Pre-pay monthly?

Discussion in 'Business Operations' started by Soupy, Mar 8, 2005.

  1. Soupy

    Soupy LawnSite Gold Member
    Posts: 3,125

    For those of you that bill each customer at the beginning of the moth for work to be performed. How do you do it? Some moths have 5 cuts, sometimes a week might be skipped due to rain, or drought. We normally have about 36 weeks in a season, but end up doing 34 cuts. Also the last 4 cuts or so are charged extra for mulching of leaves.

    I'm thinking that If I just bill them for how many weeks in that month and either say tough crap if we have to skip (that would be idea, but with this business being cut throat you have to give a little) or adjust the following months bill.

    I might just bill them each month and only adjust if called on it. I can politely tell them that we get paid weekly and explain the extra work the skip week caused, but I know there will be complaints. Especially with skips due to drought were it did not cause extra work. Let's face it, all customers don't care if we need to get paid that week. They don't understand the concept of being reliable and holding a spot for them rain or shine.

    I could just add to the letter that will be sent out explaining the new billing cycle. That we will charge for skip weeks, but this will be offset by no price increases this year. I raised prices pretty good last year and I'm only raising 2 customers this year anyway. Starting next year I am going to a steady % raise though.

    I think I covered most questions you guys might have. So any advice/impute would be appreciated.
     
  2. theturfsurfer

    theturfsurfer LawnSite Member
    from mtka,MN
    Posts: 102

    I bill most of my customer monthly also. I take the total amount they will spend with e during the season an divide it by 8 months. Lawns that will not require weekly mowing because of lack of growth I usually will not bill this way. As far as skipping people on monthly billing most of them have been long time customers and look at my bill as a retainer and pay it. I have given customers credits because of severe drought but usually I will only skip a mowing once in a blue moon.
     
  3. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    the only way I do pre-pay is with existing customers. I usually just take their previous years amounts and figure it into a flat monthly rate.
     

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