How are you full services accounts set up?

Discussion in 'Business Operations' started by lawnpropm, Jan 7, 2013.

  1. lawnpropm

    lawnpropm LawnSite Senior Member
    Posts: 579

    So do you set the invoices up as pay upon now or do you net them 30 days? I liked service auto pilots idea of credit cards on file and automatically bill at the same time every month, I would like to implement some sort of the same system just not ready yet. That way I could do "level billing" but still have cash flow all throughout the month. Do things get tight on you at the end of the month?
    Posted via Mobile Device
     
  2. cpllawncare

    cpllawncare LawnSite Silver Member
    Posts: 2,659

    We bill twice a month, on the 15th and the 30/31st we took the customer list and split in half by alphabetical order, it keeps cash flow going throughout the month, things always come up no matter how hard you try, so billing once a month is hard for a small operation. Crimson your saying you still service the proerties in dec jan and feb? every week or how much?
     
  3. cpllawncare

    cpllawncare LawnSite Silver Member
    Posts: 2,659

    Also don't have this as your only option but have other options as well, It's a good way to go, but you will have a hard time selling it to most people, so just have it as an option, I think I did a terrible job of selling it last year, you have to really be clear about it. we had a few that when dec rolled around and they got their bill they canceled, all of a sudden didn't remember signing up for "That" even though they had a signed agreement.
     
  4. lawnpropm

    lawnpropm LawnSite Senior Member
    Posts: 579

    To me this seems better for the business so your not having to pinch pennies at the end of the month. I also felt like I haven't been communicating with customers well. This year when someone signs up I am going to sit down with them and go over everything that is going to be done on their property before they sign.
    Posted via Mobile Device
     
  5. Crimson Lawn

    Crimson Lawn LawnSite Senior Member
    Posts: 319

    Yes, I still "service" Dec, Jan, Feb. I will go by, try to on trash day, pull there cans up to the garage door, throw away ran over news papers, put the new paper on the front patio, pick up a few small limbs or trash and move on.
    Some of my Level Billers have Snow removal estimated in. I base my Level Bill on what is average for our area. In the Winters of 09,10,11 I did more snow removal than I estimated. I 2012 I did one, started weekly service sooner but went back to EOW went the drought kicked in and it was 100 and too stupid everyday.
    I thought about invoicing biweekly. Didnt because I ended up having a lot of weekly payers
     
  6. Crimson Lawn

    Crimson Lawn LawnSite Senior Member
    Posts: 319

    cpll, on that winter service, once a month unless it snows. 12 month Level billing is same all 12 months. I dont half to go, i could sit and watch the birds but they keep me feed and warm in the winter and I sweat while they are in the A/C. If they call, I am more than happy to go do something, There is only so long I can sit before I start laughing at myself or start thinking Im still gungho about running 5 miles a day or sitting behind this
    $%#@ computer dreaming about new mowers!!! Maddening!!!
     
  7. cpllawncare

    cpllawncare LawnSite Silver Member
    Posts: 2,659

    It's a bit different here we don't have the snow option, matter of fact it's sunny and 65 here today. That was what I was thinking once a month would suffice in dec jan and feb, but when you try to sell that, it's gets really hard, people are really tightening down on their budgets now, and $200/month for a one time service for three months doesn't make sense for the avg person.No matter how you put it to them. Right now I'm looking at weekly service march thru oct then twice in nov and once in dec jan and feb for the year round customers.
     
  8. Crimson Lawn

    Crimson Lawn LawnSite Senior Member
    Posts: 319

    I know what you mean about tightening down on money and I had the same questions you did. Most will think twice about because they are heavy into you with there money on Level 12 months. By the time you get June you are into them with your service, they could fire you and deny whats left to atleast break even. It is a big trust issue so starting weekly and earning trust with your hard work and honesty will be key.
    You can do a nine month Level Pay, it will be higher though.
     
  9. CircleC

    CircleC LawnSite Senior Member
    from NW
    Posts: 309

    I have all my full service customers set up on level payment. March thru December. Trying to collect in off season is hard and most customers didnt want to pay in off months. Level paying has allowed us to get payed faster and on time. "Mow only" customers are billed 1st of the month before work is done to ensure payment. No payment by the 15th...no more mow. It has worked out great and it allows us us to budget monthly with level payments. Commercial customers are 12 month payment.
    Posted via Mobile Device
     
  10. NC Greenscaper

    NC Greenscaper LawnSite Senior Member
    Posts: 446

    I'm not sure that's accurate. In NC we have a Landscape Contractors' Registration Board. Here are the first three paragraphs of the stature:

    On and after December 1, 1975, it shall be unlawful for any person, partnership, association or corporation in this State to use the title "landscape contractor," or to advertise as such without first obtaining a certificate issued by the North Carolina Landscape contractors' Registration Board under provisions of this Chapter.(1975, c. 741, s. 1.)

    § 89D‑2. Definition.
    A "landscape contractor" within the meaning of this Chapter is any person, partnership, association or corporation who for compensation or valuable consideration or promise thereof engages in the business requiring the art, experience, ability, knowledge, science and skill to install, plant, repair and maintain gardens, lawns, shrubs, vines, bushes, trees and other decorative vegetation including the grading and preparation of plots and areas of land for decorative treatment and arrangement; who constructs or installs garden pools, fountains, pavilions, conservatories, hothouses and greenhouses, incidental retaining walls, fences, walks, drainage and sprinkler systems; or who engages in incidental construction in connection therewith, or does any part thereof in such a manner that, under an agreed specification, an acceptable landscaping project can be executed. (1975, c. 741, s. 2.)

    § 89D‑3. Application of Chapter.
    The provisions of this Chapter shall not apply to and shall not include any person, partnership, association or corporation who shall perform any of the acts aforesaid in G.S. 89D‑2 with reference to any property, so long as that person, partnership, association or corporation shall not use the title "landscape contractor." (1975, c. 741, s. 3.)

    Basically as long as you are not using and advertising yourself as a "Landscape Contractor" you can do the same work.

    I think there are laws that require a general contractors license if they are over a certain amount (30K).
     

Share This Page