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Billing Service

Discussion in 'Business Operations' started by hoyboy, Aug 2, 2006.

  1. hoyboy

    hoyboy LawnSite Senior Member
    from Chicago
    Posts: 346

    A friend of mine who also has a lawn maintenance company wants me to handle his billing for him. I don't mind it as I already do this for my own company. He will fax me his completed route sheets each day and I will enter the data and send him new route sheets every night for the next day, and then bill at the end of the month.

    What is this worth? How much should I charge him? Oh, he has about 75 customers.

    Input please?

  2. TurfProSTL

    TurfProSTL LawnSite Senior Member
    Posts: 693

    He must be a good friend to trust you with all of his account information.....

    You'll have to decide what your time is worth. Also, supplies (like paper, envelopes, toner) and postage.

    Since he's your friend, you might also want to consider what it would cost him to hire someone else to do this for him.
  3. Team-Green L&L

    Team-Green L&L LawnSite Bronze Member
    Posts: 1,776

    Your role is "data-entry and processing" correct? If so, a friend gets $45 a mh in my eyes. Stranger, upwards of $85. I'm in Ohio (think of cost of living avg. salary here is $50,000 yr.)
  4. hoyboy

    hoyboy LawnSite Senior Member
    from Chicago
    Posts: 346

    I probably used the term "friend" too liberally. He comes in to my place and buys supplies from time to time and we talk, but probably not enough to be classified a "friend."
  5. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    I would charge a % of his bill-ables this way it will be easy for him to add to his costs and as his business grows so will your income.
  6. BSDeality

    BSDeality LawnSite Silver Member
    Posts: 2,850

    I am considering doing what you're doing for my lawn mowing business next year. Subcontracting my work out for 90% and then just skimming 10% off the top for the paperwork & customer relations end of it.

    Hypothetically $1200/week of lawn cutting x 4 weeks = $4800 gross per month * 10% = $480/mo for paperwork & customer relations while I grow the installation division of my business. Seems good to me, just have to find a guy who wants to do the 90% end :-D
  7. hoyboy

    hoyboy LawnSite Senior Member
    from Chicago
    Posts: 346

    I'm just handling the billing. Nothing else. I'm thinking that charging by the customer is the best way as opposed to a %. After all, a $10,000 customer takes just as long to bill as a $100 customer.

    I think I can do it in the range of $1 to $1.50 per customer per week just to input the work and bill it. I'm not answering phones or anything, just recording jobs and incoming checks, and sending out monthly bills.

  8. Potomac Lawns Inc.

    Potomac Lawns Inc. LawnSite Senior Member
    Posts: 409

    so basically your talking about billing him 112.50 per week. Postage alone on 75 customers is 29.25 plus envolopes and paper and printer ink plus i would say about 2.5-3 hrs of labor sounds to cheap to me.

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    Do you have the time to do this? Or could you make more money (I think you could) working on building your own business?
  10. hoyboy

    hoyboy LawnSite Senior Member
    from Chicago
    Posts: 346

    To answer both questions...

    I would bill him for out of pocket costs, such as postage.

    And yes, I have time to do it. That would not be a problem at all.


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