Payment Plans

Discussion in 'Business Operations' started by Kawizx62003, Aug 24, 2014.

  1. Kawizx62003

    Kawizx62003 LawnSite Silver Member
    Posts: 2,404

    Just doing some brainstorming. I recently gave an estimate for a mulch install. I have done another "other than mowing" job for this customer recently. I gave him an estimate for $300. He said he would do it but it would not be right away, citing financials. I am trying to pick up the extra jobs to stock up for winter. I want to secure this job NOW for peace of mind.

    Normally, I would do it and charge their on file credit card. Would it be smart to offer a payment plan? I already have him as a weekly client. So maybe divide the mulch job into 4 payments and add on the payments to the weekly mowing bill and charge the card. The first would cover material, which would be a few days after the job (when I mowed). I could do this as a down payment too.

    Thoughts?
     
  2. Ditta&Sons

    Ditta&Sons LawnSite Bronze Member
    Posts: 1,495

    if youre the 'go to guy' for landscape work at his house, i wouldnt be stressed out about getting the job, he'll most likely get it done when he has the money. but your idea of a payment plan is fruitful and i would mention it to him
     
  3. xstatikplus

    xstatikplus LawnSite Senior Member
    Posts: 294

    I agree with this^^^^

    If first payment covers materials and you can float labour costs why not right? If it's a regular costumer of yours he isn't gonna go to anyone else if you offer a payment plan with him.
    Good luck
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  4. Kawizx62003

    Kawizx62003 LawnSite Silver Member
    Posts: 2,404

    Thanks for the replies. I think I will offer it just to see if it makes the sale sooner than later. Yeah I highly doubt they will go to someone else. Very loyal so far. Just hate having open estimates! Want to turn them into jobs, but wont drop the price to do so. So I am trying to think of other ways.
     
  5. Dr. Cornwallis

    Dr. Cornwallis LawnSite Senior Member
    Posts: 847

    I wouldn't offer a payment plan on a $300 job... That's not that much money. On a $10k job.... Maybe. I don't like the idea regardless though, it seems like I would be out a fair amount of money in the mean time and the client could potentially put the screws to me pretty well.
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  6. RedSox4Life

    RedSox4Life LawnSite Bronze Member
    from Mass
    Posts: 1,412

    Why would you give him a payment plan when he's paying with a card? Let the cc company wait for the money, not you.
     
  7. Kawizx62003

    Kawizx62003 LawnSite Silver Member
    Posts: 2,404

    Good points. Technically could be a debit card too. Not sure what they have on file, but that would make a difference. And no its not that much money, thats why id be willing to do it. Although in a "mow and go" operation as I am for now, that is like having a weekly customer for 10 or so weeks. that Just getting started in up selling.
     
  8. ilike2mow

    ilike2mow LawnSite Bronze Member
    Posts: 1,032

    Offering a payment plan might allow you to secure the job.

    I agree with the thought that 300 dollars isn't much for payments.
     
  9. Patriot Services

    Patriot Services LawnSite Fanatic
    Posts: 12,444

    He's using a credit card? That's already a payment plan. I wouldn't spend my money on materials on to have to wait to recoup that just to break even and then again for your labor. This is a case of not working will be more logical.
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  10. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,250

    Why in the world would anyone loan money too someone who cant afford our services?
     

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