Pay by cut or monthly bill?

Discussion in 'Business Operations' started by Lil'MowinMan93, Oct 17, 2008.

  1. Lil'MowinMan93

    Lil'MowinMan93 LawnSite Member
    Posts: 158

    I was wondering oif you guys get paid by the customer everytime you cut or do you do it monthly? I was thinking about going monthly so i don't have to stop and talk to the customers this way i save time and make more $$$. I also was making it a monthly and i come four times a month no matter what. No more no less. Basically once a week.
  2. Big C

    Big C LawnSite Bronze Member
    Posts: 1,641

    I did it on a pay per cut basis this past summer, with very poor results. Had some customers forget to put the money under the doormat if they would not be home...and then they would call me the next day and said they forgot and for me to come back by only to drive across town and the customer was gone and forgot to leave the payment again, or the other problem I had was I would show up to mow their lawn every Friday like normal and have them tell me....oh wait until next week after I receive calls from a prospective customer and told them I was booked for that!t was a nightmare. Some of my customers ran the sh!t out of me trying to pickup money that was owed to me. In '09 I am going to contracts and send invoices by mail and receive payments by mail only no money will be handled at the door....also in the process of weeding out my PITA customers to make room for good ones in '09.
  3. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    10 years ago, we did it by the cut, just grateful to have a customer.
    what a stupid mistake for us. it turned into nothing but a hassle. constantly trying to get paid, customers weren't home, customers would end up owing for a couple of weeks, then they would try to say they paid... big hassle.
    monthly billing is the only way to go in our opinion. invoices printed out at the end of every month, mailed on the 1st, and payment due by the 10th.
    works well for us.
  4. Lil'MowinMan93

    Lil'MowinMan93 LawnSite Member
    Posts: 158

    Ok cool Thanks guys.

    DLAWNS LawnSite Fanatic
    Posts: 5,778

    I do monthly billing. I have a couple of customers that insisted on paying weekly. I hate it. It's such a pain. They have all been told next year they have to go to monthly billing because I will have a cutting crew out there and as much as I trust my my guys there is too much room for error. Getting lost in the truck, did the customer forget to pay?, leaving it in their pants pocket and washing it, and so on. They pretty much all understood.
  6. JDUtah

    JDUtah LawnSite Silver Member
    from UT
    Posts: 2,636

    Monthly Debit, credit, or electronic bank charge... or complete pre-pay

    That's it. No pay my way, no play.

    That's how I get rid of headache and overhead.
  7. Green Finger

    Green Finger LawnSite Senior Member
    Posts: 839

    If you are going to build your business and you have employees, Collect as you go. This will help your cash flow.

    Yes some will be billed monthly. but you want over 70% of your customers paying you as you cut.

    If you make it a standard then the customers will abide.
  8. richallseasons

    richallseasons LawnSite Senior Member
    Posts: 479

    Who in their right mind wants to do business like that, collect by the cut ya if maybe you deal with three customers and they are home every time you mow and it is always the same time....yikes what a pain in the a$$.......
  9. shepoutside

    shepoutside LawnSite Bronze Member
    Posts: 1,205

    All mine are billed to their credit card or bank account or Pay-Pal, the day after there serviced. If they want to pre-pay a month, then that's the only other option. My area is a commuter town, so most are never home.
  10. Green Finger

    Green Finger LawnSite Senior Member
    Posts: 839

    You run your business your way. I'll run mine, my way. Just because it doesn't works for you, that's you.

    But if it works for me. Let me do my lawns. Different business models for different business men. (or people)

    at the end of the day we can all have a cold drink (soda lol):usflag:

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