Flat rate Billing or Bill Due at Completeion?

[Lawn Wizard]

Was just wondering how many people charged for their services as they are done, and how many people add up the services and bill them over the season.

This upcomming season i really want to get all my customers on a flat monthly bill and was wondering what percentage of LCOs do it each way.

[Chuck Sinclair]

On my maintenance accounts i bill on the first on the month due by the end of the month. All extra work is billed on completion of the work.

[LAWNGODFATHER]

Monthly, but will be doing avg across 8 months neaxt season, with a pre pay.

Pay starting March 1st till November 1st. Start mowing April, unless it starts growing earier.

[Guido]

There is a good thread going on right now about 12 month contracts and the such.

[kutnkru]

If you havent done this in the past you could bill your clients for the lawn and fert portions and then add on the other services you provide to them as completed.

[Scraper]

I have been feeling out my customers lately on going to a 12-month payment plan where I will pro-rate an average number of cuts (28-32) as well as fertilization applications over a 12-month period. All other work like mulching, herbicide application and cleanups will be billed on an as-done basis. So farr people seem to like the idea. This way they don't get slammed on 5 cut months and they as well as I can budget accordingly. Not to mention the checks coming in during the winter months will be nice when I am sitting around waiting to go skiing. I have also thought about a pre-pay discount, but I have decided against it for the time being.

[kutnkru]

Scraper

The best part IMHO about the 10 month billing system is that you will have cash flow coming thru your doors prior to start up and after completetion of the season.

This will not only make your life so much easier, but less stressful too. I have one commercial client who signed up for the 12 month plan starting in January. I believe that my residentials will go no further than the 10 and thats fine with me.

Kris

[landscaper3]

On grounds maintenace we bill at months end. On ponds, landscape lighting, hydroseeding or other landscape services we charge regular customers 100% materials up front and 100% of labor charge when finished. On new customers we charge 100% of material and 50% of labor up front and depending on the size and length of job we may get 25% 1/2 way through and the other 25% when finished or all 50% when finished. This we found over the years this policy is our best way to protect us incase of no payers. So if a customer stops paying 1/2 way through we still got 100% of RETAIL!!!! material cost and at least 50% of labor charges so we wont loose ANY!!!!! money we may not make much but we dont loose any. If a company or person doesnt like our policy its probly becuse they fall in the no payers demographics. We close at least 80% of our estimates and and out of those 80% we get 100% of retail cost of materials on the day they SIGN THE CONTRACT!

[KirbysLawn]

Originally posted by Scraper
I have been feeling out my customers lately on going to a 12-month payment plan where I will pro-rate an average number of cuts (28-32) as well as fertilization applications over a 12-month period. All other work like mulching, herbicide application and cleanups will be billed on an as-done basis. So farr people seem to like the idea. This way they don't get slammed on 5 cut months and they as well as I can budget accordingly. Not to mention the checks coming in during the winter months will be nice when I am sitting around waiting to go skiing. I have also thought about a pre-pay discount, but I have decided against it for the time being.

Same here. I invoice on the 1st of the month due on the 15th.

[AltaLawnCare]

Some customers are billed per job, and some are monthly payments (12 equal based on avg visits)

All new customers are done on the 12 month payment plan - no more "per job" billing for me! I made my statements, "payable upon receipt" - but thats hard to enforce.

I'm doing like scraper is doing for customers who want the nice little extras ! :D

[VRL]

I do the same as Chuck.:D

[cp]

I have three classes:

Annual contract = 12 monthly payments = Total property maint.

Seasonal = billed monthly = usually basic maintenance + mulch.

On call = Pmt Due on Receipt = All others to include some additional work for Seasonal customers.