Per Cut, Monthly, Yearly...What's your take on it?

Discussion in 'Lawn Mowing' started by MDLawn, Dec 3, 2012.

  1. Here, in Florida, I will take on nothing but monthly billing. Per cut people here are cheap and generally have no money. I like to be busy year round, and that comes from people that have properties that require monthly billing.
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  2. MDLawn

    MDLawn LawnSite Bronze Member
    Posts: 1,284

    Would anyone not take full payment up front? Would you offer a discount for it?
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  3. Landscape Poet

    Landscape Poet LawnSite Gold Member
    Posts: 3,638

    Will ALWAYS take money up front - discount = no
     
  4. Landscape Poet

    Landscape Poet LawnSite Gold Member
    Posts: 3,638


    Money Mgmt is not the issue....the issue is your income is controlled by the customer and the weather, those two factors can limit the amount of money your gross ...no if's ands or but's . You are limited to what the God's give you with a per cut basis.

    Now can you plan a good strategy with your money - sure - it is advised I would think - but what happens when during what is typically your busiest time of the year there is a drought...and your income is down 75% vs a regular year...does that make sense to you? Does that sound like a sound business plan to you?
     
  5. MDLawn

    MDLawn LawnSite Bronze Member
    Posts: 1,284

    I agree with your thought process. People are completely focused on payment rather than total cost. However I don't like "bankrolling" larger things like mulch or clean up jobs. If they walk you're out on the non repeating services.
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  6. MDLawn

    MDLawn LawnSite Bronze Member
    Posts: 1,284

    This is the potential problem and the reason for initiating this thread for discussion.
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  7. Landscape Poet

    Landscape Poet LawnSite Gold Member
    Posts: 3,638

    I am sure if you put your brain to it there would be a way to still make it appealing to the customer and not extend your risk, especially with a well written contract if you feel the need. Contract or not IMHO the most important thing is how you feel about the customer - are they a risk? If so and you do attempt this with them - then their cost should be higher correct. No different than the bank would treat you if you had missed payments on something and then was applying for a new loan. They might give you the loan - but at a higher rate. Risk vs reward for sure.
     
  8. Landscape Poet

    Landscape Poet LawnSite Gold Member
    Posts: 3,638

    I know - I am just trying to some input from others who thus far just want to say - there is nothing we can do about it or that is the way it has always been.
     
  9. MDLawn

    MDLawn LawnSite Bronze Member
    Posts: 1,284

    I'm with ya and would like to have a consistent payment even if it was only the 7 months of the growing/working season. But I'd still be skeptical in extending the larger one time jobs unless I was a larger company with a good amount if funds in the bank to A.) purchase materials and B.) cover costs on non or late payers as the full cost of the large jobs won't be paid for some months.

    Good points and I like the discussion.
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  10. Landscape Poet

    Landscape Poet LawnSite Gold Member
    Posts: 3,638

    When I suggested Mulch I was thinking of some of my size properties. My area has lots of lawns that are only 2.5 K or 4K of turf and 500 square foot of beds etc. Extending out mulch for this size would not be a issue for me if I were to have to do this assuming I controlled the time of year the mulch went in. For example right now and the last few weeks things have slowed down as par for the course here, we only work EOW or so on turf maint, so in that off week I could get the mulch done no problem and it dresses up the home for the holiday.
     

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