Flat rate monthly billing ?? HELP

Discussion in 'Starting a Lawn Care Business' started by Synergy Ground, Jan 21, 2008.

  1. Synergy Ground

    Synergy Ground LawnSite Member
    from Zone 8
    Posts: 94

    :confused:Could someone please explain this in-depth. I know its simple, but i just dont understand the full concept of it at this point. Do you only bill for the 8 Month cutting season here in North Florida, or do you base it on 12 Months, even though I probably will not cut from November to March. I would love to hear from as many of you Pros as possible so I have a full understanding of it.

    Thanks in advance :usflag:
     
  2. crazymike

    crazymike LawnSite Senior Member
    from Ontario
    Posts: 454

    I`m not sure about florida, but here in Ontario you bill for the mowing season only.

    You continue to bill them in months like september, even though the grass isn`t growing as much. But you are there picking up leaves, etc... and makes up for the time you were there cutting every week, lush thick grass. Some people like to charge for fall cleanups, but on small residentials, I prefer to charge them for a month of cutting and just keep the lawn tidy as the leaves fall. If you want to make extra money you can sell them on fall aeration, etc...

    I like to do my residential accounts by getting post dated cheques up front. If they have a problem with you at any point they can cancel the service and the remainder of the cheques. This prevents you from running around every month trying to get money.

    Of course this will be different in your area, but atleast it`s some ideas. Everyone has their own ideas on how to do it. You have to find what works for you and your customers.
     
  3. bill8379

    bill8379 LawnSite Senior Member
    Posts: 778

    crazymike do you make them sign a service agreement or contract?
     
  4. Exact Rototilling

    Exact Rototilling LawnSite Fanatic
    Posts: 5,362

    I like that idea, . . . but in the US post dated check can still be cashed. Is it different in Canada?
     
  5. RedWingsDet

    RedWingsDet LawnSite Gold Member
    from Detroit
    Posts: 3,556

    how so? when I have tried to do this, even a day early, they wouldnt cash it.
     
  6. bill8379

    bill8379 LawnSite Senior Member
    Posts: 778

    Can't cash a post dated cheque in Canada until the due date.
     
  7. Grits

    Grits LawnSite Silver Member
    from Florida
    Posts: 2,994

    You will occasionally cut between November and March. Where city are you in?
    This year I am implementing a 10 month billing system. Based on the average weekly cuts of 35 per year. First invoice goes out Feb. 15th due March 1st for March services. And the last goes out Nov. 15th due on Dec. 1st. It just keeps the payment the same month to month and I will have income coming in during some of the slow season.
    I do the same with bi-weekly accounts except it is based on 20 cuts per year.
    If I happen to cut during the "off" months then payment i due at time of service. Hope this helps.
    BTW, I am having all customers sign service agreements.
     
  8. Synergy Ground

    Synergy Ground LawnSite Member
    from Zone 8
    Posts: 94

    Thanks for all the help. This has explained it much better than some of the other Post I have searched.

    Thanks Again,

    Synergy Ground Works LLC
     
  9. crazymike

    crazymike LawnSite Senior Member
    from Ontario
    Posts: 454

    yes

    and if they purposely try to screw me for money, I will lean their house and charge an extremely high interest rate on the lean. It costs nothing and it's kind of like having an investment. They cannot sell their house until the lean is lifted.

    I don't do this on all customers. If a customer is sick, etc... and can't pay their bills, or if they simply forget and make an effort to pay. But if I get somoene who is outright trying to screw me for money I go straight to the govn't office and register the lean.

    Also, you cannot cash a post dated cheque early in canada.
     
  10. Myk

    Myk LawnSite Member
    Posts: 138

    I would like to had a question....I been charging per cut mowings since I been in the buisness this coming season I'm trying the monthly rate. my question how do you guys figure the price for a monthly rate? I have been just taking the price per cut times by number of cuts last year then divide by 7 months. If anyone has any easy way to figure price per month please share thanks.
     

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