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  #1  
Old 04-28-2013, 06:31 PM
Ben Harris Ben Harris is offline
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Join Date: Mar 2013
Location: Wilmington, NC
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Billing

What is the standard billing practices for customers on annual lawn treatment plans?

I see Weed Man & TruGreen offering monthly bills, do they just add
cost per service then divide months on plan?

Or do you just bill per service.

Thanks
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  #2  
Old 04-28-2013, 06:54 PM
LawnsharkMB LawnsharkMB is offline
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I add up the total planned applications for the year and offer the customer 10% off if they pay the full amount up front. Those that don't I bill after each application.
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Old 04-28-2013, 07:05 PM
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kbrashears kbrashears is online now
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I can't imagine giving 10% off for prepay. How can you make that up? Unless you start off 8% too high...lol
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Old 04-28-2013, 07:12 PM
LawnsharkMB LawnsharkMB is offline
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Quote:
Originally Posted by kbrashears View Post
I can't imagine giving 10% off for prepay. How can you make that up? Unless you start off 8% too high...lol
I know from the start only a handful of customers will do it. It's not like 40 customers are getting 10% off. This year I offered irrigation start up along with it for a "discounted rate" that more than made up the difference.
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Old 04-28-2013, 07:18 PM
Ben Harris Ben Harris is offline
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Quote:
Originally Posted by kbrashears View Post
I can't imagine giving 10% off for prepay. How can you make that up? Unless you start off 8% too high...lol
How do you bill?
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  #6  
Old 04-28-2013, 07:30 PM
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kbrashears kbrashears is online now
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Quote:
Originally Posted by Ben Harris View Post
How do you bill?
However the customer wants.

Single
Double
Quartly
Monthly
After each app is the most common.
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  #7  
Old 04-28-2013, 08:56 PM
jbturf jbturf is offline
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Location: groton, MA
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I offer prepay or invoice after service only, personally I see too many issues with monthly billing--
such as more work for us sending more invoices/statements, office supplies + postage, offering essentially credit
terms to people - we are not banks, potential issues if customer cancels for whatever reason
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Old 04-28-2013, 10:12 PM
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ted putnam ted putnam is offline
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Location: Arkansas
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We print invoices for each application and usually leave them at the door. Everyone gets an invoice. Those who have prepaid have a negative balance and get no envelope with their invoice. Those who haven't get an envelope as well( pre-printed with our address). I usually offer a 5-7% prepay discount but this year I offered 10% for a couple of reasons. I usually have about 15-18% take advantage of the discount for various reasons.This gives them a good deal and gives us much needed cash on the front end for getting out the door We have enough of a customer base that cash flow stays pretty steady as long as production does. We try to stay on about a 7 week rotation.

It works pretty well for us.

We are a tad bit higher priced than our competition but that doesn't seem to affect us.

We have grown by about 25% this year. and 100% of that has been through referrals.
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Old 04-30-2013, 08:56 AM
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mikesturf mikesturf is offline
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I send an invoice for 1/2 of the years work with the yearly service agreement in Feb. They send me 1/2 of the year's payment in before I start working. The 2nd payment is mid Oct with my final app. I would rather spend my time do apps than accounting during the growing season. 10% of my customers pay in full in spring-no discounts here tho. Never had a complaint.
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