Must be something in the air.  In the last week, I’ve had three questions regarding "leasing, or, as some call it, "long term rentals”. 

Here’s the skinny as I see it.  First, whatever you call it, the minimum time frame is for one year and renews automatically year after year.  The game plan is to price it so you always get your monthly service fee PLUS a contribution towards paying off your costs for the plants and planters.  Some compamies sell a ton of leases. others, none.  Whats the difference?  Well, many years ago an Interiorscaper (not me) gave a Pricing Seminar wherein he gave out the formula that costs should be recaptured in the first 6 Months!  Ha!  Not likely.  Particularly in todays economy.  But, because he was successful and charismatic, everyone in the room wrote the formula down and that is how they based all their quotes.

Others did their home work and realized that there are other ways to skin the cat.  They asked for longer contracts and priced out the recapture over 18 months or longer, added their customary service/replacement fees and got leases.  A lot of them?  No, but enough to make a ton more profit on those accounts over time.  Add the propensity for clients to just renew year after year and you have the basis for a very lucrative profit margin.

Key is that  the client NEVER owns the plants/planters.  You do. 

The negative is that your cash flow is negative in the initial stages, but the rewards are great.  o for PlIf you have deep pockets, I highly recommend it.  One major bit of advice.  Only lease/rent to well qualified clients.  This is not for the local hair salon or small accounts.  Only for Fortune 500 clients. 

Now, go out there and get ‘em Tigers.