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invoice Discounts

Discussion in 'Lawn Mowing' started by tazman, Jan 3, 2001.

  1. tazman

    tazman LawnSite Member
    Messages: 81

    How many out there offer a discount on their invoices for paying within a certain time? If so how much of a discount and is it N10, N15 or whatever. I signed up a new customer last November (Manufacturing plant), did $2200 worth of work for November and billed them. Didn't see anything within the 30 days after so I called. My contact says the the invoicing goes to corporate which is out of state (which I knew) but doesn't pay invoices for 45 days unless there is a discount. Kind of p****d me off, but it is a good account. Thinking on offering discount to get paid quicker, but not sure how much. Thanks.

    [Edited by Eric ELM on 01-03-2001 at 06:29 PM]
  2. Runner

    Runner LawnSite Fanatic
    Messages: 13,497

    That's one of the most ludicrous things I've heard. That's why I hate out of town corporations like that. There was a thread on here once that talked about some fast food restaurants that did like that. Jack it up 15% and offer them a 10% discount! This will cover a 5% increase for the season. Either that or send the invoices out 15 days earlier. By the time the headquarters gets it, the work will be done!:)
  3. mowerman90

    mowerman90 LawnSite Bronze Member
    Messages: 1,491

    I think you've learned a good lesson. Any time you do work for a corporation (especially a large one) expect to have delays in payment unless the terms are specifically spelled out in a contract. If a corp can withold payment for an additional 30 days from you and possibly 100's of other vendors and suppliers they can make money with that money. Next time have everythinbg spelled out in a contract.
  4. double e

    double e LawnSite Member
    Messages: 197

    Put a 2% charge on net 30 (if they don't pay in 30 days its 2% more) I put a 60net on my bills.
    Its up to you if you want to put a discount on it. if you were to discount 2% on $2200- thats $44 dollars. It might not seem like much but it adds up. If you did every client like that you could loose some money.

    If you know their going to pay in 45 days, just keep spittin' out bills every month. then you know you have a check coming every 45 days.

    I have a doctor that I made over 15K with this year on the 1st of every month I drop off this months bill and pick up last months check. Works like clockwork.

    Hope it helps
  5. tranum

    tranum LawnSite Member
    Messages: 86

    with the one really large corp acct i have, they told me up front it would be 45 to 60 days b4 i received 1st payment & they didn't lie. but, it has been like clockwork after the 1st month. got a check every 30 days for last 14 months. i think you just have to expect that from large companies.
  6. Ssouth

    Ssouth LawnSite Senior Member
    Messages: 436

    Discount it .001%.
  7. cantoo

    cantoo LawnSite Silver Member
    Messages: 2,910

    The company I work for during the day has a 90 and 120 day billing policy for their suppliers. It was hell when they first implemented it but almost all suppliers do it now. Anyone who wouldn't play ball got dropped as a supplier. I do some side work for them and I usually add a pretty good bonus to the bill for having to wait the 120 days.
  8. Ocutter

    Ocutter LawnSite Senior Member
    Messages: 314

    I receive bills paid within 30 dys due to the fact that my accounts are local. The on that has corp. HQ in Calf. pays for the whole yr in advance. Got lucky on that one.
  9. jkinchla

    jkinchla LawnSite Member
    from MA
    Messages: 74

    Most of my suppliers offer 1.5% - 2% net 10. Might as well try this, except perhaps make it net 20 since it is a large co.
  10. Old Guy

    Old Guy LawnSite Member
    Messages: 59

    I just spent 35 years with a couple of large corporations. If your guy is paying in 45 days that's better than average. We used 60-90 days and had some automotive companies that paid in 120 days. If you're making a profit on the account then I suggest you live with it. Maybe next year you can bump the price to cover the wait.


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