Switching Customers from monthly billing to weekly billing

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

  1. Jimslawncareservice

    Jimslawncareservice LawnSite Platinum Member
    from mn
    Posts: 4,133

    Our largest lco still charges after each service, weather its a fert app or a weekly mowing customer. Some of thier services require payment ahead of service. Most places now days you have to have a credit check. If your score is below a certain number you need to pre pay or have a credit card on file. I dumped a few of those slow payers this spring. I may dump a few more next spring.

    Now you go to your dealer and buy a bunch of parts, you need the money. You get your truck repaired. Same when you buy almost anything else.
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  2. weeze

    weeze LawnSite Fanatic
    Posts: 8,157

    i wouldn't wait 60 days to get paid for any job. that's crazy. you are doing something wrong if it takes that long to get paid.

    on my monthly paying customers i send the bill out on the 15th and they pay me after the 1st of the next month. that's about 2 weeks later that i get paid which ends up being right after the end of the month when i do the last cut of the month. i cut the yard 2 times then send the bill and then cut it 2 more times and then the check comes in the mail. basically i'm getting paid at the end of each month after i do the work.

    most of my customers pay the same day i cut the yard which is the best way to do it to me. some i send a text and they mail a check which comes about a week later.

    i have a rule that i never cut a yard again until i've been paid for the previous cut. (except for the monthly paying customers)

    that way i don't get burned. i've never had any problem with the monthly people paying on time.
     
  3. Duekster

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

    His question was about monthly payers. He says if he mows for a month then bills and they take 30 days to pay he is 60 days out.

    Not sure how your post helps

    I do bill some of my commercial clients on the 15th of the month. Meaning they do not get a full 30 day float. My residentials are net 15.

    Most are good about paying in the first week after being billed
     
  4. Hansen's Lawn Care

    Hansen's Lawn Care LawnSite Member
    Posts: 93

    Well I cannot offer any advice...but what do you think about service autopilot?
     
  5. Mountain Peak

    Mountain Peak LawnSite Member
    Posts: 203

    I had that problem when I first started out. Turns out I wasn't charging enough, my margins weren't good enough to cover the lag. I also had a few customers that took their time to pay.
    Get rid of those customers. Keep the ones that pay you the same day they get the bill. I don't tolerate slow or late payers anymore.
    Raise the pricing for those slow customers and see what they do.
     
  6. Pressedun

    Pressedun LawnSite Fanatic
    Posts: 40,786

    I second this... added a late fee this year and have had to do it a few times already. People seem to pay more on time now though!
     
  7. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,280

    From someone that waits for 2 months to pay my phone or cable I know if you tried weekly id dump you faster then you can say opps. I do have a suggestion but it complicates things allot on the other hand its far less complicated then what you just suggested with weekly billing. What if you placed half your customers on the 1st each month and the other half on the 15th. As I said that will complicate this but it should help eliminate the dips in cash flow. Last month I had 16k or so in the bank one day and had less then 2k only a few hours later after paying bills. Then the money slowed and we squeaked through the month on fumes then a week in to the next month the first rush of checks comes in and were flush again. It's the cash flow of our business but I have often thought of how to make it more even and I think this would work only I don't have the office time to try it.
     
  8. cpllawncare

    cpllawncare LawnSite Silver Member
    Posts: 2,659

    I'm set up the same way I invoice A thru m on the 15th n thru z the last day of the month works out really good keeps cash coming in almost weekly
     
  9. grasshopperslawn

    grasshopperslawn LawnSite Senior Member
    Posts: 293

    My company used to bill monthly but we have not billed this way in 4years.we bill after every cut and it was one of the best decisions we made.
     
  10. yardguy28

    yardguy28 LawnSite Platinum Member
    Posts: 4,464

    I must be weird. I've had no less than $20,000 in the business account at all times for at least the last 3 years.

    it's not good business practice or personal for that matter to let things run dry working pay check to pay check.
     

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