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Multi-year contracts?

Discussion in 'Commercial Snow Removal' started by MLI, Jul 29, 2002.

  1. MLI

    MLI Member
    from Boston
    Messages: 53

    How many of you folks are using multi year contracts....say 3 years...on large commercial properties. Im in a situation where im bidding on a 10 acre sight, and probably will be purchasing frontend loader. I want to make sure I have morethan 1 yr on contract to make sure I cover cost on machine, but at same time dont want to scare client off with 3 year contract. Im sure I could rent machine for season, but would prefer to own at this point.:D
     
  2. Santa

    Santa Junior Member
    Messages: 14

    If your company has a good reputation, and you are good at selling the service you should have no problem getting long term contract's. If they don't want long term this year, rent a loader, give them excellent service, then hit them up for a long term contract next year. We currently have ten commercial client's, and our contract's run from 3 - 5 year's.

    With long term contract's, it's easier for us to budget equip. cost's, keep good employee's, and we don't have to go through the bid process every year. Be sure you take a good look at the property and make sure you want to stay there long term.
     
  3. MLI

    MLI Member
    from Boston
    Messages: 53

    Thanks for the info Santa!

    Thanks Santa!.....Not sure if its worth keeping long term(plowing)We want the account for the landscaping. The plowing maybe be a prob with many islands in parking lot. Its about 6 acres, I figure 2 pickups with loader should do the trick! I priced the lot out at $1200 per 6 inches. What type of money are we talking to rent a loader for the season?
     
  4. nsmilligan

    nsmilligan PlowSite.com Veteran
    Messages: 704

    I prefer some 3 year contracts, last one ended this spring and I will bid when it comes up again next month. The real benefit of a long term contract is that you have something to take to rhe bank, if you have to purchase new equipment especially if it's a fixed annual amount. A long term contract is also good for a large commercial operation because they can allow for plowing costs for future budgets.
    Bill