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 by: Kevin Whiteside

Customers are important and you want to make sure you keep them. Finding new ones can be costly and time consuming.

For a professional approach and to increase your chances of keeping them, put your services in a contract. Yes, a written agreement. Many companies, you probably wouldnt expect, use contracts. So get on the bandwagon.

You may be unable to do this with some customers, but many will be open to it. It shows professionalism. A contract doesnt have to be looked upon negatively. It can actually comfort a customer. It shows them you are serious about the business and you will do what you say you will.

Some key points to include in a contract are

* Services

* Address(es)

* Payment Terms

* Termination

* Renewal

* Hold Harmless

Services

Make sure to list what will be provided. Be extremely specific. For example, when cutting a lawn list whether it will be bagged. For leaf removal, tell how many times a year it will be done. Dont just put leaf removal. The customer may think it is 1 time a month during the season.

If doing a lawn spray service, list how many times, when, and what applications will consist of.

Always include how many times and when with a clause in the contract to compensate for weather conditions. Make it easy to understand.

Address(es)

Some business may have multiple locations and branches such as convenient stores and gas stations. Make sure you list the address and name of each business you are servicing. Different locations for the same company may have different services.

For example, some gas stations may require more mulching or leaf removal than the others. Make sure you are specific in what you will do for each of the locations. Try not generalize. It could burn you majorly.

Payment Terms

List how and when you expect to be paid. Most payments are expected upon invoice, but some big companies expect to pay 30 days after receiving the invoice.

If you want immediate payment for certain jobs stated in the contract include it. Give them an incentive and offer a discount for paying within 7 days of the invoice and penalize them when they do not pay within a certain time. Consult a lawyer and find a percentage that is fair.

Some contracts consist of one easy payment once a month. They add all the services payments over the course of 1 year and divide by 12. For example, if all the income for 1 client totals 50,000 for a year, divide 50,000 by 12 months = $4,166 per month.

Termination

Have a clause in the contract so you or the customer can terminate the contract. You never know what will arise. You could become ill or unable to continue. A 30 day written notice from either party is fair. Dont burn your bridges and be professional.

Renewal

If you and the customer are pleased, having an easy way to continue service after the contract is up is a MUST. This avoids having to write a new one. Thats why a clause should be included.

You can say the contract automatically renews or that the customer should notify you 30 days prior to the end of the contract to discontinue service. There are many other ways to accomplish to do this. This is just one.

Hold Harmless

An agreement that states your company agrees not to hold the customer liable if you or one of your employees gets hurt while on their property. Liability and workers compensation insurance is important for this type of agreement. Some customers may require this, but most bigger businesses require that all service professionals show proof of this business insurance even if it is not required by law.

A contract is a good thing. It helps in business planning. How many employees will be needed at certain times of year, how much inventory needed, types of fertilizers and chemicals and what quantity. Also, will let you know if you are able to afford new equipment or vehicles. Plus, it shows professionalism.

I spoke about the words contract and signature(sign), but please use these instead when dealing with customers- Agreement and OK.

I need you to sign right here OR

I need your OK right here. We have a yearly agreement

About The Author

Kevin Whiteside is the owner and editor of www.LawnForum.com Monthly,an online newsletter and website for lawn and landscape professionals.Get a FREE subscription here LawnForum@aweber.com

He is also the author of "Turn High Grass Into Cold Cash- How to Start the Ultimate Lawn Business" www.GrassToCash.com

You can use this article as long as the bylines are included.

kevin@GrassToCash.com