Contracts/freq of billing?

Discussion in 'Business Operations' started by GarPA, Oct 4, 2003.

?

Contract billing approaches

  1. 12 equal billings

    5 vote(s)
    31.3%
  2. 10 equal billings

    0 vote(s)
    0.0%
  3. bill 1st of month for prior months service

    11 vote(s)
    68.8%
  4. pre pay with discount offered

    0 vote(s)
    0.0%
  1. GarPA

    GarPA LawnSite Silver Member
    from PA
    Posts: 2,585

    The thread we had recently on contracts made me curious how all of us are doing the billing. 12 equal? bill beginning of the month? etc...was thinking of going to 12 equal next year as that would appeal to some of the larger commercial accounts and might give us an edge when bidding on new accounts..
     
  2. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Gary

    We bill the 1st of the month for the prior month's service (that includes all services offered) for all current customers and one-shot deals. I'm not real keen on a 10 or 12 month contract billing. I definately see the advantages, but I'm not so sure the yuppies and dinks over here would be too thrilled about paying for lawn service with a foot of snow on the ground in February...
     
  3. GarPA

    GarPA LawnSite Silver Member
    from PA
    Posts: 2,585

    good point Rod...I dont think I'd do it for residential since there is some school of thought that the longer one waits between providing a service and then billing for it, the greater the chance is of not getting paid for it. I used to be responsible for a 7 figure budget in a prior life. When you are building a new budget for the upcoming year, it does make it easier for budgeting and quarterly variance reports if the yearly costs are spread evenly. Mostly thinking of the 12 equals for commercial...and oh btw Rod...its raining here and its coming your way...so what else is new
     
  4. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501


    Rain huh? Just f***ing lovely, like we need some more. And I was gonna do some fert today if I could...crapola.
     
  5. GarPA

    GarPA LawnSite Silver Member
    from PA
    Posts: 2,585

    and its been raining pretty steady for hours...so much for the forecast of "showers"...about ready to cancel all the aerations...will it ever stop this year
     
  6. AztlanLC

    AztlanLC LawnSite Bronze Member
    Posts: 1,035

    8 equal payments down her, first is send with the new contract for the upcoming season, they return the contract with a check for the first payment.

    On a side note I just love gopher for this year, since it prints in the invoices Payment 1 out of 8, two out of 8 and so on.

    Contract includes everything, Lawn maintenance Weekly, spring and fall clean up, and 4 feryilizer applications.
     

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