Monthly Billing

Discussion in 'Lawn Mowing' started by rhowerton, Jan 30, 2005.

  1. rhowerton

    rhowerton LawnSite Member
    Posts: 22

    I have a question for all the guys that have people set up on a yearly contract. Would you guys be interested in a service that did a monthly bank draft, much like the local YMCA or fitness club. Ex. You have a yearly contract customer that has an annual bill of $2400. That person would give you a void check and have $200 drafted out each month until the renewal contract came around. Each month on the proposed date (ex. first Monday of the month) the money would be drafted electronically out of the customers acct. directly to yours.The fee would be less than that of an envelope and stamp combined. Just looking at some other business options and was curious if this might work for people in our industry.
    Thanks
    Rob
     
  2. traman

    traman LawnSite Senior Member
    Posts: 712

    a lot of my customers have me on auto pay, everymonth same time i get a bank check. its so automatic i dont even send them a bill . everytime i run into one of my customer i tell them about it and more and more are starting to do it ,so they can save on stamps and envolopes
     
  3. rhowerton

    rhowerton LawnSite Member
    Posts: 22

    For the customers that don't have it, would a service like that work for you? Cost would be about 40 cents per transaction.
     
  4. traman

    traman LawnSite Senior Member
    Posts: 712

    well i dont know what the laws are with the banks in nc but down here all the customer has to do is add you to there customer pay list , and when they click the button on the date they want to pay you it just gets sent out with no charge to the customer . but like everything not all customers have computers
     
  5. TurfdudeNCSU

    TurfdudeNCSU LawnSite Member
    Posts: 76

    We charge alot on credit cards. Our maintenance customers that choose too, have signed a agreement that on the 1st of each month their card will be charged amount due for that month. Works Great for us!! We get our $$$
     
  6. rhowerton

    rhowerton LawnSite Member
    Posts: 22

    What is the general fee for the use of the credit card. .25 cents per transaction and % of transaction? I have no idea, but am curious what other drafts cost as opposed to a fixed like the one I am talking about.
     
  7. TurfdudeNCSU

    TurfdudeNCSU LawnSite Member
    Posts: 76

    I think that we pay about $10.00 per month in service, plus .10 per transaction, plus 1.35% of the sale, depending on the card and whether you swipe it or key in the number. I have found that it is well worth it, you'll be surprised by the amount of upsales we have done because we accept cards.
     

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