payment

Discussion in 'Business Operations' started by Dix, May 18, 2002.

  1. Dix

    Dix LawnSite Member
    Posts: 50

    Have a customer who needs yard prep & eather seeding or sod put down.
    It will be costly and I am wondering what to do so as not to get stuck if the people are slow payers. I will be subing out part or possibly all of the work.
    Is it uasual to have the sub wait to get paied until I do? Do you collect a deposit befor beginning work? When do you collect payment in full? I have been doing mostly mowing, and don't feel comfortable doing, say a $ 3000.00 + job and hope the peoply don't turn out to bee deadbeats!
    Thanks,
    Dix
     
  2. strickdad

    strickdad LawnSite Senior Member
    Posts: 544

    50% up front 50% upon compleation.... get a contract..
     
  3. mikeupstNY

    mikeupstNY LawnSite Member
    Posts: 3

    New coustomers 30 down 70% on compleation quote or estimate is our rule. 50% 50% is more the norm in this area. New lawns are where I have the most trouble colecting.
     
  4. nuthinlikeadame

    nuthinlikeadame LawnSite Member
    Posts: 8

    In California one must adhere to strict rules regarding home improvement contracts. As far as paying is concerned, a downpayment can only be 10 percent of the total project or 1000.00 whichever is less. A contractor may then set a schedule of payments but is only allowed to charge for work completed to that point. For example, you may set a schedule which allows you to be payed 1000.00+- after preparing area to be sodded, and perhaps another after installing sod for the remaining balance,(progress payments). The cool thing is licensed contractors can execute and perfect mechanics liens if the client doesn't want to pay. Just make sure you specify exactly what you are going to do in writing. The mechanics lien allows you to foreclose on a clients home and take the proceeds of the sale to pay for your service. Most times just the threat of foreclosure jerks the slack right out of them.


    Dame Landscape C-27 808111:angel:
     
  5. Dix

    Dix LawnSite Member
    Posts: 50

    Thanks guys! This realy helps. Any more comments?
    Dix
     
  6. Kent Lawns

    Kent Lawns LawnSite Senior Member
    from Midwest
    Posts: 870

    Signed Contract.
    50% down.
    50% upon completion.
     
  7. John Allin

    John Allin LawnSite Bronze Member
    Posts: 1,489

    Lots of problems doing business in California, from what I hear....
    Apparently, getting paid ain't one of them.
    I kinda like that system of getting paid. I'd go for 10% down if I had a fullproof and easy system to ensure getting all the dough in the end.
     
  8. Toatlandscape

    Toatlandscape LawnSite Member
    Posts: 69

    Get 50% up front to cover at least cost of materials. Have never had a problem if this is explained to customer. Worst that has happened I have collected the 50% when materials are delivered to job site. If you don't get something upfront you WILL get burned at some point.
     
  9. Dix

    Dix LawnSite Member
    Posts: 50

    Thanks guys! I just hope asking for 50% up front doesn't scare people off. Of course, if it does, maby I don't want them. I do think I will insist on cash, casheir's check , or money order.
    Dix
     
  10. wxmn6

    wxmn6 LawnSite Member
    Posts: 163

    Don't say to your customer that you will take $1,500 up front in cash! If you do that, they would think that you are stealing their money, and they would know that if they pay in cash, they would have no proof that they paid for it. Ask them for a check. That is how it work.
     

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