Contract questions

I was wondering how many of you have your residential customers on contracts? I usually just bill after each visit but might consider changing that. Also do you ever have a customer pay you every month but in the winter time when all the work has been performed stop paying? If I end up having customers sign up for a contract I think I'll put it on a 9 month paying schedule then a 12. Maybe that would cut down on some of the people not paying in the winter. Thanks

 

We contract all customers, commercial and residential. They are different type and language. We bill monthly on residential on work done. They are to pay us by the 20th or there will be a late charge and if payment is 30 days delinquent we stop all services and a 10% late fee is added to bill. If they do this more then 2 times with no prior attempt to notify us we change billing to after service only billing. You dont want to go with 9 or 12 monthly payments unless your like we are and service 12 months. If you have say 24 cuttings a year your contracts should be for 6 months otherwise you may be putting yourself in a bind if you need repairs or other expenses come up.

 

Landscaper3 we operate very similar. You are more "polite"
to "deadbeat" / slow paying clients. We cut their service off if unpaid in 30, go to colllection at 60 days no BS. We calculate our "mow only" clients at 25 (regardless of actual) It evens out things especiall if you do a mailing,(stamps ARE going up again) and especially in the early spring where you may have to "cut" a lawn at least twice because of growth. Ask for 6 montlhy installments April 1 thru Sept 1.

 

I put all mine on 12 month. I can't see doing it any other way. I need to eat in the winter too. I would have a problem going three months without any income, we don't get snow here. Factor in all the services your offering and total them up, then divide by 12. Thats what your going to get year round unless they request something additional.

Homer