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How Should I Bill

18K views 73 replies 26 participants last post by  cpllawncare 
#1 ·
Fellow LawnSite fellers,
I was with my father this morning and we were talking about my venture into the green industry. I started talking about how I am going to bill my clients. I think the best way to bill my clients would be to send them an invoice either monthly or bi-weekly. My father on the other hand told me that point of sale would be the best way. My father is an excellent business man. I respect him greatly. I just can't wrap my mind around how just getting money after I'm done mowing will work. I mean there is so many variables such as; client not being there, me being in a rush, weather, and many other scenarios. I need an organized system that will work well, but cater to my valued clients. I will not be legit this year either being that I will only be 17 come mowing season. So that will come into play also.
As soon as my signature becomes credible as an adult I will have all licenses etc.
Thank you all!
 
#3 ·
Monthly is way easier to track and collect. Per cut gives the customer the option of skipping service and wrecking your schedule.
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Ditto.

That and use quickbooks or some other good accounting software. In quickbooks, we bill to 90% of our clients through e-mail making it much easier.

That and I can just sit down and only take 20 minutes to do billing once everything is set up. I figured we would waist more time than that if we invoiced at each property for each visit.

............
 
#5 ·
I am just not seeing how "point of sale" billing will be effective when you have more than 10 clients.
 
#6 ·
I would say with regularly services such as our fert (we haven't done maintennce up until this coming season) 90% of our clients are not home when we are there. Of the 10% that may be home, most of those do not want us knocking on the door disturbing them unless we absolutely have to.
 
#7 ·
I have some lawns that I get paid upon completion of mowing that day...if there not home they put a check in the mail or pay for 2 cuts the next time...this way I dont have to write up bills...the rest get billed monthly
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#8 ·
I started billing at the end of the month. However, I got tired of having to bill on the 31st, then checks didnt get to my PO BOX for 1-2 weeks. Once I learned my route and accounts better I would send bills out halfway thru the month. The bills would already have all the cuts included on them, This was because I knew the accounts, and I knew which ones would always get cut. Now the client has the bill 1-2 weeks early. Some might wait until the last service is performed, and then send payment, but I noticed 80% just pay it when they get it. That definetly helps my cash flow, because its ALMOST like getting paid in advance. However, I do have a few select accounts that pay me upon each service. They were slow payers or non payers in the past. So I still service them, but must be paid before the trailer gate goes down. This is only because I have other clients on the same street, otherwise I wouldnt touch them. Hope I helped.
 
#9 ·
I am just not seeing how "point of sale" billing will be effective when you have more than 10 clients.
Agreed. Especially if you dont plan on working forever. In a few more years I dont plan on working all the time, just when a guy doesnt show up or whatever. I tell clients DONT PAY WORKERS. Thats a baddd Idea. Besides, most people arent home when were working. Maybe the trophy wives are, but they cant be bothered.
 
#10 ·
I assume you have 12 or less customers.

You live at home so you expenses are low so you will be able to build up a suitable cash reserve rather fast.

So in your case you I would collect at time of service. Many types of large business' do this.

Most of your customers will be elderly and at home. They will know what time you mow and will be home when you get there. I have had customers miss a week and catch me the next week. You won't go under getting $35 one week late.

Also had customers approach me worried that they would not be able to pay because they were going away on vacation. I told them don't worry you get when you come back.

However I have seen many LCO's get hosed over when a customer goes one month late, and before you know it the LCO has been mowing for two months and stops service for non payment, after he's done 8 to 9 mows.

Best to always keep things simple. Now when you start to get commercial accounts and they pay you by check and want to pay monthly. On those I send out an invoice the next day after the last service for that month. So that means I invoice on the 25th instead of the 31st.
 
#11 ·
I think I will just have a chat with every customer, and ask how they would like to be billed. When mowing season starts I will see how they do with the payment option of their choice, and adjust accordingly.
 
#13 ·
If you hire a plumber to come out and fix a pipe.He gets paid after he's done.If you hire a auto tech to fix your car.He's paid after he's done with the car. If you go to the barber shop,he's paid after cutting your hair.

Why on earth would you cut someone's grass and wait a month to get paid? Thats insanity. IMHO your a fool to wait 30days for payment.

