Is 30 days to pay, 30 days too long

Discussion in 'Lawn Mowing' started by Port City Lawncare, Aug 12, 2003.

  1. Port City Lawncare

    Port City Lawncare LawnSite Member
    from Alabama
    Posts: 75

    I'm wondering if I should switch from 30 days to 10. I'm not necessarily having slow paying customers, as most leave the check for us the day we come, but some of the new customers are waiting until the deadline to pay up. Is 30 days the standard rate in which most LCOs give customers time to pay?
     
  2. bruces

    bruces LawnSite Senior Member
    Posts: 648

    My terms are 15 days from statement or invoice date.

    If you bill monthly and give them 30 days to pay, you could have 2 months work outstanding before you get paid (the month you billed for plus the 30 days you are giving them to pay.)

    I am considering changing to sending out half the statements on the 15th and half at end of the month next season.
     
  3. Port City Lawncare

    Port City Lawncare LawnSite Member
    from Alabama
    Posts: 75

    That's exactly what's going on Bruce. I was thinking about switching it over from 30 to 10. I just feel that 30 days gives the customer to much time to forget.
     
  4. Expert Lawns

    Expert Lawns LawnSite Silver Member
    Posts: 2,660

    I bill bi-weekly and payment is due within 14 days. For every week they are outstanding, there is a $10 late fee added. After 30 days of no payment, services are stopped. (each week i send them a letter notifying them that they are outstanding and that another $10 has been added to their balance) I've only had to do this a handfull of times thank god. Most customers are great about paying on time.
     
  5. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    mine is 18 days. I tried the whole 30 days thing about 3 years ago...very bad idea.
     
  6. Tim Canavan

    Tim Canavan LawnSite Member
    from Houston
    Posts: 218

    For all of my maintenance agreement customers, I bill on the 20th day of the month due on the first day of the next month. So for an August bill, I would bill on Aug. 20 due by Sept. 1.
    As for my customers who are not year round, I bill at the end of the month, due by the 10th of the next month. so for an August bill I would bill on Sept. 1 due by Sept. 10.
    Any one who is late by the time I bill again, I will add a 10 dollar late fee. If I do not see something by that billing cycle, service is stopped.
    I have had a huge problem with people not paying on time this year. I even got a credit card machine so people can pay me on that. It sucks when 60% of your cusomers all decide to be late at the same time.:mad:
    I even had a customer once tell me that the lawn guy is just the last guy to get paid. People will pay their cable or cell phone bill before they pay you. I told her that maybe she can't afford a lawn service if she can't pay on time. She's payed on time since then.:)

    Does anyone bill for the month up front? I am thinking about it. At least when they are late it will be like they are on time.:cool:
     
  7. BSDeality

    BSDeality LawnSite Silver Member
    Posts: 2,850

    i split my customers on the 15th and 31st. i use a net-15 pay up or get slammed with a late fee. Like you said, "oh i have 30 days to pay this, i'll just put it behind all my other bills for the month." This also provides me with a steady flow cash through the month. once i hit 30 customers i'll move to a 4 way split in billing dates and really have an even cash flow.
     
  8. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    thats a good idea for the 4 way split. I have though of it before but I just thought that it would get confusing. How do you handle with, like A-F, G-N, O-S, T-Z?
     
  9. BSDeality

    BSDeality LawnSite Silver Member
    Posts: 2,850

    i use Gopher 2003 software for my billing and scheduling and it allows me to assign customers to certain billing days. then on the 7th i'd hit the generate button and it'll print up all the invoices for the correct customers. check it out if you want here @ Gopher's Site
     
  10. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I am going to have to see whether or not my Quickbooks does that
     

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