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View Full Version : How Long Do You Wait for Your $$$$


breslinnet
02-10-2012, 05:24 PM
I am sure this question and answers are here somewhere but maybe not recently. My focus in last year has changed from a primarily lawncare/landscape service w/secondary services to primarily window washing with landscape/lawn maintenance as secondary. This is due to purchase of an existing company with a large customer base.
Anyway, I am curious in referance to commercial monthly clients how long you should wait for payment when you operate as "due on receipt" Next question then is at what point you send a remider without appearing desperate or pushy and do you perform the next months service w/out receipt of prior months payment??

Ducke
02-11-2012, 06:38 AM
All my contracts state Net 30 Days. 2% ad daily there after.

dpld
02-11-2012, 07:16 AM
i bill ahead so i never wait for money.

the plumber, the electrician, the doctor, the food store and any store in the mall dont give me squat until i pay so why should the landscaper be any different.

in this day and age if you work all month and then bill after the work is done and sit there like a nice little boy waiting to get paid , then you deserve to wait to get paid.

CHEESE2009
02-11-2012, 10:44 AM
i bill ahead so i never wait for money.

the plumber, the electrician, the doctor, the food store and any store in the mall dont give me squat until i pay so why should the landscaper be any different.

in this day and age if you work all month and then bill after the work is done and sit there like a nice little boy waiting to get paid , then you deserve to wait to get paid.


^ It's sad that most clients have a hard time understanding this logic. Funny, but really sad.

Also, if you don't charge in advance and you 'wait', The client might pretend to have forgotten about you, and will never pay up unless confronted. Sneaky buggers.

Ducke
02-11-2012, 05:06 PM
All my contracts state Net 30 Days. 2% ad daily there after.

Theabove is just for commercial jobs
Joe Home owner pays up front on at time of mowing.

Hedgemaster
02-11-2012, 06:13 PM
I don't have a contract for clients to sign yet (Bad Hedgemasted, BAD!), so I can't really ask for "X" more for paying late.

My options are pre-pay, or pay at time of service. I generally won't cut again unless payment is current. I have, on occasion, but only for those who I know are good for it - everyone forgets once in a while.

When you are set up to collect at time of service, you have to accept that sometimes people do forget to leave your money out for you and you'll have to deal with it the best you can. I've found that most of my clients will actually leave me MORE than is due when I come by the next week as an "apology" for not having my pay out the prior week.

The problem with letting people slide is that after three or four missed payments, they have to reach in the wallet for a sizable lump of cash, and depending on the client's financial situation, it could prompt them to rethink things.... "Hmmm... maybe every OTHER week would be better?"

jymie
02-11-2012, 06:52 PM
It is common for a commercial account to pay within 30 days of getting the invoice, so in actuality, you can expect to wait 60 days from the first cut. You service them one month, send a bill for that service you just performed, then it should be paid by the end of the next month. Ex. you serviced them the month of May, send an invoice on May 30, that invoice should be paid for by June 30, for the month of Mays services.

Hedgemaster
02-11-2012, 06:54 PM
My apologies. I missed that this was about commercial accounts - of which I have none.

:o

bruces
02-11-2012, 07:22 PM
actually with commercial ,its common for them to pay in 30,60,90 days ,which is why whenever I am looking at commercial properties the first question I ask is what payment schedule they are on so I can adjust my price or my middle finger according to my being interested in the work .Generally the larger the company, the slower they pay ,but there are always exceptions [beer companies pay within a week for instance ] .

Steve
02-13-2012, 01:57 PM
i bill ahead so i never wait for money.

When you see commercial customers wanting to not pay for 30, 60, or 90 days, what is your advice on the best way to get them to prepay?

I would think, if they have gotten used to paying much later with previous lawn care companies, they wouldn't be too keen on paying before hand.

AkersLawn
05-30-2012, 01:21 PM
Ya I'm working a few commercial clients, and it is the end of may, and they still owe me for two weeks in march, the whole of april, and now the whole of may. Should I send a payment request letter? Put their account on hold and send a notice ?? This is frustrating. Darn near half my income seems to just be forgotten about.

stevef1201
05-30-2012, 02:05 PM
You should have asked when you started what thier payment plan was. I asked and was told that because I would be doing corperate headquarters payment would come in 2 weeks, but some of the other companies have to wait up to 3 months for the billing to go through channels.

BTW I got this account through MY WEBSITE, if you sont have a website you are killing yourself. YUPPIES ( Young Upwardly Mobile Professionals) use the web not the newspaper to find services..,,,oh and I got a third smaller account last week through the websit.

stevef1201
05-30-2012, 02:07 PM
i bill ahead so i never wait for money.

the plumber, the electrician, the doctor, the food store and any store in the mall dont give me squat until i pay so why should the landscaper be any different.

in this day and age if you work all month and then bill after the work is done and sit there like a nice little boy waiting to get paid , then you deserve to wait to get paid.

ALL of my contracts are billed at the first of the month for the month. I dont have but three that pay for service and they all pay at the time of service. I love monthly contracts

SECTLANDSCAPING
05-30-2012, 02:31 PM
ALL of my contracts are billed at the first of the month for the month. I dont have but three that pay for service and they all pay at the time of service. I love monthly contracts

This is how I bill too. I have one new guy that has been paying mid month for half the work. He then asked when I'm going to trim a 80x8x8 hedge. When you pay mofo!

My payment terms are clear in the contract.

The only time I dont bill this way is when the company has its own contract with payment terms. Thats usually net30.

Steve
05-31-2012, 09:29 AM
Should I send a payment request letter? Put their account on hold and send a notice ??

What was your agreement with them before you got started?

AkersLawn
05-31-2012, 05:48 PM
Well I started in the middle of march, two large commercial properties and I'm making 100$ a week on one, and 50 a week on the other. The small one is minimal work until today.. and the large one is quite a few hours and not too bad of work. But we agreed on bi-weekly payment, and after a 3 or 4 weeks we realized the invoice information was sent to the wrong address, which was really my fault. But i talked to the guy I work for and he told me to email my invoice to his accountant, and they are cutting checks that day. It's been two weeks and I know they got it, but he said he'd take a look at it today and get it back, and for whatever reason I trust the guy.
The small job just sent a complaint in about the weeds, whoever did the install neglected any sort of barrier, ... so guess who gets the re-install :D
I need to bid that now ... o crap.