I bill by the cut, for the cut. No money no cut. Your customers know the day your coming.Leave the check at the property. Gonna be outta town? Pay in advance for the services needed. That 30 BS puts your neck on the chopping block. Before you kno it its 60days and no payment. And by that time,you've cut the property 8-9 times. All the fuel/windsheild time/labor/ wear & tear on the equipment. You just lost a ton of money! At this point good luck getting them to pay for 9 cuts at one time.
 
#14 ·
If you hire a plumber to come out and fix a pipe.He gets paid after he's done.If you hire a auto tech to fix your car.He's paid after he's done with the car. If you go to the barber shop,he's paid after cutting your hair.

Why on earth would you cut someone's grass and wait a month to get paid? Thats insanity. IMHO your a fool to wait 30days for payment.

I bill by the cut, for the cut. No money no cut. Your customers know the day your coming.Leave the check at the property. Gonna be outta town? Pay in advance for the services needed. That 30 BS puts your neck on the chopping block. Before you kno it its 60days and no payment. And by that time,you've cut the property 8-9 times. All the fuel/windsheild time/labor/ wear & tear on the equipment. You just lost a ton of money! At this point good luck getting them to pay for 9 cuts at one time.
You can't compare this industry to any other in terms of payment. back when I was solo I sent invoices due on 30th of invoiced month. After I grew enough to be pickier that changed to due on the 15th of invoiced month. Now we are sitting at 286 full time customers that are all on pre-pay year round. Today is Jan 4th, I am waiting on ONLY 5 customers to pay. I'm sure they will be in the box NLT tomorrow. If not I will send a couretsy call and email. I guarantee pay per cut will have you chasing your tail to get paid. Contrary to what a poster replied your customer base will not be stay at homes and retirees. This is a luxury service that is used by dual working parent, single parent, no time for the lawn types. In other words, busy people that have more on their plates than remembering to pay the lawn guy very week. Proven fact, the easier you make it for your customers to pay you the better customers they will be. It's called service. Why wouldn't the utilities use more frquent payment systems? Because it takes time to invoice and mail every week. Another item is you dont want to be on their schedule. We never guarantee a specific time or day of week. Way too many other things happen to fall into that trap which gives the customer a reason to have missed your check. Since I know somebody else will bring this up before long. Any additional light services are invoiced and due at time of completion. Large projects and installs are 50% down and balance upon completion. Explain to the new customer your terms when meeting for first time. Mine are always " we need to paid for first months service at time of first cut", of course it's prorated if mid month. Train your customers early on, getting them to change terms after you've begun can be difficult. I know monthly is unheard of way north, but it's the standard down here. There are good and bad points to both. Think farther down the road too. Do you really want the employees handling customers checks. I can tell you most of mine wouldn't want to leave personal info laying on their front porch. The savings in toner and printing time is enough to make me not want to do it. Not a huge deal when you have 12-15 customers, pita factor comes in at about 40 and then you find a limiting factor to growing. Never build your business around the assumption that you WON'T get paid. I hear this so often you would think everybody is out to screw the lawn guy. I'm well over 20 years into this business, worked in 3 different areas and I have lost maybe a thousand in all that time to stiffs. Do what you want it's your business, we can only tell our personal experiences.:usflag:
 
#15 ·
If you hire a plumber to come out and fix a pipe.He gets paid after he's done.If you hire a auto tech to fix your car.He's paid after he's done with the car. If you go to the barber shop,he's paid after cutting your hair.

Why on earth would you cut someone's grass and wait a month to get paid? Thats insanity. IMHO your a fool to wait 30days for payment.

I bill by the cut, for the cut. No money no cut. Your customers know the day your coming.Leave the check at the property. Gonna be outta town? Pay in advance for the services needed. That 30 BS puts your neck on the chopping block. Before you kno it its 60days and no payment. And by that time,you've cut the property 8-9 times. All the fuel/windsheild time/labor/ wear & tear on the equipment. You just lost a ton of money! At this point good luck getting them to pay for 9 cuts at one time.
You are comparing apples to oranges here. I'm willing to bet that 99% of the time you call a plumber or electrician to your house, some one is home at the time of service. When you go to the barber, you are walking in their with your wallet in your pocket. The barber is not going to waste his time to collect your name and address and send a bill to you, how many one time customers run in to get a hair cut and wont be back for months if ever at all again? Be realistic hear. Getting paid at the time of service works for some lawn companies, if your clients are home or will remember too leave a check under the mat every 4th tuesday. But once you get cash flow, then waiting the extra 2 weeks for them to receive the invoice and send a check shouldn't kill anybody.
 
