Service Contracts

[AspenArbo]

I did a search of past posts and didn't find anything on this, so here I ask.

Does anyone offer service contracts to clients for year-round care of their trees? I'm thinking of how to make this work, because I think for a few of my clients it would be sellable and profitable.
To be more specific, a contract based on how much care I will provide to their trees within a year. They pay a yearly fee (based on how in depth they want the care), then I take care of when I show up and what I do based on what I feel is best. They can also call if they want something specific or new emerge before I do my standard (regular) site inspection. When I do do work throughout the year, there still is a fee for that work, but it is at a set base rate based on the service (e.g. pruning $200, cabling $300, storm cleanup or restoration pruning $500, deadwooding $150).
For the right customer who values their trees and their landscapes but is unsure f what to look for or when to call for the right time to have the work done, I think this would be a valuable selling point.
Is this out there?
Thanks!!

 

[NickfromWI]

I do it for a few clients. Some really love it. Cheapest one is $500/yr for quarterly visits to fert, prune and thin fruit on three citrus trees.

 

[AspenArbo]

Wow, no one else does this? Thanks Nick, but maybe I won't bother, might not be worth the effort in advertising or setting it up.

 

[treehumper]

I actually worked on one for a golf course contract. 4 yr deal to prune the trees through the winter.

Like any efforts in business define the purpose of the proposal and what the cost benefit will be. Are you doing this to secure repeat customers? Reduce the time spent on estimates or sales calls? Improve scheduling? It could help financing having contracts with established clients.

Think of the service contracts that HVAC companies offer. Basic preventative services no charge for estimates, discounted rates on repairs.

Because no one else does this doesn't make it worthless. Makes it leading edge.

Good luck Sam!

 

[AspenArbo]

Thanks for the input!
I was thinking of the benefit it would have for me to provide the necessary care when needed, not when called. Plus it would help with cash flow throughout the whole season. Additionally, there are those clients who want me to do 'whatever is necessary'. A service contract with them would be perfect, I think.
Right now I'm leaning to having a rough outline of what it would be and then testing the waters with some clients this season to see if people are interested.

 

[treegazer]

I set up a few clients for annual programs for a 1 year period. It worked out that I would do a complete property survey in September. I looked at each tree, shrub, or planting on the property and identified any maintenance that would be required to maintain or improve the health of the plants. Each service was clearly identified along with the timing of each site visit. I created a 12 month calendar for the client showing when we would be on the property and what we would be doing.
The client signed a contract agreeing to have us perform the services and that they would pay when they were billed for each service. The proposal that was submitted was also broken down by line item for each service so the client knows in advance what they were going to pay.

It was nice to get these approved and make work orders for the next year. The idea is to get enough clients set up this way and you can have a full work load scheduled months in advance.
Service contracts are what make a PHC program successful. imo