Wheres My Money?

Discussion in 'Lawn Mowing' started by DizneyWorld, May 15, 2005.

  1. DizneyWorld

    DizneyWorld LawnSite Member
    from ma
    Posts: 22

    Most people pay the cable, gas, and electricity every 30 days why not the lawn service. I have some accounts that believe the can pay me at their leisure. This makes me insane. I always get the money but I have to leave a second bill and sometimes even a third! Anyone else have that problem with his or her accounts? Please make me feel better.
     
  2. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,311

    Yes most have that problem I just do not run my operation so tight to make it bother me. I went into Jan being owed 35,000 from fall and last season I got all but around 2 k of it and most of that is being paid off in payments. As long as I get 75% of my money each month I am happy the rest comes it always does but I have learned to accept it will come slower. I know some flip and cry and freak over a single lawn cut I am sorry I have better things to do like more work then chase a few nickels and dimes. That said my mother now works for me this year so while I would not be bothered to chase down deadbeats god help them she will.
     
  3. DizneyWorld

    DizneyWorld LawnSite Member
    from ma
    Posts: 22

    Nickels and dimes are what a lot of smaller business run on.
    Example you have 60 accounts each owe you an average of $40. That equals to $2400. If you only collect 75% you are still out $600. I don’t know about you but $600 is a good amount of money. I got bills too! I don’t get hell bent over it but I don’t have my mother to keep books, its all me. That’s more time and effort to keep track of everyone. If you cannot afford the service or you need a payment plan then obviously professional landscaping is a luxury that you should not peruse.
     
  4. DizneyWorld

    DizneyWorld LawnSite Member
    from ma
    Posts: 22

    How big are you guys anyways?
     
  5. pagefault

    pagefault LawnSite Senior Member
    Posts: 492

    I'm small (under 50 customers) and everyone pays me up front. I collect before the first cut of the month. When I go out for the second cut of the month, I leave an invoice that shows "Paid, thank you" for the current month and the amount due for the next month. The due date for the next month is the date of the first cut for that month.

    About half of the customers are paying as they go, which is fine too. If I don't have payment on or before the date of service, there is no service unless I want to give them the benefit of the doubt. So far, everyone is current and nobody is complaining.
     
  6. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,311


    I'll know that more by the end of the month but it looks like I should be around 185-210 accounts this season and if the rest goes well that will come out to around 40k a month.
     
  7. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    I had this problem last year and thats why this season I started sitting down with every customer and explain to them that I'm not a "Larry's Lawn Care" and we are a legit company and we expect to be paid for our services when billed. Its stated in our contracts when the payments are do and there is a penelty if not paid by a certain date. So far no problems this year.
     

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