Spring Deposits

Discussion in 'Business Operations' started by KSB, Feb 7, 2012.

  1. KSB

    KSB LawnSite Member
    Posts: 10

    Hi Guys: All my clean up and lawn mowing work is by the hour. With such a bad winter plowing this year, I was wondering if any of you guys require a deposit for spring and summer work in early spring.
     
  2. v6rs97

    v6rs97 LawnSite Member
    Posts: 234

    I would like to know as well. Wanted to see if anyone charges upfront for a dump fee but got no replies in my thread
     
  3. orangemower

    orangemower LawnSite Silver Member
    from pa
    Posts: 2,773

    What did you do last year? I wouldn't ask my customers for money up front unless they are on a 12 month payment plan which in that case I'd be getting a monthly check. I don't think it's a good idea to ask them. It makes you look like you can't manage your money.
     
  4. KSB

    KSB LawnSite Member
    Posts: 10

    I'd rather manage their money than mine. Most of my customers now string us 65 to 90 days on an invoice. Like to hear from some other guys please.
     
  5. tras

    tras LawnSite Member
    Posts: 170

    I never ask for upfront payment. I work off of cash or my line of credit.

    I run a special in a large lake subdivision(1700 ish lots, 1000 or so are empty) and customers with empty lots pay for the year of mowing up front(rough mowing, i mow all the lots about once a month), a flat rate of $150 if paid by March 1st, $200 after that date. On a typical year I have about 80-95 lots, about $13k of start up cash for the year. I knock all this mowing out in a couple days each month. I don't make anything off doing this per se, but the money it generates in the slow time of the year is worth the hassle.
     
  6. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Posts: 8,867

    I do season prepays for app service. Only for those that have a full program with aeration (single app discounts = no no). 5%. Only about 1/10 of my customers do that, but it gives me nice start up income for the season.
     
  7. xclusive

    xclusive LawnSite Bronze Member
    Posts: 1,052

    I also give my clients an option to prepay the whole season upfront to save some money. I have a few that opt for this and it gives me extra start up money in the beginning of the season.
     

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