The Pros and Cons of Interiorscaping Leases
When bidding and quoting for clients, many interiorscapers will offer a leasing option for plant installations.
In general, this means that clients pay a lump sum monthly fee that spreads out the cost of plant materials, containers, maintenance and labor costs over a set period of time. Different interiorscapers may have other considerations on their leases, but many follow that format for their clients.
Though some interiorscapers will charge full price for an initial install and offer a continuing maintenance contract, consider some of the pros and cons of leasing plants and plant containers as part of your interiorscaping services.
A Competitive Edge Over Time
Offering leasing options often gives an interiorscaper a competitive advantage. Once the initial costs of a leased installation are recouped, an interiorscaping business can reap the benefits of continued income. Any outside competitor will have a tough time competing on rates, as they’ll have to include plant materials, containers and labor install costs in their bid.
Easier to Offer Discounts
After initial installation costs are repaid, interiorscapers can offer more flexibility on pricing without losing profitability. Once the plants and plant containers are paid off, interiorscapers typically only need to cover the price of maintenance and operations. If clients experience hardship, it’s easier to maintain revenue and keep the account for a small discount.
Clients that lease their plants and containers might be more apt to sign another maintenance contract at the end of their term, especially if contract stipulations allow clients to own the containers and plants at the end of the lease. At that point, they’ll own the plants and containers, but still need plant care. As a result, clients will often sign on to another term for maintenance.
The longer a lease is in place, the more potential there is to maintain guaranteed monthly income. Once the initial installation costs are covered, profit margins increase.
One of the issues with leasing plants and containers is that interiorscapers shoulder much of the initial cost for installs. With a rock solid contract those initial installation costs will eventually be covered. However, if a client experiences a sudden hardship shortly into the lease it may be more difficult to recoup those costs.
Plant Design Changes
Some clients may think that leasing their plants and containers allow them to make frequent changes. Whether that means plant material, containers, placement, sometimes clients are left with the impression that having a lease means they’re able to make desired changes whenever they want. Though many interiorscapers are happy to make requested changes, too many can cut into overall profitability.
Though there are pros and cons to directly selling an install with a maintenance contract or just leasing plants and planters, interiorscapers can often adopt both methods to better serve clients. In fact, many industry professionals frequently offer both options.
Whether you offer leases or do an outright purchase with a maintenance contract with clients, you have to decide what pricing model works best for your business.
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