PDA

View Full Version : Pay me now.


JLM
04-30-2012, 11:03 AM
I was having trouble getting paid from 2 customers..After 1 month I cut my loss and droped them.

I have picked up several new properties after I droped the NON PAYERS.
I requested to be paid at the first of the month in advance (so as I would not get the shaft) with any extra work billed monthly. And I gotta tell yall I have not lost a sell yet. I see a patern with this... Pay me month to month, if you can not afford me any longer at least we can be square. I have had every new customer of mine write a check for one month of service on the spot with no hassle or BS.

My question to you??

How does this make my company look in the customers eyes?

I only bill this to homeowners.
Commercial accounts are billed monthly.

SECTLANDSCAPING
04-30-2012, 11:21 AM
I bill my commercials the same way unless they have their own payment terms in the contract. This has worked for me too but now I have a commercial account a month behind. There about to be double billed.

Hedgemaster
04-30-2012, 07:35 PM
I don't have anything set in stone yet, but I tell people that my payment options are "at time of service", or "pre-pay 2-4 cuts".
The only ones I send a "bill" to are people who don't live at the properties I'm cutting. (rentals)

Most pay per cut, but some pre-pay for the month because they like the convenience.
I won't cut more than once without being paid up. I've only been burned by two people (last season) and each was for one service that was unpaid. I won't go back until I'm paid for the previous cut.

Steve
05-01-2012, 05:13 PM
If you can get paid in advance, that is great! Have you considered offering a discount to get prepaid for the year?

Hedgemaster
05-01-2012, 05:39 PM
If you can get paid in advance, that is great! Have you considered offering a discount to get prepaid for the year?

Me? Nope.

My prices are already lower than they should be in many cases. No discounts.
Also, I can only think of maybe one or two clients who could actually afford to pay out that much in one, lump sum.

CHEESE2009
05-01-2012, 05:41 PM
You guys lose money when you charge per cut.

Make it so that the client will have to pay regardless if you show up (because of bad weather, etc).

You want stability at all times.

A client might say, "I don't want to pay for work you didn't do". The fact is, payment should have little to do with the work you do.

Charge similar to what you'd expect if you have a plan with a cell phone provider. Regardless if you aren't using your phone, you still have to pay the minimum.

-

My season has approximately 24 visits per customer;
$551.88
With rain, I may lose 6 visits;
$137.97

The way I have it, the clients will still pay me the $137.97 that some of you are missing out on!

If a client of mine doesn't want to pay because I was not able to show up 6 times due to rain (it gets bad here), he has 2 options: pay, or find someone else.

The client will usually come crawling back, because our service is of high quality. To keep the quality up, we need MONEY. :D

-

On topic...

My clients submit to me three (3) post-dated cheques.
e.g.;
1. May + June = $183.96
2. July + August = $183.96
3. September + October = 183.96

Steve
05-02-2012, 11:33 AM
Scott, as you have implemented that policy in your business, how has that changed things for you and improved your operations?

CHEESE2009
05-02-2012, 12:19 PM
Scott, as you have implemented that policy in your business, how has that changed things for you and improved your operations?

I'm basically avoiding a ton of stress by not collecting money from each client every month.

There is no one to chase!

Unfortunately, all cheques were due yesterday and not everyone submitted them to me. No big deal, chasing clients one time is a lot better then 6 times!

Once I get all their cheques for the entire season, I'll be free as a bird!

-

A lot of my posts on this forum were all about how annoyed I was when it came to collecting money monthly, this will really turn things around!

Everyone should utilize post-dated cheques, it's so simple!!!!!

JLM
05-02-2012, 04:58 PM
This system seems to be working all customers paid me for May. In Fl, we cut 42-48 times per year depending on our winter.. Its kinda hard for folks to pay for a year of service up front between 1,500.00-2,000.00 per year.

JLM
05-02-2012, 05:07 PM
Have you considered offering a discount to get prepaid for the year?


I think I will look into that, maybee 10% or 5 yards of mulch free...I get mulch for 20.00 per yard...now my minds runnin 90 to nuthin Im going to think about this one thanks.

AkersLawn
09-03-2012, 04:02 PM
Scott, I love your post dated checks. That is surely the way to go, I'm finally finding out. Next year will be different, I'd rather have my headache be more along the lines of... gosh i'm so overloaded with work.... than.... well I have money, sort of, like when i get paid ....
Im able to take credit/debit cards, and of course checks and cash. Next year it will be post dated check, prepaid with a card, or at the time of service, with no revisit until I get paid. Also, I will absolutely not under any circumstances drop the damn tailgate for less than 25$.

