Video Transcription

Mike Callahan here with Callahan’s Corner, where you ask the questions we answer live here on Facebook. Questions submitted last week was how to actually go out and fire a bad client so welcome back to Callahan’s Corner had a question submitted last week how to go out and fire a bad customer. Callahan’s Corner where you ask the questions we answer them live here on Facebook so if you have any questions feel free to set them in on the live or recorded version and I’m happy to answer your questions. The questions submitted really was how to go out and fire a bad client so in order to fire a bad client in my opinion what we did in my business that Callahan’s Lawn Care was in our actual lawn care I want to say contractor agreement in the actual estimate document we went out and built a area air of Terms of Service and this Terms Of Service was built for the consumer and the business and what it did is it spelled out a cancellation period. So the cancellation period spelled out it was a two week written notice by either parties the company or the customer to cancel and obviously if the customer called and wanted to cancel for legitimate reason we would let them out immediately but the idea is that we made it a two-way agreement we took the risk out of it for the consumer but it also gave us an out and the out that it gave us if we eventually worked with a client that was a bad fit we had the ability to politely let them go and not injure the relationship as far as getting destroyed on social media or review. There really is two reasons why we did this so the first reason is the obvious of the question being asked if they’re not a good fit and they’re just they’re crazy which some clients are how do we get rid of them so we built it into the contract agreement two week written notice and we can let them go so traditionally we do is we would give them a written notice and then give them a call and within and let them know he unfortunately you know we need to part ways and we were pretty honest about it but you know obviously politically correct but we would also give them a reference of several other contractors that we would recommend inservice area so we didn’t just cancel them and leave them high and dry. The second part of this where I think is a little bit interesting as well is that when we would set that up in the lawn care estimate or contract that it was a two-week written notice for either party to cancel the agreement this allowed us to go out just right pretty much after this video here on the next few weeks we traditionally did the week of July 4th that following week we ran a job costing report and that job costing report would allow us to go in there not emotionally and actually list all several hundred lawn mowing customers and say on average if our goal is fifty five dollars per man-hour are we hitting that goal and if we weren’t hitting that goal the report that we used would actually kick out property specific pricing so if your goal is fifty five bucks an hour you need to raise the price per cut say two dollars and seven cents whatever it was but it was to the penny and it was based on us using our mobiles in the field clocking in and clocking out of the job so based on the historical data on that yard it would tell us what we needed to charge so what we would do is send a written agreement not a cancellation agreement but written contractual agreement that we needed to raise our price X amount of dollars per cut and this is the reason being because we’ve been tracking the time and we’re not hitting our goals and the property is under price but that gave us an out to raise the price and still would fit within the confines of that contract so it wasn’t exactly asked at the Callahan’s Corner question of how do you get rid of a bad customer I recommend putting that in your estimate and contract agreement sending it in writing and then give them a call and give them some different contractors they can contact so that’s if you’re firing them but in addition to that you also want to have some verbiage in there to cover you so you can raise your prices midseason when all the other contractors are too busy to return phone calls and do estimates so if you did underpriced a job or maybe they added fifteen trees in the front yard and your crew didn’t tell you about it and obviously the job was priced for no trees so you’ve doubled or tripled the amount of weed-whacking engine blowing we can account for that so these are the things that I would recommend that we did on our business throughout the years to learn from things we weren’t lucky enough to get right. In your estimate and your contract if you have one contracts are hit and miss there are some pros and cons if you can get away with it in your market I like agreement there is non contractual that runs 12 months a year that auto renews but in the estimate document and agreement you want that clearly spelled out it’s a two-way cancellation with a two-week notice is what we found is the the appropriate time to make that work and that allows you to raise your price mid season or mid rolling contract as well. Comments questions drop them below but that’s how we tackled getting rid of bad customers we literally just had the verbiage in our estimate or contract and mailed that out soon the two-week notice with competitors that we would suggest that they shop to and unfortunately just wasn’t a good fit and we couldn’t meet their needs and if we couldn’t meet exceed their service needs we wanted to basically help them out and provide them with contractors that hopefully could we were able to do that legally through the actual contract agreement that we put together in our estimate and when we wanted to raise our prices we had that ability as well so comments questions drop them below Callahan’s Corner- you ask the questions we answer them live right here on Facebook