, cut the dead lawns so our boss could charge the customer. Talk about being ripped off. I felt like a damn accompliss to a criminal. I don't think there is a real need for residential contracts, however, even though I don't have commercial accounts I can only assume that they would insist on a contract. If I do ever use contracts there will have to be wording in place benefitting the customer, such as service being adjusted in times of drought.
              Put me out of service.

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              • #8
                Some thoughts ...

                For residential call it a ((work proposal)) and get it signed ... this is an agreement to do X work at X price to avoid misunderstandings. For mowing say ... mow as needed for the season with a fixed price ... NOT by the mow. This way you're covered if it doesn't rain and nobody is "counting mowings". Try for a lump sum agreement that can be billed monthly in equal pymts.

                For commercial a contract is expected.

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                • #9
                  Contracts

                  I had a customer that refused to pay her bill. She was in her 80's and a retired General's widow. Can you believe that?? I ended up having to take her to court. The judge awarded me everything that she owed to me, excluding all of the extras that there was no contract for like leaves, etc. I ended up winning but losing at the same time. We price two ways. contract price and non-contract price. Obviously, the contract price is better. There is a $2.50 per cut difference in the base mowing price and 5-10 % difference on all other services. We have very few people that don't want a contract. We remind them that in the event of a ton of rain and we are behind that contract customers also have priority. This has worked well with many agreeing to sign up in short order.
                  It may not work for all but it does for us!!!!
                  Buddy
                  The green on the lawn and the green in your pocket live in happy harmony.

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                  • #10
                    Originally posted by dare630
                    Before I started my own business, I worked on a lawn crew for a landscaping company. The owner used contracts. In the heat of the summer, when the lawns became brown due to lack of rain, we were sent out like an infantry of morons. Why???...To cut dead lawns, just because the owner had a weekly contract. So we morons, cut the dead lawns so our boss could charge the customer. Talk about being ripped off. I felt like a damn accompliss to a criminal. I don't think there is a real need for residential contracts, however, even though I don't have commercial accounts I can only assume that they would insist on a contract. If I do ever use contracts there will have to be wording in place benefitting the customer, such as service being adjusted in times of drought.

                    That's what I do. Even though its weekly maintenance, the contract states thatcould and will change during periods of rain or drought. Cutting a stressed dormant lawn puts it in more stress, not good practice. If it dont need, why cut it?

                    As far as no reason for residential contracts?......... you ever get tired of being dropped right in the middle of the season? they find someone cheaper during the season? Cant do that with contract, at least not with mine. Also another reason for residential contracts is for that winter income (12 month contracts).

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                    • #11
                      Simple, I wont work without one.

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                      • #12
                        A contract will not gaurantee that you will be paid.....

                        A contract will not gaurantee that the customer will stay with you through the season....... (But people often think they are committed, and won't look around. I have a cancellation charge in my contracts, since I have alotted time for your property for the full season, and I may not fill that time after cancellation.)

                        A contract is not the end all to business problems...... The definition of a contract, from a well rounded attorney: " A contract is simply a written agreement between two or more parties. Any time one of the parties wishes to exit the contract, he can."

                        A contract (proposal, work order, etc.) will help you sometimes down the road in customer hassles - you have your agreement in writing. A contract shows a degree of stability on your part to new clients. My contracts show a total annual charge for agreed services (fixed in the case of monthly rates, estimated in the case of itemized billings) - so there is no surprise to customers at some point in season.

                        Do you NEED contracts? That's up to you to answer. The above mentioned banker needs your contracts to verify your gross income, if you want to finance business expansion or new home. If a client dies, will the executor believe that the client really paid more than $5-10 a week to cut the grass, LOL? If you die, how does your family know how to value the business for continuation or sale?

                        In my simple mind, I would question a contractor who cannot put his proposal to me in writing. I would also question a client who cannot agree in writing to pay me for services as a contractor.
                        Jim
                        North central Indiana
                        Learn About Turfgrass

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                        • #13
                          where can I find written contracts for Massachusetts area?

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                          • #14
                            i too dont use contract but i would like to see samples of one or two. I think an agreement is what most customers are looking for, ie what is the price, if they are a weekly customer can they move to bi-weekly without any further costs. How much time for trimming is always a concern as some customer think i should do more then 10 min. A contract/agreement help clarify these issues.
                            Lee's Lawn Service

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                            • #15
                              A contract is required for every single job you do!!!!!

                              YES, a properly written contract/agreement will get you paid, and if you have to take them to court, THEY will be paying all court costs and attorney fees, plus late fees.

                              A good contract/agreement will let either party out of the deal, but what it does is ensure payment and eliminate all or as many gray areas in regards to service and price.



                              If anyone would like to see a copy of my contract/agreement, Private Message me and I will e-mail it to you. YOu need to include your e-mail addy, it is too big to copy and paste on the message service here.

                              Also, give me a couple weeks, I am getting ready to go on vacation.


                              This contract was looked at by my attorney and it will hold water in court. (In ILL anyway) and I have had to enforce it.

                              NEVER, NEVER work without a contract!!

                              It is protection for both parties concerned and if worded properly, WILL guarantee payment.
                              Jeeps are like women.....much more fun with their TOPS OFF!



                              A society that rewards based on need creates needy citizens. A society that rewards based on ability creates able ones.

                              Do you guys think Obama is going to kiss us after he is done with us or is he going to put on his belt and head out the door?

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