Billing help

Discussion in 'Business Operations' started by Frontier-Lawn, Aug 24, 2005.

  1. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,949

    ok i currently bill one month ahead, and its a pain in the but. so im switching to billing after the month is over. my question is what should i ask for upfront. one cut? one month? help please
     
  2. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,949

  3. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Posts: 1,759

    I bill on the 20th of the preceding month. Money is due by the 10th of the next month (the month in which services are provided) anything after the 10th is entered into my gopher pro program as late and a $15.00 late fee is tacked on to the next months service.

    this past 20th I had billed for the complete month of Sept. Some money is allready flowing in from Sept....some will come in early sept...some mid sept and about 10-20 will pay at the end of september and get a nice late fee!
     
  4. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    Whats hard about billing in advance? And if you dont want to do it, but want to get one cut or one month up front, what has changed? How is it easier to get screwed, billing in advance or at the end?
     
  5. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,949

    the reason i ask is i have a few customers that starting in dec, ending in feb want cut as needed due to no rain that time frame. how would i handel the billing then.
     
  6. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    You tell them and have it in writing on your estimate sheet that this is a flat monthly rate all year long. And when you go there at least do something like edge and blow, take the weedeater through the lawn looking for high spots, ect. Then they feel they are getting something for their money. And if you have a customer that pays $100 a month and they are talking to you saying I pay $25 a cut for... Stop them right there and tell them its not per cut, or per week, or per visit, it is per month the same all year long. It may take a bit to figure how to get it accross to them best, but it can be done. And you always get your money.
     
  7. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,949

  8. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    All new customers get a variety of information when we start ..... one letter is a "Concept of Monthly Billing"

    Monthly Billing Structure:

    General Cash Flow is a concern for the immediate and long-term health of any business. A true understanding of the yearlong commitment with month payment breaks down to 42 visits per year. What we wish to do is spread the cost of “per visit” through out the year so in the wintertime we have steady cash flow.

    An Example:
    Mr. Doe has a normal home in Merritt Island and wishes to have lawn service; he has received a bid for $70 per month. This breaks down to $20 per cut ($20 x 42/12 = $70). This means in the Summer Months when he will receive 4 cuts yet only pay $70 not $80 and in the Winter Months he may only receive 2 services yet still pay $70. We must keep in mind that there will be 3 Summer Months when he will receive 5 cuts and 2 Winter Months when he will receive 3. November thru March he will receive bi-weekly service and April thru October he will receive weekly service, yet what he is truly paying for is 42 visits per year.

    An Example:
    Ms. Ann has a mid size home in Merritt Island and wishes to have lawn service; she has received a bid for $ 85 per month. This breaks down to $25 per cut ($25 x 42/12 = $85). This means in the Summer Months when she will receive 4 cuts yet only pay $85 not $100 and in the Winter Months she may only receive 2 services yet still pay $85. We must keep in mind that there will be 3 Summer Months when she will receive 5 cuts and 2 Winter Months when she will receive 3. November thru March she will receive bi-weekly service and April thru October she will receive weekly service, yet what she is truly paying for is 42 visits per year.

    Another Example:
    Mr. & Mrs. Smith has a larger lawn as well as more edging & weed eating areas; they also wish to have hedging performed 4 times è spring, twice-in summer than a fall trim. They have received a bid for $ 105 per month (which is $30 per cut) just for the lawn. The hedging would be $40 per event or $160 per year when added with lawn service the monthly cost would be $120 (we round numbers up to make billing & payment easier)


    These are only examples but it breaks down the bidding process. Using our hourly rate in relation too the estimated time needed to perform a task or job than multiple these by 42 and divide by 12, which gives what we will bid the monthly price at.

    We can include services such as Hedging or Spraying of Weed Killer with monthly billing or bill separate when performed. We always bill extras such as spring clean up hard trimming of hedges, crepe myrtles, ornamental grasses, mulch, flowers or palm trimming when they occur.
     
  9. Maitland Man

    Maitland Man LawnSite Member
    Posts: 175

    .......................I do as lawnman does. It's a consistant schedule(customers love that!) and it makes the visits easier all winter long instead of skipping a week and coming up to a big mess of leaves, sticks, or taller grass.

    Dennis
     

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