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BUSINESS OWNERS & MANAGERS

Year-Round Contracts vs Pay Per Service (Residential)

By Tyler Guess from Clean Cut Lawn Care

I see a lot of questions asked about whether it is better to do year-round contracts or have your clients pay per service. In my experience the answer is… it depends!

  • How good are you at budgeting?

  • How often do you like going to the bank?

  • How organized are you?

In my opinion year-round contracts are a whole lot easier on you and the customer. I'm going to list the pros and cons of each and try to help you figure out which one is better for you.

Now, before I list these, I would like to say that I do have clients on both of these options, as when I first started I was just eager to take anything and everything that came my way!

Year-Round Contracts

  • Pros

    • Less trips to the bank/ Less accounting each week

    • Year-round Income

    • You know what you're getting paid each month

    • The client knows what to expect each month

    • It keeps employees busier by maintaining properties year-round

  • Cons

    • There's less money during growing season

    • The customer can move home and you can't find them (to get paid)

Here's an additional year-round tip – don't include materials, such as mulch, when pricing out a year long contract.

Pay Per Service

  • Pros

    • There's more money to be made during growing season

    • You don't have to worry about somebody leaving and not paying you

  • Cons

    • You have to budget better for the off-season

    • There are more trips to the bank

    • You'll probably spend more time spent on accounting

I may have left some pros and cons out but this is a list that I came up with to try and help you out, especially if you're only using one option at the minute, and think you might want to add another payment option.

After all, more choice for your customers can mean more work for you!

Tyler Guess
Clean Cut Lawn Care
UAG Member 2018
YouTube

What type of contracts do you use and recommend? Join our forum to share your own experience and ask other pros for theirs.