Annual,,,means money all year for me!

Discussion in 'Lawn Mowing' started by Husky, Apr 23, 2004.

  1. Husky

    Husky LawnSite Member
    Posts: 176

    Have you guys had experience with anual payment plans with residential customers? Since I"m thinking of going full time,, this makes perfet since to me,,,

    Do you guys offer pay as you work plans,,,or annuals,, or a combination?

    What works for you, and y?
     
  2. ealbertson

    ealbertson LawnSite Senior Member
    Posts: 256

    I would much rather get paid when I do the work or by the end of the month anyway. As far as getting paid in the winter I just put money back for the off season.
     
  3. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    I offer annual plans [12 equel monthly payments] on some of my full maintenace contracts, and the customers love it becouse it keeps there cost down. I also do a monthly for new customers that require they pay in advance each month. And if its only 1 cut its cash and expensive, sorry your mwer broke or you were out of town but now its pay up time. I personally like the 12 month plan becouse it does give you income in the winter, but you better know your customer and have a very good contract and attoney in case you need it. The trouble with the 12 month plan is you can get screwed out of alot of $$ if your not careful.

    Mac
     
  4. specialtylc

    specialtylc LawnSite Bronze Member
    Posts: 1,656

    I have one large customer that pays us 12 equal payments. Its great. I dont think I could get Res. to do that.
     
  5. prizeprop

    prizeprop LawnSite Senior Member
    Posts: 820

    12 month payment plan is an interest free loan to your clients. collect it within a month after work is performed and have discipline to budget your account to get though the lean days. you should collect the interest in your bank account not the client who had you perform a service. you also don't find out who the deadbeats are until its too late!!!!!!!!
     
  6. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    Sounds good but my residentials that are on the 12 month plan are paying an average of close to $500 a month so there not the average residential customers. It has nothing to do with disiplining my budget, its the difference between having these account or not having them.$3000 a month in the winter for doing nothing is awful nice. These are not dead beat customers and with a good contract you can always collect, thats what contracts are for, to insure you get your money. Many ways of doing it.
     
  7. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    I've got 12 month contracts, but it includes the snowplowing as well. I figure in 24 mowing times, the fertilizing, weed control, an average of 17 snowfalls, what I would charge for each of these and then divide by 12. Commercial places like it because they can put in a yearly maintenance fee.

    Since I don't have any employees, I'm not worried about paying out more wages for too much snow, I'm just out the extra fuel since I'm not doing anything else.

    It's nice when you have 2-3 months of no snow and you still get all the contracts in.
     
  8. specialtylc

    specialtylc LawnSite Bronze Member
    Posts: 1,656

    They pay me for 3 months before I even set foot on their property. So who is being trusted here. Me or them?
     
  9. EastProLawn

    EastProLawn LawnSite Bronze Member
    Posts: 1,110

    Perfectly said Specialtylc, I feel the same, I get paid for Dec., Jan., Feb. and most of March before I even set foot on their property and cut a blade of grass, I don't call that an interest free loan, I call that the very fast nickel. I love making fast nickels instead of slow dimes.:D
     
  10. AztlanLC

    AztlanLC LawnSite Bronze Member
    Posts: 1,046

    Around here a contract price is a must because all the weather conditions, if you are out there to do a dependable and profesional job, then you know spring and fall will take you as much as twice the regular time and then come summer and the grass just doesn't grow for all the heat and lack of rain, are you willing to gamble with that? not me I pay my insurance, rent, loans and all the other stuff no matter if I'm busy or not.
     

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