1. Missed the live Ask the Expert event?
    Not to worry. Check out the archived thread of the Q&A with Ken Hutcheson, President of U.S. Lawns, and the LawnSite community on the Franchising Forum.

    Dismiss Notice

if 12 month month is NOT a good option,

Discussion in 'Business Operations' started by 205mx, Jan 19, 2014.

  1. Exact Rototilling

    Exact Rototilling LawnSite Fanatic
    Posts: 5,354

    Just for the sake discussion...how about If you grease the skids on your 12 month plan and if you didn't have to mail/email a bill the client agreed to mail you a check at a 2% discount. No credit card fees to deal with.

    Maybe better yet to further grease to skids as an incentive 5% off the set monthly fee if the payment show up 25-30 days early before services rendered. 5% prepay discount. Again check only no credit card fees to absorb and no billing to mail/email.

    When most people rent an apartment or house...they automatically send or drop off a check correct...?

    Posted via Mobile Device
     
    Last edited: Jan 20, 2014
  2. 205mx

    205mx LawnSite Silver Member
    Posts: 2,339

    For my 12 month terms I usually have credit card on file and run it on the 2nd-5th for the following month.
    Posted via Mobile Device
     
  3. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Posts: 2,715

    Another consideration is budgeting on the clients part. Especially with commercial/hoa's wanting services in their scope done for x per season. We only have a few per cut customers left, the rest are happy with monthly payments and knowing whatever needs to be done will be done within their budget.
    Posted via Mobile Device
     
  4. Exact Rototilling

    Exact Rototilling LawnSite Fanatic
    Posts: 5,354

    Are talking flat level monthly payments?

    What is the percentage per CC...?

    I don't mind doing that for the full rate but I'm trying to make my life easier on the book keeping end...my least favorite part of the job.

    Just seems that putting the burden and Reward on the client to make sure the payment get to me or the full rate if late would be appealing to some...?

    No bill sent end of month client makes sure I get check on time. 2% maybe 2.5% off.

    25-30 in advance 5% off. I just record accounts paid and take checks to the bank.
    :)
    Posted via Mobile Device
     
  5. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Posts: 2,715

    We've never had a problem with late payment. Most are eight month contracts, they like it because it spreads spring and fall work over the eight months.

    Twelve month contracts are broken down to summer and winter budgets.
    Posted via Mobile Device
     
  6. Exact Rototilling

    Exact Rototilling LawnSite Fanatic
    Posts: 5,354

    So winter monthly amounts are different than the 8 month growing season?
    Posted via Mobile Device
     
  7. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Posts: 2,715

    They weren't, one needed a separate po for winter budgeting. Another was spread out over the twelve months and they decided to change it last year. Don't really know why but it comes out the same at year end.

    It can be spread out however depending on what they're customer wants/requires.
    Posted via Mobile Device
     

Share This Page