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Customers paying

Discussion in 'Business Operations' started by Matt's Mowing Service, Jan 8, 2012.

  1. Matt's Mowing Service

    Matt's Mowing Service LawnSite Member
    Posts: 34

    How do you guys communicate to new customers on how they need to pay you? Do you have them pay monthly or weekly and do you bill them or trust them to keep up payments? How is the best way to do payments?
     
  2. Jimslawncareservice

    Jimslawncareservice LawnSite Platinum Member
    from mn
    Posts: 4,128

    I bill monthly for mowing and those types of jobs. Sometimes if I hear they are poor payers or get a vibe they prepay for a year. Landscaping is at least 1/2 down. I tell everyone and make it clear when and how I get paid.
    Posted via Mobile Device
     
  3. smallstripesnc

    smallstripesnc LawnSite Senior Member
    Posts: 706

    I am glad someone asked this. I have been curious to how others deal with customers paying.

    Up to this point I have just had every customer pay on the spot and it makes it hard because I have to show up at a certain time and can't really get a route going in turn losing money because of the time I'm losing between properties.

    So now I am going to try to get everyone to pay monthly.
     
  4. Jimslawncareservice

    Jimslawncareservice LawnSite Platinum Member
    from mn
    Posts: 4,128

    A company here bills weekly. I think that would cost quite a bit after a while with stamps, paper and envelopes. Also you need to be in the position financially to bill monthly.
    Posted via Mobile Device
     
  5. GravelyWoman

    GravelyWoman LawnSite Member
    Posts: 75

    I email a monthly bill to the majority of my customers. They all pay within 10 days. The others, that don't have an email address, I keep their credit cards on file and then charge the card at the end of the month. I have very few slow payers! Landscaping jobs I require 1/2 half down and then full payment when complete.

    Thanks!
    GravelyWoman
     
  6. mowerbrad

    mowerbrad LawnSite Fanatic
    Posts: 6,273

    Everyone is different, some people bill at the end of the month, others require customers to pre-pay for the month and some will collect weekly. I bill at the end of the month and have the invoices due on receipt, unless otherwise noted/discussed.

    When you first take on a new customer, make sure to discuss with them your billing terms. If you don't have a service agreement/contract, you may want to print something out that outlines your payment policy. The least you can do is at least mention your policy to the customer when you first talk with them.
     
  7. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Posts: 8,844

    For mowing, I bill monthly. Bills sent last day of month, due 15th of next month. 10 day grace before cutoff of service. Seems to work well.
     
  8. ringahding

    ringahding LawnSite Senior Member
    Posts: 613

    Monthly billing is the best way for established LCO's. Collecting emails for us is like having a business card ready to hand out, in other words it's a must have! Get viral.
     
  9. xclusive

    xclusive LawnSite Bronze Member
    Posts: 1,052

    I invoice everything at the end of the month with payment due in 15 days. All my client sign an agreement and payment instructions are included. The only time I do not invoice at the end of the month is when we do a landscape job like plantings, pavers, retaining wall etc. I then set up a payment schedule with the balance due upon completion.
     
  10. DuallyVette

    DuallyVette LawnSite Silver Member
    Posts: 2,904

    I use to bill at the end of the month and stamp "due upon receipt" on it. The checks would slowly come in for the next four weeks. so I changed my plan.I send a bill for the month of December, on December 23, and its due on January 1. Many of the checks come in before the 1st Many people sit down at or near the 1st of the month to pay bills. I want them to have my bill in their hand at that time. If I send the bill out after the 1st, the checks dribble in slower.
     

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