Switching Customers from monthly billing to weekly billing

Discussion in 'Business Operations' started by bob the builder, Jun 16, 2012.

  1. bob the builder

    bob the builder LawnSite Member
    Posts: 16

    We are experiencing that our monthly invoices are not generating the cash flow that we need to operate our business. My customers receive their invoices by the 3rd or 4th of the month and our terms are 15 days but they seem not to care. If they wait 30 days to pay their invoice then that means the first mowing of that invoice was 60 days ago. We use service autopilot and we can set it up to make each customer pay weekly with their credit card but I dont know how they will react with me changing the way we bill. We can auto charge their card as soon as we are done mowing their and have the money in a couple of days verses 60 days. My question to you guys is how to tell my customers that they must switch to our new billing process without loosing them.:usflag:
     
  2. MOturkey

    MOturkey LawnSite Silver Member
    Posts: 2,746

    Tough situation. I send invoices immediately following the last date of service in the month. In other words, if the last day I mow is the 24th, the invoice goes out the following day. I don't date the invoice any differently, but people tend to pay more quickly. I have multiple bi-weekly, and even a few monthly, accounts, so I receive payments throughout the month. For example, I have one account which I mow on approximately the 1st and 15th of the month. I mowed it yesterday, and their invoice went out in today's mail, rather than waiting until the end of the month. I also find this is much easier for me, rather than having to do all the invoices at once.

    As for your question, if feasible, offer a small discount for switching to auto-billing for existing customers. You'll be paying a fee for running their card, but it will be partially offset by not having to mail out invoices. New accounts, you can just tell them this is the way you do business. Good luck.
     
  3. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    I am going to suggest that perhaps you actually have a revenue problem which is made worse by cash flow.

    If the revenue is there, you should be able to hit a rhythm even with the 30 to 60 day lag in cash flow.
     
  4. yardguy28

    yardguy28 LawnSite Platinum Member
    Posts: 4,464

    I can't imagine a successful LCO can't make it on monthly invoices. I realize I'm solo so overhead is diff for me but still.

    whenever I think of money in life in general it all comes down to how you manage it. talk of needing cash flowing weekly or all 12 months to me says bad managing of money.

    we should all be able to have our clients pay us all for the entire season up front and be able to go the whole year without a single check. likewise we should be able to accept monthly invoices 9 months out of the year and be fine the other 3.

    it's in how you manage your money. you receive the same amount whether it comes weekly, bi weekly, monthly, yearly.
     
  5. fastlane

    fastlane LawnSite Senior Member
    Posts: 347

    Why is it that a lot of " lawn care " companies think they should have instant access to their money? Do you you not have a minimum 3 month working capital like most business plans suggest? I do understand " I did the work I'm entitled to the money " If this is a business do you have a business plan?
     
  6. Schuley

    Schuley LawnSite Senior Member
    Posts: 250

    Enforce a late fee policy. If they pay late they get a late charge...
    Posted via Mobile Device
     
  7. MOturkey

    MOturkey LawnSite Silver Member
    Posts: 2,746

    I think some of you guys are being a bit harsh with the OP. We can't know his circumstances. I am in a position where I can wait for my money, others cannot.

    The big difference in this industry, in comparison to others, is the time lag between performing the service and receiving compensation for it. How many plumbers, electricians, roofers, appliance repairman, etc, perform the work, then wait until the end of the month to send you a bill? Damn few, I'm thinking. Sears repair, you pay at time of service. Our local electrician, you pay at time of service.
     
  8. clydebusa

    clydebusa LawnSite Bronze Member
    Posts: 1,660

    :clapping:
     
  9. clydebusa

    clydebusa LawnSite Bronze Member
    Posts: 1,660

    :clapping:
     
  10. easy-lift guy

    easy-lift guy LawnSite Gold Member
    Posts: 3,376

    My contract had all of my accounts pay in advance for year round service. If my account was 5 days late I would call and remind them they were past due. If any customers had issues with my terms, they new all other Landscape maintenance firms had the same terms. At least that is how I trained my accounts, it worked fine for me.
    easy-lift guy
     

Share This Page