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Year round contracts vs. Pay as you go.

Discussion in 'Lawn Mowing' started by Nw. Shadesofgreen, Dec 17, 2003.

  1. Nw. Shadesofgreen

    Nw. Shadesofgreen LawnSite Member
    Messages: 91

    please give your thoughts on what you feel the best way to keep your money comming in throughtout the year.

    I am leaning toward just billing by the cut and billing for exrtas thoughout the peak season instead of a twelve month contract.

    It always seems that customers get a little slow in paying this time of year when on a 12 month payment cycle or they out right get rid of you so they don't have to keep paying during the non growing season. This is unfortunate for us that would like to count on a steady year round income.
    Even with a contract signed it is sometime difficult to get what people owe you.

    I have read a few post that some have said that they just set up 12 month contracts with their commercial customers only. please answer how well this is working for you.

    Thanks in advace for your thoughts.

  2. Avery

    Avery LawnSite Bronze Member
    Messages: 1,389

    Billing each cut would be a major PITA. I do not understand how people do it. Our contracts are set up on 12 equal monthly payments for basic service with extras added to the monthly payment.
  3. WeatherMan

    WeatherMan LawnSite Senior Member
    Messages: 692

    From Day 1 I have had year round billing, and in 4 years only had a couple small proplems Such as late payments
  4. NCSULandscaper

    NCSULandscaper Banned
    Messages: 1,557

    Nohtin but 12 month contracts here. Thats how you get equal money coming in all year long. Plus we still do a little work year round on all contracts so the customer doesnt feel llike they are getting cheated. All it takes is 10 to 15 minutes every other week to keep them happy.
  5. pcnservices

    pcnservices LawnSite Senior Member
    Messages: 614

    A 12 month contracts has it's pro's and con's but my clients want to pay me for the service they got. They get invoiced monthly at the end of each month and their payment are due upon receipt.

    Mike, get yourself the Gopher billing & scheduling software program. It will solve a lot of headaches for you especially when it comes to the billing part of it. I tell you me and my wife track every penny worth of work we do day by day and besides hitting a few keys on the keyboard this program will do all the calcs for you.
    Good luck
  6. longslawn

    longslawn LawnSite Member
    Messages: 201

    12 equal payments for service, all other work billed on monthly invoice. Same thoughts as NSCULandscaper. All customers are billed this way. Also, we only do contract work on maintenance. No one time cleanups unless its for people we've done work for in the past.
  7. TJLC

    TJLC LawnSite Bronze Member
    Messages: 1,308

    Effective 1/1/04 all my "price per cuts" will be converted over to monthly agreements. I sent out letters in Nov. explaining in detail how it will work and so far only lost one account. The account was out of my way so it wasn't a real big deal. I feel this will help simplify my monthly bookeeping and hopefully make it easier on my customers. Also it will give me a more steady cash flow all year. This is how all my commercial accounts are set up. Well see how it goes with the residentials.
  8. MudslinginFX4

    MudslinginFX4 LawnSite Bronze Member
    Messages: 1,170

    My commercial accounts are on the 12-month plan so I have income all year but my residential accounts are on the month to month basis. Every month I send out a bill to my customers on the 1st day that is due within 15 days.
  9. precisioncut

    precisioncut LawnSite Senior Member
    Messages: 653

    I hoping people around here will go for the 12 month contract I resently made up. In the actually agreement is only for Mowing, Trimming, Blowing, Fertilizing, and Weed Control. I have an additional service list with other things I do that are billed separetaly and per visit, which must be signed by both parties before work is done.
  10. Finance

    Finance LawnSite Member
    from Midwest
    Messages: 1

    Some good customers don't like year round billing. Learning to budget your money just takes discipline.

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