Billing Question

Discussion in 'Starting a Lawn Care Business' started by Mad_Russian776, Mar 2, 2008.

  1. Mad_Russian776

    Mad_Russian776 LawnSite Member
    Posts: 41

    I'm considering a different approach with billing this year. I do primarily residential work.

    In the past, I always charged per cut. With last year's drought, i'm considering charging a flat rate per month, regardless of number of visits.

    To those of you that charge monthly rates, what are the details of your billing? Do you have certain stipulations in place for drought conditions? What has been the response from your customers, both residential and commercial?

    Any tips on selling this...or anything in general to add?

    Thanks, I'm always appreciative of the members of this forum.
     
  2. fool32696

    fool32696 LawnSite Senior Member
    Posts: 991

    I just sent out notices to all of my customers that I'm changing to monthly billing. I based the price on 36 cuts. I could also use some advice on how to sell this.
     
  3. HOOLIE

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    I think it's best to just be as vague as possible. No need to offer a bunch of lame explanations about the switch. You can always address individual customers concerns as they arise.

    I did say in my letter it would help to keep costs down, and hence keep me from raising their rates each year. I am coupling the flat rate billing with automatic credit card billing, so having the predictable cashflow helps keep me from 'financing everyday purchases like fuel, equipment parts, etc'
    That's how I put it anyway.

    I don't think too many customers are concerned about the inner workings of our companies. Like if you go out to eat and the service is slow, you really don't want the manager coming out and giving you a sob story about how half the staff didn't show up, and the delivery truck was late, and so on. You just want to eat. So while it's tempting to try to explain all the reasons for the billing change, I don't think it's worth the effort.
     
  4. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,076

    With the exception of old people the selling point is simple.....the amount per month is lower and consistent since you spread across 12 months. They never need to worry abouit what will bill be this months. It helps then do auto payments just like for cable.
     

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