unpaid accounts

[way to grow]

I started my lawn spraying business this last fall and am up to 180 accounts, but am having a hard time with people paying me promptly. I've been finished with my 2nd app for a few weeks now and only about 1/2 the checks have come in. Is this pretty common for you guys? Any ideas to speed up the payment process without bugging the customer too much?

[kootoomootoo]

gotta ask how you got 180 accounts so fast?

[Dwan]

rase your price 10% then offer a 10% discount if paid within 10 days of biling.
If they intend to pay ontime it won't make anydifferance on there price but if they didn't intend to pay rightaway then they should pay an extra 10%

[TSM]

many folks will 'file' the invoice and pay it on 30 days. That typically means that 30 days after they 'filed' your invoice the decide to sit down and write a check, then figure another day or two before they 'get to' putting a stamp on it. Few days in the post office hands and then it it your mailbox.

our invoices state that 'payment is due upon receipt of invoice' which we left at the door when the app is done. Some folks will write a check the next day....but not most. To cut back on this 'delay', we do several things.
#1) we offer a prepayment discount...about 30% of our customers take advantage of this. They send us a check for the entire season and recieve a discount.

#2) we offer a 10 month billing. we provide a coupon book, simulsr to a banks for an auto loan, they make 10 equal payments. We make the first payment due in February this way no one falls behind in money they owe us. About 20% of customers go this route. Especially those who use on line banking where they can set up a 10 paymnet on their computer.

#3)"Any ideas to speed up the payment process without bugging the customer too much?"
Customer owes us money for a service they requested...we do not feel we a bugging them! 30 days after an invoice is left at a customers door we send out a statement with a letter. Just a freindly reminder, we also charge 1.5%late fee (not a lot of money but it ussually covers the cost for doing this mailing). We run a program that is 6-7 weeks between applications. Our 30 day letter informs them that their lawn will be due for its next app in about 2 weeks and that we can not service them if they have an outstanding balance. Two weeks after that letter/statement is mailed...if they still have not paid us..we send a 45 day notice..this letter informs them that we are very aware that they still have not paid us and that their lawn is now due for its next application, we stress the importance of timing of applications for the benefit of their lawn. two weeks after that letter, if we still have not been paid, we send out a 60 day past due notice. this is worded quite a bit more firmly. We let them know that no further service will be scheduled until they pay us the $$ they owe us and another 1.5% is charged in interest.
Rarely do we have to use the 60 day letter, as a matter of fact, when we do have to send out a 60 day letter we automatically cancell them....but we keep on pursue for our $$$. thats when I start calling tham or might even stop by on a suprise visit. If we need to we send out a 90 day WAY PAST DUE notice informing them that if we do not recieve paymnet within the next 10 days we will file a small claims court suit....never had to, but will if need be

[BSDeality]

i use net-15 billing and split my customers into billing on the 1st and 15th of the month. I highlight due dates on all invoices. People like to put us at the bottom of the pile.

[DFW Area Landscaper]

I got signed up to accept credit cards this year. So far, I've been having problems getting the rate promised, but it looks like I'm on the verge of solving that problem. Once I get my credit card processing fees where they should be, it'll either be a deposit of $300 (which is my average on accounts where I've been stiffed) or a valid credit card on file. The way I see it, if they don't have a credit card, I don't want them owing me money.

Later,
DFW Area Landscaper

[Aleman]

Id like to know abaout the 180 accounts also. Im trying to grow my spray business and 180 accounts would be great....

[lawn]

TMS can you post a sample of your letters please?

[Team Gopher]

Hi way to grow,

Another idea is to bill in advance.

[way to grow]

Thank you for all your suggestions! You guys are great! I'm going to try all those ideas out. I got up to 180 customers by simply knocking doors and if nobody is home I have an attractive flyer that I leave with a bid. I started last fall and ended with about 45 customers, everyone else is new. This past week I hired someone to spray for me so I can just focus on building the business. I'm now up to 190. Thanks again for your help!

[jajwrigh]

Hopefully they are at least a certified applicator....

[kootoomootoo]

180 ........thats 90 plus 90 since last fall.

Did you say no to anyone?

[bobbygedd]

i doubt it koot, my wife had the same problem during her teen years, anyhow........this is why all programs are paid in full in advance.

[rodfather]

He must be doing something right...West Jordan, Utah (where in the hell is that I might ask?) ain't exactly Beverly Hills I would imagine...congrats on your succe$$.

[Trevors Lawn Care]

Originally posted by rodfather
He must be doing something right...West Jordan, Utah (where in the hell is that I might ask?) ain't exactly Beverly Hills I would imagine...congrats on your succe$$.

west jordan is a burb of salt lake city. If any of you have seen recently in the paper about the captured hostage marine in iraq he is from West jordan utah. Just an interesting connection..

Send a prayer out for him

Trevor