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Discussion in 'General Industry Discussions' started by FairwayLandscape, Feb 15, 2006.
on regular maintenance contracts and if yes, do people have a problem with it?
personally, I charge one month up front for any lawn or landscape maint. package other than just a lawn mowing...dont know if thats what others charge or not but it has worked for me without a problem. I let them know that the first month is a start up price to get them going on whatever they may need from fertilizer to whatever else you include in the package and it covers the initial expense on my end.
All my maint accounts are on a pre pay basis, for fixed bid accounts we get the month of labor in advance and bill for extras in the following billing cycle. For larger/hourly accounts I get a deposit equivalent to the avg estimated monthly costs. I have only had one person choose me to do work and then backed out because of the pre-pay deal. He was a contractor who probably would have not paid the finall bill whenever it occured, so It did'nt matter to me. I have been doing the pre pay method for over 10 years through different companies. I wouldnt do it any other way.
I have been thinking about starting a pre payin system. How do the customers react to this
90% of the time there is no discussion its in my introduction literature and its just how I work. If they do question it explain that I am not in the finance business. even if I send a bill on the 26th for March service I wont likely get paid until the 7th or 10th so I have at least one or two visits in already. When you bill at the end of the month your 30 days behind before you even bill out. Not a big deal if you are billing 2-3K per month but when you have employees and they have been paid already not so good to carry 20-30K for 30-35 days. Especially when all you have to do is ask for the money up front.
Excellent responses........ anybody else???..... the reason we're doing it this way, this year is we're tapped coming out of winter. We have plenty of employ to pay when we resume, but NO capital!
Full maintenance I offer a bi-yearly payment plan; first half due March 15 second half due November 15. This is as close to pre-pay as I intend to get. We do provide a 5% discount for the clients taking the bi-yearly plan, may not seem like much but on a $10k or even $4k account its enough incentive to get them to bite.
a 50% deposit on all landscaping jobs, just offered pre-pay for the season
this yr. and have 4 people intrested in that so far !!!