Monthly or per application billing???

Discussion in 'Pesticide & Herbicide Application' started by FERT-TEK, May 23, 2007.

  1. FERT-TEK

    FERT-TEK LawnSite Bronze Member
    Posts: 1,035

    Which form of billing do you find the customer prefers, per application or a budget where they pay the same price each month. This year I put my customers on a monthly payment plan and wonder if I would be better off billing per application or a hybrid of the two where the customer pays one fifth of the years cost after each application (five step program).
    As you know some of the applications can be expensive and may scare the customer off.
     
  2. ATVracer

    ATVracer LawnSite Senior Member
    from Indiana
    Posts: 346

    You should take total cost per year for the customer and divide by number of applications and bill after each application. I offer 5% discount for yearly program paid in full after the first application, several customers took the offer this year.
     
  3. americanlawn

    americanlawn LawnSite Fanatic
    from midwest
    Posts: 5,852

    Hi Dave --- here's what we have done for many years:

    1) Prepay & get a discount
    2) Pay as you go

    The only time we bill monthly is for mowing.

    The "prepay thing" has become very popular in recent years. They get a discount, it saves them a little money, & it saves them the hassle of mailing checks every 8 weeks.

    About 35% of our customers prepay nowadays. (It saves on bookkeeping too)
     
  4. Rayholio

    Rayholio LawnSite Bronze Member
    Posts: 1,461

    I offer per Tx... Or monthly (total divided by number of months, ROUNDED UP) or yearly (5% discount)

    The per Tx is for people who don't trust me yet.. the monthly is for people who respond to the SEEMINGLY low price ($30 per month vs $55 per Tx) and Yearly is for those looking for a deal...

    My customers are split almost evenly between the 3 options, and it's pretty nice getting checks in the mail in December....
     
  5. FERT-TEK

    FERT-TEK LawnSite Bronze Member
    Posts: 1,035

    I wonder if the 12 month budget seems more appealing because of the low cost each month. This year I broke my billing down over the 8 months in a Chicago growing season. but am curious what the customer prefers.
     
  6. Rayholio

    Rayholio LawnSite Bronze Member
    Posts: 1,461

    Well.. I usually push the monthly on customers in cookie cutter neighborhoods, which are more likely to be tight on money, or they are more likely to be 'fooled' by the low monthly payment... after all, that's kinda the lifestyle of the perfectly middle class person in a cookie cutter neighborhood.

    my wealthy customers are actually turned off by the monthly quote. they see it as a sudo-scam... since monthly payments in every other business include tons of interest.
     

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