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Economy effecting anyone?

Discussion in 'Lawn Mowing' started by chipk1, Mar 23, 2007.

  1. chipk1

    chipk1 LawnSite Senior Member
    from Florida
    Messages: 398

    Out of the 54 residential accounts I have, 7 of them are up for sale. I think these stupid interest only ARM's mortgages are starting to effect many home owners that have fell prey to them. I have also noticed that many of my customers are getting later and later. I currently have 1500.00 setting in my A/R that are past due which is about 1000.00 more that a year ago. Is it just me?

    I guess the good side to this is many local LCO's will go under and I will pick up some of those accounts:drinkup: . Not that I would want that to happen to anyone.:D
  2. ed2hess

    ed2hess LawnSite Fanatic
    Messages: 14,465

    People are paying later and later....while we have a lot outstanding we was talking to one of our major irrigaton installer and he had 1.0 million outstanding. He runs across several cities and said it is bad everywhere in Texas.
  3. mowahman

    mowahman LawnSite Member
    Messages: 86

    As of today, I still have over 7K out on last months plow bills. All are NET 10.
    In the past years, most would be in by the 7th-8th. Only the 2 seasonal contracted ones paid between the 15th-20th. This year, it has been extremely slow. I think most of them thought winter was done and over with except last Friday/Saturday we plowed 'em all again. I thought that would get the checks in, but it didn't. I've been at this game since 1975 and only one other time I can remember things being this slow..1988-89. Was talking to the guy at the mower shop and he said they sold more snowblowers in the past month than they sold since November. Crazy times are around the corner!!!!!!!!!
  4. jeffscap

    jeffscap LawnSite Member
    Male, from Western New York
    Messages: 160

    Man That much outstanding? If he doesn't watch he'll be outstanding in line.:waving:
  5. Duekster

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

    So far no but I am mostly commercial. I am worried about getting played because a few peps are for sale.
  6. Duekster

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

    If anyone has a solid contract for residential I would be grateful
  7. txgrassguy

    txgrassguy LawnSite Gold Member
    Messages: 3,083

    Nope, I'm hammered with work.
    I have a strict, firm policy.
    My invoices are net ten, anything after gets hit with a finance charge.
    It really winnows out the late payers, deadbeats and a very few " gee - do I really owe you that much?".
    Give people an inch and you will loose your business.
    I sure as hell am not a charity, neither is my business and I will not give in!
  8. Duekster

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

    I don't extend to much credit to res either.
  9. Envy Lawn Service

    Envy Lawn Service LawnSite Fanatic
    Messages: 11,087


    I feel the squeeze more every year.
  10. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Messages: 4,373

    No, I went to straight commercial years ago and every year get more work than I can handle.

    I DO have some accounts that are paying later and later, like 1-2 days / month later, but then they'll get back on their usual day and be good for 2-3 months, then slow down again.

    I think it has more to do with people don't have time to pay bills, personally.

    I find that in my own life. With 2 kids going different directions both for school and after school activities, then work, errands, etc., you get home, get the kids in bed, sit down for a minute yourself, then say "I'll get to that tomorrow". Pretty soon you're looking at bills that were due 3 days ago.

    As for the homes being for sale, yes, I totally agree that many people now have mortgages that they cannot / will not be able to afford.

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