Do any of you accept pre payment on contracts?

Discussion in 'Lawn Mowing' started by AllSeasonsAllReasons, Mar 14, 2001.

  1. AllSeasonsAllReasons

    AllSeasonsAllReasons LawnSite Member
    Messages: 74

    If so what are the pro's and con's of this?? Do you offer better rate for pre payment? Thanks Cory
  2. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Messages: 1,912

    I have two customer's that do this one pay's 2 months upfront the other pays a full year ^-- I wish everyone did this problems last 3 years, just do the job that was promised ....and they pay for extra's when reguested
  3. What I do is demand that all new residential jobs pay the first monthly installment payment up front and the rest are due the 1st of the month b/4 any work is done. NO payment NO Stone. The fee for early cancelation is $200.

    When I send a proposal to a new account they must remit a check for the first month service with the signed proposal b/4 I will start any work.

    I also run a TRW credit check on any new accounts. If they have a bad credit history I give them one the opportunity
    to make one pre-payment for the entire season with a 10% discount. Then I wait for the check to clear b/4 starting any work.

    In the past 3 years I have brought home 100% of my receivables.

    [Edited by lawrence stone on 03-14-2001 at 10:23 PM]
  4. Charles

    Charles Moderator Staff Member
    Messages: 8,954

    Thats a good idea Lawrence. I had an account that was paying monthly. What a pain that turned out to be. Because some times that would wait until the middle of the next month to pay for the previous month. I had to dun them to even get that. By then you have a month and 1/2 invested in the yard and if they dont pay you are screwed good. too much to worry about. They even sometimes went 3 weeks. They are in charge at that point. Luckily I have only had a few monthly accounts over the years.
  5. joshua

    joshua LawnSite Bronze Member
    Messages: 1,226

    i try to build trust with my customers on cutting. i tell them if they want to pay every cut they can or if they want to pay once a month whatever suits them better. most go with once a month, they always pay, because the product i deliver is top the list of quality in my area. and they want me back.
  6. lawnboy11

    lawnboy11 Banned
    Messages: 181

    I offer a 10% discount on the spring clean up only. This gets a good response and gives me capital for the spring purchases, etc. I don't want to discount everything 10%, no thanks, I'll take that 10%. After that I bill at the end of each month for work done that month, but I expect payment within 15 days or the late charges begin to apply.
  7. Charles

    Charles Moderator Staff Member
    Messages: 8,954

    Joshua, doing a great job and getting paid on time or at all are not always synonymous. Some customers are just jagoffs who think the lawnguy is last on their list when it comes to bill paying. There problably late on all their bills. I rarely have a customer like this but after 11 years in the biz you run into all kinds. And they wouldnt know quality if it hit them in the face. But i am glad you think you are so special that this will never happen to you.
  8. Charles can't you tell Joshua is a teenager?

    I can for many of these young guys are too lazy to hit the shift key.
  9. lee b

    lee b LawnSite Fanatic
    Messages: 6,207

    Either Joshua is really lucky or doesn't do much business. I have never seen a business dealing with open accounts who hasn't been taken, even liens aren't a 100% guarantee. There are people just waiting for the oppurtunity to get something for nothing. Good luck Joshua, I hope you never get ripped-off.
  10. kutnkru

    kutnkru LawnSite Silver Member
    Messages: 2,662

    We offer a 10% discount for those who are willing to pay for the season in advance. The only disadvantage is that if they want to cancel the contract, that we have to have their funds available for reimbursement.

    I am going to look into the TRW for new clients starting yesterday. We have not really started signing contracts for residential clients.

    Thank you for the insight. Do you think that if they couldnt pay for the entire season upfront that two installments would not be out of the question?? Im refering to half up front and then the balance due before the end of the 4th month.

    Thanks again.

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