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Do I Get A Down payment?

Discussion in 'Starting a Lawn Care Business' started by bell property mainentance, Mar 17, 2005.

  1. bell property mainentance

    bell property mainentance LawnSite Member
    Posts: 4

    I am new! I have an estimate to do tomorrow for a guy that wants old mulch taken out and new mulch put in and a yard clean up. my question is that i don't or can i pay outright for the mulch , do i get a down payment? Does anyone else do down payments and for what services.

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    You should require a down payment for any work that involves your purchasing of materials. I think most customers expect to pay something upfront for landscape jobs. Make the down payment at least cover the total cost for your materials.
  3. Shane@Gautreaux's LNG

    Shane@Gautreaux's LNG LawnSite Member
    Posts: 5

    We always required 1/2 up front and 1/2 upon completion.
  4. LB1234

    LB1234 LawnSite Gold Member
    Posts: 3,210

    We do the same...make sure the downpayment covers at least the cost of materials so you are not holding the bag if they should somehow slip away. Altough, for some long standing customers or cutomers who have signed up for the seasons lawn servicing we usually will not...kinda a judgement thing.

    What we usually do for no downpayment jobs is try and work them into our credit card payment dates. Our CC company generates a statement from the 21st of the month to the 21st of the following month. So, if we do a job between the 22nd and end of the month (assuming materials are pruchased at this time also) that customer will get billed for that job for that month and yet the bill for that material will not be due until the following month. I hope I made sense :dizzy:
  5. bell property mainentance

    bell property mainentance LawnSite Member
    Posts: 4

    Thank good info. Im glad this site is here!
  6. kturf

    kturf LawnSite Member
    Posts: 184

    We always get down payment for such a service least enough to cover the cost of supplies
  7. bp418

    bp418 LawnSite Member
    Posts: 33

    I also go for a down payment 1/2 up front, the rest upon completion. Also, if they pay by check, call the bank on the check and ask them if there are sufficient funds in the account to cover the check. No fun using the 1/2 up front for materials, then finding out the check bounced across town!!!

    XTreme Lawn Care
  8. Mike TMI

    Mike TMI LawnSite Member
    Posts: 89

    I started something this year that I've never done before....

    A $90 deposit for all clients. I explained that because I bill in arrears for the monthly mowing and the first month of service is always the hardest on my business. Especially having a $40,000 payroll per month.

    Every client of mine sent it in and actually some wrote notes saying "they couldnt believe we never did this in the past".

    We still charge 50% up front on all specialty services and the remaining balance due upon completion.

    So I am all for the deposits!
  9. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I would require 1/2 up front as well.

    Perhaps once the customer is established with you, then you would do it without any money up front
  10. DLS1

    DLS1 LawnSite Bronze Member
    Posts: 1,619

    For this type of work I also have a 1 page simple contract that shows exactly what work I will be doing, materials to be installed (i.e. mulch, maple tree, etc.) and cost breakout of the work and materials.

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