#17 ·
A lot of my clients are older people who are retired. They are normally home during the day and just pay me the same day. If they are not home they usually leave a check for me in the door or i will leave a invoice on the door and they pay me in a few days via mail. For commercial, bank owned & some residential accounts i always bill monthly for lawn maintenance. It is a lot easier to keep track of but its also nice to get paid when you are done. Especially if you NEED the money.
 
#18 ·
I use the Groundskeeper Pro program. It's in the neighborhood of $400 - not bad for all it does.

Billing, customer list & info, track expenses, employee wages, company info, accounts payable, estimates, ect.

I bill at the end of each month, I usually have checks coming in all month because some customers pay quick, some middle of the month, some end of the month.

I'm able to set the specific due date each billing cycle - if I want it changed. - Check it out, you may like it.
 
#19 ·
You are comparing apples to oranges here. I'm willing to bet that 99% of the time you call a plumber or electrician to your house, some one is home at the time of service. When you go to the barber, you are walking in their with your wallet in your pocket. The barber is not going to waste his time to collect your name and address and send a bill to you, how many one time customers run in to get a hair cut and wont be back for months if ever at all again? Be realistic hear. Getting paid at the time of service works for some lawn companies, if your clients are home or will remember too leave a check under the mat every 4th tuesday. But once you get cash flow, then waiting the extra 2 weeks for them to receive the invoice and send a check shouldn't kill anybody.
Good points! But just as you stated about the one time only hair cut.What about the one time only lawn cut? You've cut the lawn and now your stuck waiting on payment. I dont play that game.
 
#20 ·
I have a feeling you have to cater to the type of costumer that you are servicing for. If I have a family that is on vacation, and need lawn maintenance while they are gone, I will need payment before they leave. If I have a regular weekly customer they may be billed on a monthly basis. If I have a weekly customer, but they are not as quick to pay as my others I can work out a plan for them. I think a big thing here on how to bill is just learning how to deal with people.... Maybe I'm wrong. You guys have really helped me out! Thanks a TON!
 
#21 ·
@ Patriots services good points also.But by the time I'm at the 40 customers mark.I will have credit card #'s on file. They will be billed the day after services. I'm not gonna play the waiting game for services rendered.No way now how! That bill every month is old school thinking.In the day of Card readers for I pads/Phones/paypal ect. Technology is leaving your guys behind!
 
#22 ·
@ Patriots services good points also.But by the time I'm at the 40 customers mark.I will have credit card #'s on file. They will be billed the day after services. I'm not gonna play the waiting game for services rendered.No way now how! That bill every month is old school thinking.In the day of Card readers for I pads/Phones/paypal ect. Technology is leaving your guys behind!
Who is waiting? As of this morning all 286 customers paid for January. I have all the modern tech to give my people the options on paying. Not everybody has or uses credit cards. If you start dictating payment methods you will lose customers. Remember card swipes cost money as well. Monthly billing is hardly old school in this and many other industrys. As for the one time service, I answered that question.
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#23 ·
Patriot Services answers are right on! As for credit cards. At this point in our industry, almost all customers don't think about using them for our services. I will be one of the last to accept them. I don't want to pay someone for working for them, especially the bonus cards where it cost the vendor more.
 
#24 ·
I have a feeling you have to cater to the type of costumer that you are servicing for. If I have a family that is on vacation, and need lawn maintenance while they are gone, I will need payment before they leave. If I have a regular weekly customer they may be billed on a monthly basis. If I have a weekly customer, but they are not as quick to pay as my others I can work out a plan for them. I think a big thing here on how to bill is just learning how to deal with people.... Maybe I'm wrong. You guys have really helped me out! Thanks a TON!
You've already realized a very important aspect of this field. Customer relations is just as important as doing a good job on the property. If you can't be flexible how can you expect your customers to be?:usflag:
 
#26 ·
I've always billed monthly with Quickbooks for maintenance services at the beginning of the month following the month that services were performed, on a Net 15 day basis. If I do a significant amount of extras I will sometimes send a bill out for all services performed up to including those extras. One-time customers are treated differently...generally half due before I'll even schedule it and half at completion. I have recently changed things a little and started sending out invoices after the last cut of the billing period, especially for my bi-weekly accounts. I don't want to be bothered trying to collect with each service and have to deal with the additional administrative work. I like the idea of advance billing but I don't always know what the charge will be for any given month. I did try billing all accounts "due on receipt" one year and that actually slowed payment.
 
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