Originally Posted by yardguy28
well in my neck of the woods your not gonna get people to sign up for paying a monthly amount whether work was performed or not. by the end of the year they'd want to receive a refund for work not performed.
and i don't blame them. i treat clients how i would want to be treated and i personally am not willing to pay a flat amount each month no matter what work is done or not done.
if they did 28 cuts i wanna pay for 28 cuts, if they only did 13 i'm only paying for 13.
income down or not my point about money management is when my income is down i already have plenty of money saved up that a year being down even as much as 75%, it doesn't affect me. i don't live pay check to pay check. i personally could afford to take a year off from work total if i wanted to and i'd still be sitting pretty.
i've managed my money very well. saved as much of it as i could before i even got into this business. i was making at least double what i make now in my previous career.
but regardless of all that for me it still comes down to me treating my clients how i would want to be treated. and if your estimate was 12 monthly payments of x amount no matter what work was done each month, i'd tell you to take a hike. i know you guys try to justify it by "well this season you might only pay for 28 cuts but receive 34 due to excessive growth and next season you might only get 15 cuts because of a drought so it all balances out" BULLSHEOT, i'm not buying it, and i'm not doing it. so i wouldn't expect my clients to do it either.
i charge all clients the same for all services residential or commercial. they all get invoiced for the work done each month. from pruning shrubs to snow removal and everything in between. i do the work then at the end of the month invoice for what work i did do.
it's worked for me the entire time i've been in business so no reason for to me fix something that isn't broken.
Again it is not a money mgmt issue that I bring up. Besides that just because you have saved well and can afford to take a year off or whatever you stated above, that is fine and dandy, but the fact would remain that income has been lost and the savings used to live on during that period has to be replaced and regained somehow - correct?
My point is that I simply do not see how anyone can create a accurate budget with the patterns that you guys can experience. How do you effectively plan growth - when you do not know what your sales will be a month from now?
If you were to go to the bank and ask for a loan - how would you explain that your potential income - may not be anywhere close to your estimated budget because there can be a drought at any minute?
I am not really dogging any of you for working the way you have - I am just questioning how you make your business work and how you plan accordingly for anything because all I would see would be a very hopeful guess. Please explain how you make accurate business plans?