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Contract Length

Discussion in 'Business Fundamentals' started by BossPlow614, Feb 6, 2012.

  1. BossPlow614

    BossPlow614 2000 Club Member
    Messages: 2,870

    Posted this on lawnsite as well, but I'm wondering what some of you guys' (that do service all year) commercial contract lengths are, 1, 2..3 years? Just trying to get a gauge, if you don't wanna post you can PM me.
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I do 1 year contracts,some like them longer with automatic price increase each year.
  3. Turf Guy

    Turf Guy Member
    Messages: 51

    We offer up to 5 year contracts with CPI increase annually.... tymusic
  4. BossPlow614

    BossPlow614 2000 Club Member
    Messages: 2,870

    How many accounts do you have that are 5 year contracts?
  5. Turf Guy

    Turf Guy Member
    Messages: 51

    We currently have 11 sites a total of 23.5 acres of sidewalks & blacktop (Commercial, Industrial & Institutional) on five year contracts for winter maintenance. in the summer we have 23 for landscape / lawn maintenance contracts which accounts for a total of 183 acres of grounds. We also have some annual renewals and 3 yrs contracts.... All the long term (3 to 5 yr) contracts are Commercial, Institutional, Industrial or Municipal sites.
  6. PowersTree

    PowersTree Senior Member
    Messages: 586

    I do all residential. My contracts all auto renew. If I feel a need to raise the price, I submit a new contract. But I've learned now how to bid to get the margins I want, and haven't seen a need to raise prices lately. I mean, I would love to raise all their prices, but I'm thinking I'm pushing it for what my market bears.