Discussion in 'Pesticide & Herbicide Application' started by Ben Harris, Apr 28, 2013.

  1. Ben Harris

    Ben Harris LawnSite Member
    Posts: 52

    What is the standard billing practices for customers on annual lawn treatment plans?

    I see Weed Man & TruGreen offering monthly bills, do they just add
    cost per service then divide months on plan?

    Or do you just bill per service.

  2. LawnsharkMB

    LawnsharkMB LawnSite Senior Member
    Posts: 582

    I add up the total planned applications for the year and offer the customer 10% off if they pay the full amount up front. Those that don't I bill after each application.
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  3. kbrashears

    kbrashears LawnSite Senior Member
    Posts: 763

    I can't imagine giving 10% off for prepay. How can you make that up? Unless you start off 8% too
  4. LawnsharkMB

    LawnsharkMB LawnSite Senior Member
    Posts: 582

    I know from the start only a handful of customers will do it. It's not like 40 customers are getting 10% off. This year I offered irrigation start up along with it for a "discounted rate" that more than made up the difference.
    Posted via Mobile Device
  5. Ben Harris

    Ben Harris LawnSite Member
    Posts: 52

    How do you bill?
  6. kbrashears

    kbrashears LawnSite Senior Member
    Posts: 763

    However the customer wants.

    After each app is the most common.
  7. jbturf

    jbturf LawnSite Bronze Member
    Posts: 1,433

    I offer prepay or invoice after service only, personally I see too many issues with monthly billing--
    such as more work for us sending more invoices/statements, office supplies + postage, offering essentially credit
    terms to people - we are not banks, potential issues if customer cancels for whatever reason
  8. ted putnam

    ted putnam LawnSite Platinum Member
    Posts: 4,539

    We print invoices for each application and usually leave them at the door. Everyone gets an invoice. Those who have prepaid have a negative balance and get no envelope with their invoice. Those who haven't get an envelope as well( pre-printed with our address). I usually offer a 5-7% prepay discount but this year I offered 10% for a couple of reasons. I usually have about 15-18% take advantage of the discount for various reasons.This gives them a good deal and gives us much needed cash on the front end for getting out the door We have enough of a customer base that cash flow stays pretty steady as long as production does. We try to stay on about a 7 week rotation.

    It works pretty well for us.

    We are a tad bit higher priced than our competition but that doesn't seem to affect us.

    We have grown by about 25% this year. and 100% of that has been through referrals.
  9. mikesturf

    mikesturf LawnSite Senior Member
    Posts: 795

    I send an invoice for 1/2 of the years work with the yearly service agreement in Feb. They send me 1/2 of the year's payment in before I start working. The 2nd payment is mid Oct with my final app. I would rather spend my time do apps than accounting during the growing season. 10% of my customers pay in full in spring-no discounts here tho. Never had a complaint.

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