“Evergreen” Contracts and Contract Negotiation with Tellecommunications

I prefer month-to-month contracts as much as possible, especially in areas of technology.  This is to give me the freedom to cancel with the vendor in case they aren’t working out financially.  It’ll allow you to cancel after the month without any repercussions.  Perhaps you find someone cheaper or you may discover their services aren’t really needed.

Make sure you’re reviewing ALL contracts in the fine print and renegotiate the fine print.  If you don’t like it, walk away and check with a new company if many companies offer similar services.

Often contracts will have provisions that automatically renew the original term of the contract unless you cancel at least 90 days prior to the end of the term.  These are “evergreen” clauses and I HATE them.  Some contracts will even state you can’t cancel earlier than 180 days before the end of the term.  That means you only have a 90 day window to cancel a contract that may automatically renew another 5 years!!!

I will often try to do a standard term on the contract, and then once the term ends, have the contract month-to-month.  Or if it’s an evergreen contract, I will send them a cancellation letter the first month or as early as possible so that it’ll force them to come back to the table to renegotiate the terms at the end of the term, rather than automatically renewing.  You still need to be on the ball upon renewal time.

The most notorious companies are the ones that deal with technology.  Month-to-month is the way to go or at most an annual contract because technology and pricing is constantly shifting downward.  You have to be on the ball and paying attention to these because often times you have a small window to cancel.

Companies to consider: telephone, Internet, and television.  Or basically any company that you started services with more than 3 years ago.

I’ve saved hundreds of dollars per month by trimming bloated telecommunications contracts from 2004.