Originally Posted by GSO LAWNEN4CER
If you hire a plumber to come out and fix a pipe.He gets paid after he's done.If you hire a auto tech to fix your car.He's paid after he's done with the car. If you go to the barber shop,he's paid after cutting your hair.
Why on earth would you cut someone's grass and wait a month to get paid? Thats insanity. IMHO your a fool to wait 30days for payment.
I bill by the cut, for the cut. No money no cut. Your customers know the day your coming.Leave the check at the property. Gonna be outta town? Pay in advance for the services needed. That 30 BS puts your neck on the chopping block. Before you kno it its 60days and no payment. And by that time,you've cut the property 8-9 times. All the fuel/windsheild time/labor/ wear & tear on the equipment. You just lost a ton of money! At this point good luck getting them to pay for 9 cuts at one time.
The difference between plumber is recurring service. That being said, we have a bunch of customers that pay late. By late I mean, we do the spring cleanup in march and start mowing in may. Then we do fall cleanup in october and by december, they start calling saying: " I know I owe you a bunch of money. I will get you a check when I am back from florida."
Most people would say, you are crazy. They have a financial formula for this called Accounts receivable turnover. http://en.wikipedia.org/wiki/Receivables_turnover_ratio
Every business is structured differently. I personally would rather have the money now rather than later, but I don't mind the guys working and getting the money in the winter so long as I am not completely broke. It seems as though no matter what happens, we can not get Accounts Receivable under $10k until the winter time.
Then we just send a pink invoice saying "Last bill before we apply for a mechanic's lien". They always pay then.
That being said, I bill monthly. If it has been 60 days we usually go out of our way to make sure we are not sending to the wrong email address and/or they are getting the invoices.
Some people think that is outright crazy. Some would say normal course of biz. Everyone has different levels and tolerances.