Video Transcription

Hey Mike Callahan here, I want to make a quick video, had a question submitted about something we always deal with in the summer season as we ramp up in the heat just like today definitely rays, how to handle skip services so it’s particularly in a lawn care question but definitely think this would warrant discussion around home cleaning as well. The question was how to handle skip services so predominantly you’ve got a 28 or 30 week contract and the contract is to guarantee your spot on the schedule for weekly lawn mowing, it’s gonna include your weed whacking, your mowing, edging and blowing off of the surfaces. What I would recommend doing is writing in a contract even if it’s not a contract per se signed, it’s an agreement it’s a term of service and what we did at Callahan’s Lawn Care is we clearly define the obligation of us not over booking our schedule providing quality service. It was what was in it for the consumer and then after that we actually went in and talked about a 50% charge for skipping a scheduled service throughout the contract or seasonal term of lawn mowing so what we did is the client had to give us at least a minimum of 24 hour advance notice and if we didn’t show up we would charge 50% of the visit. What this did is it allowed us to cover our fixed costs and some of our variable cost and the way we tackled this for the consumers it was upfront any estimate so there was no shock factor this was in there plain as day in bold letter that there is a skip charge of 50% and if it’s less than 24 hours it’s the full charge. What we did is we left the decision in consumers hands because a lot of times the consumer would assume that we would skip the lawn and originally in the early days in the lawn care company we did but sometimes we made the wrong choice skipping it because maybe they were having a graduation party or birthday party we had no idea that they didn’t want it skipped and they would call back aggravated if we skipped it so kind of damned if you do damned if you don’t . So what we did is we gave the skipping ability to the consumer we outlined it in the contract and they had to call 24 hours in advance to skip the service and if they did would be a 50% charge in the what was init for the consumer and this was the important part as we twisted that is that it reserved a spot on the schedule and we didn’t over booked our schedules. By charging 50 percent for skipped service it reserved their spot and allowed us not to overbook our schedules because it covered our fixed costs such as insurance and office and overhead and it also allowed it enough time every time whether it was in spring summer or fall to do a quality job. You can’t go out there in my opinion and just say we’re gonna charge you fifty percent for no reason just because you skip but if you flip the switch a little bit in talk to the consumer why it’s important that you don’t over book your schedule and how you’re giving them a slot that’s served at that point that 50% charge is going to actually benefit the consumer so up to 24 hours 50% charge less than 24 hours full charge and highly recommend spelling this out clears day in your estimate to be upfront and honest about it and when you do that you have the ability to cover some of those fixed cost., just like the 90-plus degree day here up in upstate New York a lot of the lawn care companies are starting to get skipped mowings. What I recommend is if you haven’t do it institute a skip policy 50% charge at least for any skip mowings up to 24 hours if it’s less than 24 hours it’s a full skip and the benefits the consumer is it you continue to provide a quality product that’s not rushed and you don’t overbook your schedules and if you didn’t provide the 50% charge you would have to overbook your schedules by probably 10 to 15% to cover the skipped lawn mowing that could potentially happen. Comments or questions drop below but that’s traditionally how we handled it in my business. I want to say what’s up to Chase Coats, Tim, Colleen, BJ and I can’t see the rest of the people on here live right now with the sun rippin right now. Conversations around skip services and charging for him 50% with 24 advance notice and 100% less than 24 hours and the benefits of the consumer that you’re charging them that is it saves their spot in schedule we’re not gonna rush through the work and we don’t over booked our scheduling. Probably gonna be a lot more around this in the upcoming weeks here with the heat that we’re seeing at least in the Northeast and some of the southern states but don’t be afraid to do it that’s a benefit to the consumer because mostly your fly-by-night competitors do not charge that we were the first person in your city to actually institute that rule and I would tell you within about 12 to 24 months 99% of our competitors that were running legitimate businesses adopted the practice so it was not just us but it was everybody in the community that started doing it as well. Comments or questions drop them below hopefully that was helpful. Callahan’s Corner – you ask the questions we answer them here live on Facebook.