Payment Plans

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

  1. xstatikplus

    xstatikplus LawnSite Senior Member
    Posts: 294

    That is a true and very good saying :)
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  2. Kawizx62003

    Kawizx62003 LawnSite Silver Member
    Posts: 2,411

    Thanks for the back up! Yeah, Im just running things by others who have been there, done that. Thats why this forum is invaluable to me.
     
  3. Kawizx62003

    Kawizx62003 LawnSite Silver Member
    Posts: 2,411

    I appreciate all the feedback, whether we agree or dont. Just a thought: I dont think its necessarily a bad thing to want the job more than the potential customer wants it done. While I see the point of the quote, I somewhat agree and somewhat disagree. I like analogies. If I walk into a car dealership, who wants me to have the car more, me or the salesman? Is it not this mindset that attributes in some degree to successful sales? Lets get away from my original price and speak in general terms now. If I said hey I got a $10K mulch job (commercial) and they say its not in the budget until next spring, should I say OK, call me next spring? Or should I say look, I understand about budget constraints, what if we set you up on a payment plan? You can pay 25% down and 25% added to your next 3 invoices. Would this make your answers different? What if its $10K residential job, same scenario. What if you needed a new mower NOW and that 2nd 25% would buy it?

    Just food for thought. I like good conversations. Im new and I am passionate about business, customer service, and this industry. I am in for the long haul. SO far things are going great, in fact 2 new weekly customers signed up today!

    *On a side not, I can afford a $300 mulch install but it is not in my budget right now. Just because the customer does not want to do it NOW doesnt mean they dont have the means to. Smart people budget their money. What if his lawn care budget category is spent for the month of August because I sold them something extra already this month? (I did) Should I respect that may be their budget or should I push the sale a little harder?
     
  4. easy-lift guy

    easy-lift guy LawnSite Gold Member
    Posts: 3,376

    I suspect you don't want to be in the banking business. Schedule the work once the customer has the funds to pay with his CC on file and be done with it.
    easy-lift guy
     
  5. Kawizx62003

    Kawizx62003 LawnSite Silver Member
    Posts: 2,411

    Thanks again everyone. I wont be offering the payment plan for this particular job.
     
  6. PaperCutter

    PaperCutter LawnSite Bronze Member
    Posts: 1,938

    so Jim the Chevy salesman is floating you $30k for a new car? No, but he'll help you get financed if that's what closes the deal. But he's not going to be on the hook for what's in your driveway.

    If you REALLY feel like you need to offer financing there used to be companies that would allow you to offer their retail loan product to customers. That may be worth looking into.
     
  7. Kawizx62003

    Kawizx62003 LawnSite Silver Member
    Posts: 2,411


    You are taking it too literally:nono: Its "Jims Chevrolet". Jim is the owner, the salesman, finance manager, and oddly enough the lawn care man and drives a Ford.
     
  8. Glenn Lawn Care

    Glenn Lawn Care LawnSite Silver Member
    Posts: 2,647

    I wouldn't do a payment plan for $300. If you are his main guy I would just wait til he is ready.
     
  9. xstatikplus

    xstatikplus LawnSite Senior Member
    Posts: 294

    Even if it is not too literal, someone is spring you the cash and why? Because money is in it.....just say kawi says to the guy(hypothetically) "ill break down the job to 3 payments but it will cost you another 5% to do so." And the customer says "I can handle the payment plan no problem, go ahead with it."
    In 3 payments isn't he up$15 above tho quoting price? IMHO if you can't float a "loan" on work as low as $300 to put an extra $15 in your pocket. It's pretty sad.

    If you have 200 costumers that are supposed to pay you on every visit for say $45 per visit average. You tell me there is never a time where 6 of your regular customers in a week where you are not out that money for a week for those mows pay due to them not being home while you mow? Being out that cash right there pays for the in question mulch job!

    I think if a payment plan gets you a $300 job on a solid regular customers property that will get paid within 2 months at a $15 "on top of" profit.... Don't think floating the profit vs not getting the job at all is very sad. $300 is peanuts! Question is would you rather stand there with an empty jar looking for peanuts or would you rather pick up 10 to put in that jar?........if you have the hours to spare and don't mind the wait for the full pay......do it!

    Keep in mind the customer never asked for the payment plan and this is all just a hypothetical thread.
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  10. Patriot Services

    Patriot Services LawnSite Fanatic
    Posts: 12,533

    Now you're mixing collections with extending credit. You provided the cut with the expectation you were getting paid at time of service. I personaaly don't take that leap of faith. If a check is supposed to be there and its not then no service. Rather be out travel time then travel, labor and chase money time. If you let it go once you just gave permission for everytime.
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