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Quick Question about Monthly Billing

Discussion in 'Lawn Mowing' started by STL Cuts, Jan 26, 2011.

  1. STL Cuts

    STL Cuts LawnSite Senior Member
    Messages: 493

    I currently bill all of my commercial accounts, but only maybe 25% of my residentials. Many of them are accounts I've been mowing since I started in high school and a good number of them will either leave money under the mat every week or I will speak with them briefly after I finish mowing.

    Now I think the brief 1-2 minutes I spend saying hello to them each week after servicing the property is actually well worth the time. Many are elderly and I can tell that in many cases this is the only personal interaction they will have that day and it "makes their day", so to speak. A lot of times they will also greet me with a Gatorade/water, etc. and I don't mind losing a couple minutes talking with them. Many are probably going to say I'm crazy and wasting time, but I can tell you that investing a couple minutes and getting to know your customers, building rapport, and giving them the time of day will go a long way (espescially the elderly, they've been extremely loyal, appreciative customers). Now if you got a crew of 3 guys, I can see where you're coming from though regarding time.

    Anyways, this year I am planning on raising rates slightly at some accounts, I'm thinking by about $3 at the standard $30-$35 lawns. Some of these will be people that usually pay me while I'm there or leave money waiting for me. I'm thinking this might cause a small issue as most are used to paying $30-$40 (paying with a couple bills), and adding three $1 bills would be a pita for them.

    So I guess what I'm getting at is do you think it would be best if I just tell everyone I will bill them at the end of the month? This way they won't have to worry about having the perfect arrangement of bills around each week.

    The only potential downside I can see is the psychological approach of people receiving a bill for say, $140 for the month, and viewing it as a big deal instead of just paying out say $35 a week. Also, I hate invoicing, so it would be more trouble for me too.

  2. Clark Griswold

    Clark Griswold LawnSite Senior Member
    Messages: 554

    I never raise prices by dollar amounts, keep it even in 5 dollar amounts it's much easier!

    Good Luck
  3. STL Cuts

    STL Cuts LawnSite Senior Member
    Messages: 493

    I thought about that as well, I'm so indecisive!

    Any other thoughts?
  4. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    It's NEVER a good ideal to get paid while your there,
    They try to screw you out of the sales tax, and besides that your always doing bookwork.
    When you get larger had have a crew say of 3 and your NOT there, then what?
    Dont let your employees pick up checks for you.
  5. BadRancher

    BadRancher LawnSite Fanatic
    Messages: 5,892

    Not to jack the thread, but when are you "big enough" to start monthly billing or would you do it no matter your size? Like STL, I get paid at time of service by most of my folks. I would love to rool all over to monthly though. It seems the biz is more manageable that way.

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