Billing

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.

    Thanks
     
  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.
    Posted via Mobile Device
     
  3. kbrashears

    kbrashears LawnSite Senior Member
    Posts: 761

    I can't imagine giving 10% off for prepay. How can you make that up? Unless you start off 8% too high...lol
     
  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: 761

    However the customer wants.

    Single
    Double
    Quartly
    Monthly
    After each app is the most common.
     
  7. jbturf

    jbturf LawnSite Bronze Member
    Posts: 1,414

    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: 789

    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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