Register free!

The Green Industry's Resource Center



Reply
 
Thread Tools   Display Modes
  #1  
Old 06-16-2012, 11:25 AM
bob the builder bob the builder is offline
LawnSite Member
 
Join Date: Oct 2009
Location: Lexington KY
Posts: 16
Switching Customers from monthly billing to weekly billing

We are experiencing that our monthly invoices are not generating the cash flow that we need to operate our business. My customers receive their invoices by the 3rd or 4th of the month and our terms are 15 days but they seem not to care. If they wait 30 days to pay their invoice then that means the first mowing of that invoice was 60 days ago. We use service autopilot and we can set it up to make each customer pay weekly with their credit card but I dont know how they will react with me changing the way we bill. We can auto charge their card as soon as we are done mowing their and have the money in a couple of days verses 60 days. My question to you guys is how to tell my customers that they must switch to our new billing process without loosing them.
Reply With Quote
  #2  
Old 06-16-2012, 12:03 PM
MOturkey's Avatar
MOturkey MOturkey is offline
LawnSite Silver Member
 
Join Date: Feb 2004
Location: Bolivar, MO
Posts: 2,631
Tough situation. I send invoices immediately following the last date of service in the month. In other words, if the last day I mow is the 24th, the invoice goes out the following day. I don't date the invoice any differently, but people tend to pay more quickly. I have multiple bi-weekly, and even a few monthly, accounts, so I receive payments throughout the month. For example, I have one account which I mow on approximately the 1st and 15th of the month. I mowed it yesterday, and their invoice went out in today's mail, rather than waiting until the end of the month. I also find this is much easier for me, rather than having to do all the invoices at once.

As for your question, if feasible, offer a small discount for switching to auto-billing for existing customers. You'll be paying a fee for running their card, but it will be partially offset by not having to mail out invoices. New accounts, you can just tell them this is the way you do business. Good luck.
__________________
Neill Prater
Dependable Mowing Service
Reply With Quote
  #3  
Old 06-16-2012, 12:07 PM
Duekster Duekster is offline
LawnSite Fanatic
 
Join Date: Jan 2007
Location: DFW, TX
Posts: 7,971
I am going to suggest that perhaps you actually have a revenue problem which is made worse by cash flow.

If the revenue is there, you should be able to hit a rhythm even with the 30 to 60 day lag in cash flow.
Reply With Quote
  #4  
Old 06-16-2012, 12:18 PM
yardguy28 yardguy28 is offline
LawnSite Platinum Member
 
Join Date: Jan 2010
Posts: 4,465
I can't imagine a successful LCO can't make it on monthly invoices. I realize I'm solo so overhead is diff for me but still.

whenever I think of money in life in general it all comes down to how you manage it. talk of needing cash flowing weekly or all 12 months to me says bad managing of money.

we should all be able to have our clients pay us all for the entire season up front and be able to go the whole year without a single check. likewise we should be able to accept monthly invoices 9 months out of the year and be fine the other 3.

it's in how you manage your money. you receive the same amount whether it comes weekly, bi weekly, monthly, yearly.
Reply With Quote
  #5  
Old 06-16-2012, 01:34 PM
fastlane fastlane is offline
LawnSite Senior Member
 
Join Date: Feb 2002
Location: east PA.
Posts: 347
Why is it that a lot of " lawn care " companies think they should have instant access to their money? Do you you not have a minimum 3 month working capital like most business plans suggest? I do understand " I did the work I'm entitled to the money " If this is a business do you have a business plan?
Reply With Quote
  #6  
Old 06-16-2012, 02:24 PM
Schuley Schuley is offline
LawnSite Senior Member
 
Join Date: May 2009
Location: South Central WI
Posts: 250
Enforce a late fee policy. If they pay late they get a late charge...
Posted via Mobile Device
Reply With Quote
  #7  
Old 06-16-2012, 04:03 PM
MOturkey's Avatar
MOturkey MOturkey is offline
LawnSite Silver Member
 
Join Date: Feb 2004
Location: Bolivar, MO
Posts: 2,631
I think some of you guys are being a bit harsh with the OP. We can't know his circumstances. I am in a position where I can wait for my money, others cannot.

The big difference in this industry, in comparison to others, is the time lag between performing the service and receiving compensation for it. How many plumbers, electricians, roofers, appliance repairman, etc, perform the work, then wait until the end of the month to send you a bill? Damn few, I'm thinking. Sears repair, you pay at time of service. Our local electrician, you pay at time of service.
__________________
Neill Prater
Dependable Mowing Service
Reply With Quote
  #8  
Old 06-16-2012, 04:04 PM
clydebusa's Avatar
clydebusa clydebusa is offline
LawnSite Bronze Member
 
Join Date: Feb 2010
Location: Tulsa Oklahoma
Posts: 1,645
Quote:
Originally Posted by Duekster View Post
I am going to suggest that perhaps you actually have a revenue problem which is made worse by cash flow.

If the revenue is there, you should be able to hit a rhythm even with the 30 to 60 day lag in cash flow.
Reply With Quote
  #9  
Old 06-16-2012, 04:07 PM
clydebusa's Avatar
clydebusa clydebusa is offline
LawnSite Bronze Member
 
Join Date: Feb 2010
Location: Tulsa Oklahoma
Posts: 1,645
Quote:
Originally Posted by yardguy28 View Post
I can't imagine a successful LCO can't make it on monthly invoices. I realize I'm solo so overhead is diff for me but still.

whenever I think of money in life in general it all comes down to how you manage it. talk of needing cash flowing weekly or all 12 months to me says bad managing of money.

we should all be able to have our clients pay us all for the entire season up front and be able to go the whole year without a single check. likewise we should be able to accept monthly invoices 9 months out of the year and be fine the other 3.

it's in how you manage your money. you receive the same amount whether it comes weekly, bi weekly, monthly, yearly.
Reply With Quote
  #10  
Old 06-16-2012, 04:23 PM
easy-lift guy's Avatar
easy-lift guy easy-lift guy is online now
Sponsor
 
Join Date: Aug 2011
Location: Venice, FL. USA
Posts: 2,195
My contract had all of my accounts pay in advance for year round service. If my account was 5 days late I would call and remind them they were past due. If any customers had issues with my terms, they new all other Landscape maintenance firms had the same terms. At least that is how I trained my accounts, it worked fine for me.
easy-lift guy
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 06:04 PM.

Page generated in 0.07056 seconds with 7 queries