Register free!

The Green Industry's Resource Center



Reply
 
Thread Tools   Display Modes
  #1  
Old 01-23-2004, 12:23 PM
bobbygedd bobbygedd is offline
LawnSite Fanatic
 
Join Date: Nov 2000
Location: NJ
Posts: 10,188
payment in advance/as an alternative

as i get closer and closer to beginning my advertising, i am aware that this being my first season full time, i'll be advertising more than ever before, and doing many more estimates, and dealing with alot more nonsense. i have in the past come across people who want service, but will not sign an agreement. this is a bad thing. i was thinking that, if i do come accross a few of these this year, i will offer an alternative. if they don't care to sign an agreement, they can still have us, but must pay 30 days in advance. what do you think?
Reply With Quote
  #2  
Old 01-23-2004, 12:54 PM
greensummer greensummer is offline
LawnSite Member
 
Join Date: Oct 2000
Location: canada
Posts: 93
In the application business, we offer the customer a pre-payment plan prior to the season starting. This helps cash-flow which in turns helps "fund" your advertising campaign. Perhaps a variation of this can be some form of help to you. Good Luck!

BTW, custom or sport bike? Just curious........

Tommy, CBR 600 F4i!
Reply With Quote
  #3  
Old 01-23-2004, 12:56 PM
pjslawncare/landscap's Avatar
pjslawncare/landscap pjslawncare/landscap is offline
LawnSite Bronze Member
 
Join Date: Jan 2003
Location: Southern Indiana
Posts: 1,411
If thats what you got to do to cover your a$$ and not chase around for your money. I realize people can differ from location to location. Ive consider myself real lucky after reading about so many dealings others have to go thru to get paid for there work they perform. It amazes me. I can honestly say that Ive only been stiffed one time ($35.00) in over ten years. I have a couple slow payers, but about 80% of my customer base Ive serviced for 7 to 10 years and a lot are neighbers of each other. I actually send my invoices upon last mowing of the month and payment due (for existing customers) within 30 days. Most pay within 10 days. I will call if someone goes past due, but havent needed to but 4 or 5 times this past year. I am stricker with new accounts however but I (myself) wouldnt impose a pre pay on my customers. Customers (potential customers) would likely percieve prepay from a new lawncare company suspicious to the consideration of what if they dont like your service, terms or any other expecations from you (someone they dont know yet). Do other lco's in your area insist on prepay? if it is common in your area, then that the norm and go for it. If not, customers will likely try other lco's. An incentive would be more appealing. Perhaps 10% discount for pre pay.
__________________
Equipment Junkie
Reply With Quote
  #4  
Old 01-23-2004, 01:04 PM
bobbygedd bobbygedd is offline
LawnSite Fanatic
 
Join Date: Nov 2000
Location: NJ
Posts: 10,188
other companies in my area do not demand pre pay, they do not work with written agreements either. every guy around here who i mention a contract or written agreement to laughs at me and says they have never dreamed of having clients under contract of any kind. but, i'll tell you this, these same guys are always getting ripped off and constantly chasing thier money. maybe it will just be no contract no work, i'm not sure yet. i plan to see more people this year by far than any other year.
Reply With Quote
  #5  
Old 01-23-2004, 01:20 PM
fishnetman fishnetman is offline
LawnSite Member
 
Join Date: Dec 2003
Location: newport RI
Posts: 33
do you guys ever tell new customers something like,$40 pay by week $45 per week if you pay monthly.
Reply With Quote
  #6  
Old 01-23-2004, 01:21 PM
DFW Area Landscaper's Avatar
DFW Area Landscaper DFW Area Landscaper is offline
LawnSite Silver Member
 
Join Date: Oct 2003
Location: DFW, TX
Posts: 2,118
Bobby,

All of my customers signed an agreement in 2003. Everyone of them. Only one exception, and that's the one I've got the largest A/R issue with. Probably gonna have to write something off to bad debt on that mistake.

In 2003, everyone will sign a service agreement before I do any work.

Also, in 2003, everyone will pay the last month's worth of service before I do any work.

No exceptions. I simply have to get a handle on my A/R and both of these requirements are really the only way I know how.

Later,
DFW Area Landscaper
Reply With Quote
  #7  
Old 01-23-2004, 01:28 PM
naturescape's Avatar
naturescape naturescape is offline
LawnSite Bronze Member
 
Join Date: Nov 2001
Location: Southfield, MI
Posts: 1,690
I would say they must sign a contract. But tell them that they can cancel it with just 7 days notice (or longer if you want). I tell them it's for my records and for proof that they want service.
__________________
Ray
NATURE-SCAPE, INC.
"Perfection in Lawn Care"

48" Exmark Turf Tracer w/ Proslide XT -- for sale in Spring!
Tanaka 600 Edger
2 Tanaka 230 Trimmer
Makita 4 stroke equipment
Gravely 100 ProTurn 48"
Toro 48" T-bar w/ Proslide will be on the trailer in Spring 2012!
Reply With Quote
  #8  
Old 01-23-2004, 02:03 PM
Just Cut Just Cut is offline
LawnSite Member
 
Join Date: Oct 2000
Location: Michigan
Posts: 158
I have for the past 3 years I have had customers pre pay, I invoice them on the last week of the month, It is due on the 10th of the that service month, It eliminates a lot of head ache
Reply With Quote
  #9  
Old 01-23-2004, 03:07 PM
lawnman_scott lawnman_scott is offline
LawnSite Fanatic
 
Join Date: Jan 2001
Location: st pete, FL
Posts: 7,549
I dont have an agreement or contract with any except for a few commercial, but everyone pays in advance. it is not an "option", if they refuse this they will only be trouble for you. But on the bright side will make one heck of a story come July!!!!!!!!!!!!!
Reply With Quote
  #10  
Old 01-23-2004, 03:22 PM
LAWNS AND MOWER LAWNS AND MOWER is offline
LawnSite Bronze Member
 
Join Date: Jul 2001
Location: Spine of the Blue Ridge Mountains, NC
Posts: 1,131
I'll offer a prepay option to some of my customers in March, not because I'm worried about them paying, but because my $$$$ flow is at a trickle. If they prepay for 10 cuts, I'll either give them a extra cut free, not charge for the 1st fert app, or tell them I won't go up on my mowing rate (these are the accounts I had no intention of raising anyway).
__________________
LAWNS AND MOWER
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 10:19 PM.

Page generated in 0.09813 seconds with 7 queries