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scaglawnsnj
01-27-2005, 08:51 PM
Do any of you guy take credit cards..Was it a more profitable year when started taking them? I know how much most people love credit..I think they will be more willing to have a land projects done with credit not lump cash.

GrassMasterNC
01-27-2005, 09:03 PM
gmj,

I use propay. Very easy. Extremely user friendly.

$35.00 annual fee to start your account + $25.00 annual fee for if you want to be able to phone in your credit card payments. You can either do it online or right at your customers house. I think the fee is like 3.5% + .35 each transaction. It goes to your propay account and you can transer the funds to your business checking account whenever you'd like for a .35 fee. I like propay, but have not used them much - will push it more this year. A lot of customers love the ease of just paying by credit card or visa debit card. The only glitch - and it's not that big of a deal - is adjusting your income and expenses after you deduct the fees so your books add up right.

Anyways, did a lot of research and finally decided to go with them....easy and convenient, and many people prefer to pay that way I am finding now. Looking forward to using them a lot more this year.

Matt

Eddie B
01-27-2005, 09:22 PM
Accepting online payments via PayPal seems to result in less late bills.

ALarsh
01-27-2005, 09:51 PM
I don't do credit cards but I am going to push people to pay via paypal this year.

kdbetters
01-27-2005, 10:53 PM
I just started collecting them, however Ifeel that it is more convinient for the customer, and cut down on collections time.

brucec32
01-27-2005, 10:56 PM
It is one way to go. On the pro side, you are more likely to get paid since they can always charge it and they will put off the guy who they have to pay cash/check to and slide by another month.

The negative is that someone who doesn't have $100 or whatever in their bank account is a marginal customer.

Yes, it can be a convenience item for some, but if that was all they wanted you could set up a direct debit from a bank account rather than a credit card. My impression is that someone who thinks giving his credit card out to his lawn guy is a great idea is someone who isn't my kind of customer. In 13 years I've been asked about it exactly once, and that was my first year in business, long before it was commonplace. No great harm in it, but I am suspect of those who claim it's a big selling point that wins them customers. They may be getting customers with nothing in the bank. I am looking for long termers, not just filling a slot for a season or two.

JimLewis
01-28-2005, 05:19 AM
We do take credit cards, but that's because we are a full scale landscaping and irrigation company too. So 95% of the credit card transactions I do are for larger installation type jobs - not for lawn care.

If I still did JUST lawn care and clean-ups, I probably wouldn't deal with the hassle of credit cards.

Jim

Team Gopher
01-28-2005, 11:34 AM
Hi gmj lawns inc,

It's nice to be able to accept them. The more avenues you have to take payment the better. Then you could also set up your website to allow for payment online as well.

yamadooski
01-29-2005, 10:00 AM
Most CC's charge around 3%.
Now in $100k thats $3,000. I could use that money to buy better things or just plain invest it elswheres.
Just my .02.

kdbetters
01-29-2005, 10:19 AM
Most CC's charge around 3%.
Now in $100k thats $3,000. I could use that money to buy better things or just plain invest it elswheres.
Just my .02.

To be honest, I would take that hit if it means that I could get my money ina timely fashion. What about the interest that builds up if someone is not paying you or the time and money put into collections. Like someone else mentioned on a similiar thread, its almost like giving them a small discount for paying with their credit card or on time.Also the $3,000 will probably go into something that will make the business better, you don't think being able to accept credit cards is not making the business better. I do, just my .02!

two_planks
01-29-2005, 10:29 AM
Most CC's charge around 3%.
Now in $100k thats $3,000. I could use that money to buy better things or just plain invest it elswheres.
Just my .02.


More like just your $3,000. :p

Mueller Landscape Inc
01-29-2005, 11:58 AM
Most CC's charge around 3%.
Now in $100k thats $3,000. I could use that money to buy better things or just plain invest it elswheres.
Just my .02.

Would you be willing to pay an employee $3000 per year to collect your $100,000 gross from your customers and have it deposited into your bank account within 48hours after the work is complete? Working for a whole month and doing AR's and having to wait an additional 15 to 30 days after that to collect your money will cost you much more than that $3000. When customers don't pay on time, hold your money hostage, decide that you didn't show up 3 weeks ago, etc..... having the ability to charge a CC after that days work is priceless. Cashflow is King. If the CC is declined then you don't go back to service the property until it is cleared, that way you will not be continuing to have work, that you have done, piling up with a customer who can't/won't pay the bill. At the very least you will be out the cost of 1 visit instead of 1 month or more.

JimLewis
01-29-2005, 02:18 PM
Most CC's charge around 3%.
Now in $100k thats $3,000. I could use that money to buy better things or just plain invest it elswheres.
Just my .02.
Yah, that's gotta be about the most ignorant statement I've seen here in a while.

I had tens of thousands of dollars in jobs last year that I wouldn't have had otherwise had I not taken credit cards. And that 3% is built into our pricing structure. We make MORE money because we take credit cards, not the other way around.

Don't quit your day job just yet, genius.

mommacutz
01-31-2005, 09:35 PM
It's a fact that customers also spend more when they are able to use there cc's. Might get a few extra things done that they wouldn't ordinarily if they were just paying cash. Who says that just because a customer wants to pay by cc that they only have $100 in the bank. This country is run on credit as long as the charge clears I don't care how much they have in the bank!