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Prepay and Auto Draft: Why Didn’t I Do This Sooner?

Discussion in 'Business Operations' started by Todd73, Feb 3, 2018.

  1. Todd73

    Todd73 LawnSite Bronze Member
    Male, from Florida
    Messages: 1,753

    Mowing a property Wednesday. Guy and his dog walk by. He flags me down and asks for an estimate. I get his info and he’s one street away, so I go over after I’m done. Email him the estimate Wednesday afternoon. Messages yesterday he’s in and would like to start in March.

    Wake up this morning with messages from Yardbook he’s approved the estimate, paid, and added card to file for auto draft. I’ve been doing this since the summer and it’s a great feeling knowing that I’ve eliminated that unknown with new customers of what kind of person they’re going to be in regards to payment. Wish I had done this sooner; would have saved me from a couple burns. Live and learn I guess.
    Last edited: Feb 3, 2018
  2. Rockchoplawn

    Rockchoplawn LawnSite Senior Member
    Messages: 534

    I’m working on converting to auto draft only for this season. How did you go about getting all accounts setup on Yardbook? I’m not worried about getting the customer to agree, as out of 150+, only 3 gave me issues and were told I am discontinuing service if they aren’t on board by 3/1. I just don’t see on the software how I can set it up easily?
  3. oqueoque

    oqueoque LawnSite Gold Member
    Male, from Jersey
    Messages: 3,625

    Does this cost you 3% ? The reason I stayed away from taking credit cards was the cost. 3% is $3,000. per $100.000. Comes right out of the profit.I lose about 10% of that a year on non payment, or about $300. for $100,000. in sales. Or is this like e-check & $.50 per transaction.
  4. Rockchoplawn

    Rockchoplawn LawnSite Senior Member
    Messages: 534

    2.9% plus 30 cents per transaction. Yardbook lets you add a convenience fee however
  5. AL's

    AL's LawnSite Senior Member
    Messages: 925

    Can I just point out that the man hours involved in collecting $100,000 in a non autopay method (if your hardscaping or w.e and your average ticket is 10k instead of $50 then its a little different. I am talking specifically about maintenance) will be (or at least should be) valued at well over $3,000. Especially when you consider drive time to make deposits in bank.

    Then there is the direct cost of those trips (fuel, tires, oil, plugs belts brakes etcetc) as well.

    Card is the way to go my friend.
    Bcoogan23 and Rockchoplawn like this.
  6. TPendagast

    TPendagast LawnSite Fanatic
    Messages: 11,877

    How much is the cost of cash flow (or the lack of )
    More than 3%?
    Do you want to get paid right away or wait 30-45 days (or more)
    What’s the cost of collecting payment rather than seemlessly getting paid?
  7. Todd73

    Todd73 LawnSite Bronze Member
    Male, from Florida
    Messages: 1,753

    I’ve been using Yardbook for billing for a while now, so everyone was already in the system. For customers I’ve had longer than the summer, I sent out an email in December saying I was switching to auto draft and asked them to pay their next invoice with their card and save the card on file to enroll. There’s a couple that still haven’t gotten the save to file part, but I’m sure it get resolved. For new customers, when I send them an estimate, I include instructions on how to get started; approve estimate, invoice will be sent, pay invoice, save card to file, never worry about paying your bill again.

    So basically, the customer is doing the work by entering the CC info, plus I’m never in possession of their full card number.

    Does that help???
    Rockchoplawn likes this.
  8. Dave callaway

    Dave callaway LawnSite Member
    Messages: 10

    Who does yardbook use for credit card processing? Can you chose your own merchant service. I use yardbook but have not enabled estimate approval or credit cards online.
  9. Todd73

    Todd73 LawnSite Bronze Member
    Male, from Florida
    Messages: 1,753

    They use Stripe. I don't think you can use anyone else.
  10. Dave callaway

    Dave callaway LawnSite Member
    Messages: 10

    How has your experience been with stripe? I have read some pretty bad reviews

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