12 month billing

Discussion in 'Lawn Mowing' started by lawnwizards, Jan 26, 2005.

  1. lawnwizards

    lawnwizards LawnSite Silver Member
    Posts: 2,434

    i work 8 to 81/2 months a year and i was thinking of converting all of my customers to 12 month billing. does anyone use this method? if so, how did the customer take it and is it working? thanks. :waving:
  2. Brianj

    Brianj LawnSite Member
    Posts: 196

    i bill 12 months out of the year. now i do work 12 months out of the year too.. well sorta, i m usally off about 2 days week in the winter and start about 9 and work to about 3 on the other 3 days.. my people like the year around Billing makes it easier on there monthly budget. just make sure u can make money per month on them in the summer when you are working your butt off. so that the winter is gravy.
  3. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I just started billing 12 months on a flat rate plan on some customers, not all, and the reception has been mixed. The biggest concern that customers have is, why should I pay for services during the winter months when you are not doing any work? Sometimes it's hard to explain to them the pros of the 12 month billing cycle
  4. derek1

    derek1 LawnSite Member
    Posts: 112

    Would you want to stretch your money out over a course of 12 months verses having it in hand yourself that way you can rely on your own budgeting. You know sometimes people when they are going through hard times they stop paying the lawn people. Just a thought!
  5. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Posts: 2,128

    I have tried billing on a 12 month cycle on some of the clients I knew would appreciate it and like this system. They all seemed to like it. There are some clients though who just can't get it through their heads that they will be paying the same amount per year whether they go to 12 month billing and have lower monthly bills or if they pay by the month and have higher monthly bills. That is why I give my clients the option. I do make sure all clients who want a 12 month billing cycle sign a contract for the 12 months where in a month to month billing situation I do not require a contract.
  6. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I actually give customers a 5% discount for signing up for a 12 month flat rate plan. It gives them a discount, but I will receive money during the winter months when times are slow and money is slow
  7. Blessed 1

    Blessed 1 LawnSite Senior Member
    Posts: 516

    I do a 11 month pay plan and offer December skip payment because NOBODY likes to pay bills in December!
  8. 1st impressions

    1st impressions LawnSite Member
    Posts: 58

    I agree with Derek1. I feel you will open yourself up to being screwed by someone who might be in trouble financially. You will probably find yourself last on the payment schedule.
    Maybe it would be better to start a savings account and put $100 a week in for the 35 or so weeks that you are working. This should net you about a $1000 a month for the 3 .5 months you are not working.

    Good luck!
  9. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    I've said it before, and I'l say it again. It's better to get the customer's money sooner than later. Why put yourself thru maybe having to chase around payments in the dead of winter? Have any customers that are late on their bills during the season, just imagine how late they will be in the winter.
  10. ofishil

    ofishil LawnSite Member
    from TX
    Posts: 124

    i have a few monthly but for the most part everyone is per cut. i personally like the monthly thing but i dont think that is the norm for here. a thing you could tell them is that you give them a discount by only charging for 4 weeks in a month. Theres 5 months with 5 weeks i think.

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