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View Full Version : Economy effecting anyone?


chipk1
03-23-2007, 08:00 PM
Out of the 54 residential accounts I have, 7 of them are up for sale. I think these stupid interest only ARM's mortgages are starting to effect many home owners that have fell prey to them. I have also noticed that many of my customers are getting later and later. I currently have 1500.00 setting in my A/R that are past due which is about 1000.00 more that a year ago. Is it just me?

I guess the good side to this is many local LCO's will go under and I will pick up some of those accounts:drinkup: . Not that I would want that to happen to anyone.:D

ed2hess
03-23-2007, 09:17 PM
People are paying later and later....while we have a lot outstanding we was talking to one of our major irrigaton installer and he had 1.0 million outstanding. He runs across several cities and said it is bad everywhere in Texas.

mowahman
03-23-2007, 09:42 PM
As of today, I still have over 7K out on last months plow bills. All are NET 10.
In the past years, most would be in by the 7th-8th. Only the 2 seasonal contracted ones paid between the 15th-20th. This year, it has been extremely slow. I think most of them thought winter was done and over with except last Friday/Saturday we plowed 'em all again. I thought that would get the checks in, but it didn't. I've been at this game since 1975 and only one other time I can remember things being this slow..1988-89. Was talking to the guy at the mower shop and he said they sold more snowblowers in the past month than they sold since November. Crazy times are around the corner!!!!!!!!!

jeffscap
03-23-2007, 09:52 PM
People are paying later and later....while we have a lot outstanding we was talking to one of our major irrigaton installer and he had 1.0 million outstanding. He runs across several cities and said it is bad everywhere in Texas.

Man That much outstanding? If he doesn't watch he'll be outstanding in line.:waving:

Duekster
03-23-2007, 09:54 PM
So far no but I am mostly commercial. I am worried about getting played because a few peps are for sale.

Duekster
03-23-2007, 09:55 PM
If anyone has a solid contract for residential I would be grateful

txgrassguy
03-23-2007, 11:02 PM
Nope, I'm hammered with work.
I have a strict, firm policy.
My invoices are net ten, anything after gets hit with a finance charge.
It really winnows out the late payers, deadbeats and a very few " gee - do I really owe you that much?".
Give people an inch and you will loose your business.
I sure as hell am not a charity, neither is my business and I will not give in!

Duekster
03-23-2007, 11:13 PM
I don't extend to much credit to res either.

Envy Lawn Service
03-23-2007, 11:17 PM
Yes...

I feel the squeeze more every year.

LwnmwrMan22
03-24-2007, 05:27 AM
No, I went to straight commercial years ago and every year get more work than I can handle.

I DO have some accounts that are paying later and later, like 1-2 days / month later, but then they'll get back on their usual day and be good for 2-3 months, then slow down again.

I think it has more to do with people don't have time to pay bills, personally.

I find that in my own life. With 2 kids going different directions both for school and after school activities, then work, errands, etc., you get home, get the kids in bed, sit down for a minute yourself, then say "I'll get to that tomorrow". Pretty soon you're looking at bills that were due 3 days ago.

As for the homes being for sale, yes, I totally agree that many people now have mortgages that they cannot / will not be able to afford.

Mike Fronczak
03-24-2007, 08:05 AM
I'm getting killed. From what we did in 2005 I'll bet this season I'll be down 75% or more. Worst part is guys are doing it for less than I was charging then, I didn't up my prices they lowered their's. Crazy when you do the math they're working for less than min wages. No thanks. Working on transitioning to all snow, I'm not going to pay people so I can sweat my a@# of for them. I will end up keeping serveal of my good lawn accounts & that will be it for summer work, pay down debts, wait to see what happens. It's going to be a tought two years (till trucks are paid for & wife finishes school). If it gets worse or snow pricing tanks by then I can sell out & go to school. I'm very lucky though as she has unlimted overtime we can fall back on at crazy pay, so losing the house & that stuff isn't a worry, just dealing with being Mr. Mom.

LawnScapers of Dayton
03-24-2007, 08:30 AM
Last year was my best year yet, and the calls are up this year......I did lose a few mowing accounts from last year but not for financial reasons, deaths, marriages, etc..... The snow in Feb. was a great unexpected boost.....and everyone is paid up.....

chipk1
03-24-2007, 09:31 AM
People are paying later and later....while we have a lot outstanding we was talking to one of our major irrigaton installer and he had 1.0 million outstanding. He runs across several cities and said it is bad everywhere in Texas.

I hate to see that guys accounts payable ledger!:dizzy:

Can I Mow Your Lawn?
03-24-2007, 10:46 AM
Sales are up 82% YTD and we have been stiffed on ONE lawn mowing this year. Next day credit cards are the ONLY way to run a lawn mowing business, in my opinion.

What's the saying:

Early to bed, early to rise...and never forget to ADVERTISE!

Later,
Can I Mow Your Lawn

ed2hess
03-24-2007, 06:00 PM
I misread the thread.....business is getting better from the standpoint of new accounts. The problem is they just aren't paying on time. We hear the same story from plumber, electrical, landscape, friends. When you get over a hundred customer you can't spend all your time chasing down people because they don't pay on the 15th. The ultimate answer comes down to them paying very very quickly when they get a friendly note from the lawyer. And we are finding them to be friendly about paying and say something stupid like "we didn't know we were that late".

LawnScapers of Dayton
03-25-2007, 06:11 AM
I guess I am lucky, I have not had that problem.