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Billing commercial account

Discussion in 'Business Operations' started by dutchman, Jul 22, 2008.

  1. dutchman

    dutchman LawnSite Member
    from CT
    Messages: 106


    I got a E-mail today from my commercial costumer and it said: to bill them Quarterly because there terms are now 45 days.

    What do you guys think about this. I am ready to drop them but maybe tomorrow I will think differently.
  2. Frue

    Frue LawnSite Bronze Member
    Messages: 1,472

    tell them sure I will do this I want prepayed for the quater. Tell them thats your terms. Tell them 12 cuts paid for rain or drought.
  3. heather lawn sp

    heather lawn sp LawnSite Senior Member
    Messages: 681

    Yeah! what ^^^^^^he^^^^said!!
  4. Lawnbiz Jeff

    Lawnbiz Jeff LawnSite Member
    Messages: 26

    Reminds me too much of my previous corporate life with major customers dictating terms to my company. The problem for you is that you pay for many of your costs with each cut (gas, oil, labor, supplies, etc.) each week and now they want to stretch your out of pocket expenses even further. I don't understand the quarterly request though since net 45 days is not quarterly. Quarterly would be net 90 days.
  5. big_belly4ever

    big_belly4ever LawnSite Member
    Messages: 66

    See if they will prepay other wise some of the "big" have done that to me 45 days after my bill gets there they pay. i start billing early in spring and added on some for my wait time they've never said anything. just they way their accounting is set up?
  6. Scagguy

    Scagguy LawnSite Bronze Member
    Messages: 1,522

    Their terms huh? Who runs your business? You or them? What is your net income on this property? Can you replace that income before the end of this mowing season? Can you afford to let them stretch you out like that? Do they owe you money now? If so, how much? Nothing pisses me off more than someone who thinks that he can run me over. I kicked a 60K a year client to the curb back in the spring because they were going to change terms of payment on me. They didn't ask, they told me what the new terms were going to be. (Going from 30 days to 90 days) Just happened to be at the end of the month so I told them they better line up a new lawn care provider because we were done.
  7. Gene $immons

    Gene $immons LawnSite Bronze Member
    Messages: 1,028

    This is fairly normal for commercial accounts. They don't care if you quit them either. If you don't do the work someone else will. But it does not hurt to request a face to face meeting with whoever, and discuss your concerns. The pre-pay idea is a good one.

    Good luck.
  8. Stillwater

    Stillwater LawnSite Platinum Member
    Messages: 4,889

    A LOT of commercials do this, very common that is why you bill 45 days in advance.

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