SECTLANDSCAPING
09-03-2012, 04:15 PM
Scott, I love your post dated checks. That is surely the way to go, I'm finally finding out. Next year will be different, I'd rather have my headache be more along the lines of... gosh i'm so overloaded with work.... than.... well I have money, sort of, like when i get paid ....
Im able to take credit/debit cards, and of course checks and cash. Next year it will be post dated check, prepaid with a card, or at the time of service, with no revisit until I get paid. Also, I will absolutely not under any circumstances drop the damn tailgate for less than 25$.

I been burned by debit, paypal, and checks. All 3 options allow chargebacks/stop payments. I wont be surprised the day someone hands me monopoly money.

dpld
09-03-2012, 04:29 PM
I been burned by debit, paypal, and checks. All 3 options allow chargebacks/stop payments. I wont be surprised the day someone hands me monopoly money.


my sentiments exactly, there is no substitute for having a signed contract with every detail spelled out.
this way you have all your bases covered in the event you need to get judge wapner involved.

AkersLawn
09-03-2012, 07:19 PM
I been burned by debit, paypal, and checks. All 3 options allow chargebacks/stop payments. I wont be surprised the day someone hands me monopoly money.

Yes i've found that the only way to take plastic is to charge it every time. The thing that gets me the most is people looking at me like im some sort of A-Hole for requesting payment at or before the time of service. I've gotten good at this ....
Client:
So how do i know you will do the work?
Al: Well if you are concerned you can pay at the time of service
Client: I'd be more comfortable billed at the end of the month
Al: What are you eating for dinner tonight?
Client : ..... Uh.... Rocky mtn Oysters ... why?
Al: When you bought those Oysters, did you tell walmart you'd like to be billed monthly or when you picked up your groceries, did you pay then?

Never Fails.

CHEESE2009
09-03-2012, 07:32 PM
Al: When you bought those Oysters, did you tell walmart



Walmart has Oysters?! :O <3

wat5150
09-04-2012, 09:10 AM
Wow...eating bull balls...nice:eek:

lonestarlawn
09-04-2012, 09:41 AM
Everyone should utilize post-dated cheques, it's so simple!!!!!

Thats how I'd like to have things running. How do you sell this to new customers? I can't get anyone to pay for more than 1 mow at a time.

CHEESE2009
09-05-2012, 12:24 AM
Thats how I'd like to have things running. How do you sell this to new customers? I can't get anyone to pay for more than 1 mow at a time.


With speaking to several other people on the forum and out of my city, I have to say that it highly depends on your area.

In my area, it's completely normal for businesses like ours to charge clients for the full season, regardless if we miss a few visits (grass stops growing, etc) we'll still get paid.

I have a feeling it has to deal with the pricing. In my city, our service is 40% less expensive then anywhere else in the world, so I suppose we wouldn't settle for 'pay-per-visit' lawn maintenance.

The majority of you would probably have to quadruple your clientele in order to make what you are making today financially, just in my area.

-

Another example would be snow removal, this is where WE usually have the advantage over most people.

A lot of people (not from my city) charge per job during the winter, this lacks in consistency, $$$. In my city, we charge for the entire season, regardless of how much it snows.

The problem is, the more it snows, the more money WE lose vs the more it snows, the more money YOU make. Both are good and bad, depending on the winter.

Our chances of making more money is greater, but so is our chances of losing it all. lol... Winter is a gamble.

AkersLawn
09-05-2012, 06:53 PM
Walmart has Oysters?! :O <3
Hahaha Hell if i know, just trying to make a point ! :)

I wonder how most companies in my area charge, for the season or per visit. I have a hard time getting people to pay me in advance, and it seems more of a trust issue than anything. And snow removal too, I have a large snow removal account. Im hired by a large maintenance company that does thousands and thousands of various corporate stores nationwide, and they pay for the season. However, all the commercial bids I've sent around and all the companies where im trying to get my foot in the door, want either a Per-Push, or an hourly rate.

CHEESE2009
09-07-2012, 10:30 AM
I think it's worth a shot to try and bring into your area.

Giving the clients the choice as to when they should require your service is a bad idea.

Your contract should have something like:

Lawn Maintenance
3x $xxx.xx : May 1, 2013 and Jul 1, 2013 and Sep 1, 2013

Checks must be accompanied with a copy of your signed contract and made payable to: «COMPANY NAME»

http://i100.photobucket.com/albums/m25/mad_insane/exampleCTRCT.png