Payments- Monthly / Bi-monthly / Quarterly??

Discussion in 'Business Operations' started by SW Landscape Maintenance, Feb 18, 2008.

  1. SW Landscape Maintenance

    SW Landscape Maintenance LawnSite Member
    Posts: 64

    Iv'e got mostly residential full time customers signed on a service agreement ( contract) with 12 equal payments over 12 months. Half pay on the 1st and the other half pay on the 15th of each month. So every two weeks I make a deposit.

    I was once told by another lawn care owner that the less invoices a customer receives the better and he has all his full time clients pay quarterly. Just wondering what everyone else does and why.
     
  2. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Posts: 4,909

    Quarterly would be fine if it was paid in advance. There is no way I would go quarterly billing after the service. I had a hard enough time collecting on one month after the service.
     
  3. fertguy2008

    fertguy2008 LawnSite Member
    Posts: 82

    I agree w/procut. If its in advance that's fine. Think about the customers that might not pay until the end of the quarter, you're 90 days out on supporting their lawn care needs. Then think about the ocassional customers who would decide not to pay at all and you not even realize it til you're 120 days out.
    Bill early and bill often.
     
  4. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 17,335

    Monthly, but I charge by the week because some Months have 5 days in them.
     
  5. Adam3669

    Adam3669 LawnSite Senior Member
    Posts: 311

    Wow, I've even heard of months having 30 days in them! Crazy! :clapping:
     
  6. Lawnvision

    Lawnvision LawnSite Member
    Posts: 56

    I bill residential customers monthly as the services are provided. commercial i bill using payments over 12 months, this way i have good cash flow and money in the winter months.
     
  7. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 17,335



    Well allow me to explain so all ya'all in Kansas will understand my point.

    7 days in 1 week
    4 weeks in 1 month
    28 days, so if a month has 31 days, some do, that leaves 3 extra days.

    So why should I work free for 3 days?

    Hope that helps
     
  8. dwlah

    dwlah LawnSite Senior Member
    from Argo Al
    Posts: 558

    This year residential customers have two options with me
    Pay when Im on the property or
    Invoice the end of the month due by the 15th
    I do have one commercial property that wanted to go to twelve month billing Ill see how it goes with this one this year and MAY expand it to other commercial properties next year

    Last year I had a however the customer wanted to do it (first year full time)
    Hard to keep up with 5 different billing cycles wont happen again
     
  9. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    you said some months have 5 days in them, I think you meant 5 weeks, so he was just playing with your mixup.
     
  10. PlatinumLandCon

    PlatinumLandCon LawnSite Bronze Member
    Posts: 1,315

    SW, when you say "full-time" I assume you mean snow work as well? Its a mistake IMO for companies to stretch 7-8 months of mowing into a 12 month payment cycle. Doing that puts the power with the homeowner to not pay you and get away with it easier. I've been debating going with the year-round contract but still have to look into it.
     

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