How to collect residential

Discussion in 'Lawn Mowing' started by NBurke3652, Dec 11, 2007.

  1. NBurke3652

    NBurke3652 LawnSite Member
    Posts: 24

    This upcoming year will be my true 2nd year in business and I am wondering what the best way to collect from all my residential customers would be. Whether it is collected on the spot after service is completed and if they are not home than leave them a bill or bill them monthly? I'm hoping that the experienced have found the best and least stressful way to collect from residential and can help me out.

    Also I know that cash is great in some cases but do you all prefer for residential to pay with check at all times and go ahead and get taxed or if cash is available jump on every bit of it?

    Thanks,
    Nick
     
  2. Team-Green L&L

    Team-Green L&L LawnSite Bronze Member
    Posts: 1,776

    It took getting "burnt" a couple times before I made a habit of this practice, but get a CC or debit card # on all active accounts. If they don't want to give out that info then they should pre-pay for services. The best way to deal with delinquent accounts is not to have them or allow the opportunity to exist.
     
  3. TXNSLighting

    TXNSLighting LawnSite Fanatic
    from DFW, TX
    Posts: 6,462

    we do monthly billing. has worked great until this year where a few people fell behind.
     
  4. troblandscape

    troblandscape Guest
    Posts: 0

    Monthly billing, due in two weeks or 10$ late charge. Works great.
     
  5. LawnSharks

    LawnSharks LawnSite Senior Member
    Posts: 300

    Monthly billing works best. This past year we saw 85-90% of our accounts move to on-line monthly payments through their banks. This is great because 90% of your money comes in one or two days, usually on the 4th or 5th of the month. Then, you only have to worry about those few accoounts that still cut the old snail check. We always advise our customers to set us up on auto payment AND get a credit card on file in case something happens.
    Good luck.
    jeff
     
  6. procut

    procut LawnSite Bronze Member
    Posts: 1,853

    Monthly billing for all services rendered during the previous month. Some people will argue with this methood, but for me it has worked great. Have only had only two problems in six years. Be prepared for the occasional late payer, though.
     
  7. mojob

    mojob LawnSite Senior Member
    Posts: 515

    Put the bill in the door on the last cut of the month. Works great and no postage.
     
  8. Lawn-Sharks

    Lawn-Sharks LawnSite Senior Member
    Posts: 912

    i do monthly billing on the 15th of every month. been lucky so far no problems with getting my money
     
  9. NBurke3652

    NBurke3652 LawnSite Member
    Posts: 24

    what about cash from residential? or should i just go ahead and get taxed ?
     
  10. NBI Lawn

    NBI Lawn LawnSite Member
    Posts: 135

    I do monthly. After 14 days of sending the bill if I dont recieve payment I stop mowing. When they finally pay it needs to be bagged so I get to charge them extra for bagging. Works out well, they all know my policy so it is no big suprise to them.

    I had one lady this summer that got way behind on her bill. I kept on mowing it for like 3 months because I do the neighbors so I just crossed my fingures that she would pay. Just got a check for $1,330. I guess it paid off after all. Although, I didnt do a clean up so now I will have a heck of a job in the spring but she will have to pay extra if I am there longer.
     

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