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  • non paying customers

    i have a customer i service for lawn care, and we bill him by the month. *So we have sent him a bill about 2 weeks ago around the 29th of Sept. We have called him 2 times once on the 2nd of Oct and then again on the 7th, due to non-payment, so he says i will talk to my wife to see about it, she handles the bills. Here it is the 12th and still havent received anything from them. Bill totaling $193

    Its a $50 yard= $100 a month ********-bi weekly service,very easy yard and i have other homes near him

    He pays regular so i dont know whats going on. Thinking about not servicing him again until i get the money

    so what do i need to do, any advise

    any letters for non paying customers?




  • #2
    Well, my take is I wouldn't service them again until they paid. I would call up one more time to follow up and ask if they are going to be able to resolve the payment before you service them again.
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    • #3
      Quote[/b] (Team Gopher @ Oct. 12 2007,9:49)]Well, my take is I wouldn't service them again until they paid. I would call up one more time to follow up and ask if they are going to be able to resolve the payment before you service them again.
      should i start collecting payment when finsihed with job for now on, to prevent this from happing again

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      • #4
        If you can do that and it's you collecting the money, I think that is the best way. There is nothing like being paid on the spot for the service you provided and not having to wait for your money.
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        • #5
          Quote[/b] (Team Gopher @ Oct. 12 2007,10:10)]If you can do that and it's you collecting the money, I think that is the best way. There is nothing like being paid on the spot for the service you provided and not having to wait for your money.
          i would say 36 accounts pay when i am finished and the other 14 are bills total of 50 accounts



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          • #6
            As you grow, most companies move away from collecting on the spot, but at this point it can really help you with improving your cash flow. When you are starting out, cash flow is really important.

            Later, you probably wouldn't want employees collecting payments because you may never see it.
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            • #7
              Quote[/b] (Team Gopher @ Oct. 12 2007,10:15)]As you grow, most companies move away from collecting on the spot, but at this point it can really help you with improving your cash flow. When you are starting out, cash flow is really important.

              Later, you probably wouldn't want employees collecting payments because you may never see it.
              so should i send bills out before the service is completed, like send the bill out 4 days before i service, so i dont have to wait so long to get the money in the mail, or send bills out after service is completed

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              • #8
                You can try this with that customer. I send out roughly 10 days before the next billing month an invoice to my customers. I require from them to send payment to me for the next billing month. Meaning its now October and around the 21st-25th I sit down and print out everyones invoice for Novembers lawn services. I send them out the next day and before we come to service the lawns payment is sent and received by us for that month or payment is left for that month at their home on the first day we come to service their property.
                I have had one person get away without payment because she called said payment was in the mail and asked if we would wait a couple days to service the lawn because they were leaving town. We did wait those days but the payment never came so she is not getting service until that bill is remedied and if she wants us to continue servicing her property payment is going to be made in advance before we come out to the property.

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                • #9
                  Some lcos will actually send out invoices in the beginning of the month so their customers actually pre-pay for the month. If you can change your customers over to that, then good for you!

                  You could also ask if customers want to prepay for the year, next season and then give them a 10% discount or something like that.
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                  • #10
                    Quote[/b] (Team Gopher @ Oct. 12 2007,10:28)]Some lcos will actually send out invoices in the beginning of the month so their customers actually pre-pay for the month. If you can change your customers over to that, then good for you!

                    You could also ask if customers want to prepay for the year, next season and then give them a 10% discount or something like that.
                    i know there is several lawn care contracts here on the forum, which one is the most downloaded that people use

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                    • #11
                      I charge on my monthly contracts month in advance. Here is copy of my contract I use.

                      PNP LAWN CARE CONTRACT

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                      • #12
                        I don't know but I think it comes down to how you want to run your business.

                        Some lcos dont want to use contracts. Others do. Others want a flat fee charged per month across the entire year regardless if they show up to cut a lawn.

                        Which would work best for you and your situation?
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                        • #13
                          Ok, here's my take on things...

                          I would put them on a contract. One flat fee each month.

                          (the following was taken from http://www.greenandcleanga.com/services.html)


                          If you do the math on that, it's 33 visits. Let's say your services are $40 per visit to their lawn. So $40 x 33 = $1,320. Now you want to charge them a flat fee monthly. So $1,320/12 = $110. So your monthly fee would be $110. Now in the late fall and winter months, you'll be getting paid more for visiting less... but in the spring and summer months, you'll be working more than you're getting paid.

                          I feel like you're doing the customer a favor spreading the payments out... and you're also doing yourself a bit of a favor, too... if you have 50 contracts... and they all pay the same... then on the months that you do only one visit, then you have 50 visits that month... but you're getting paid the same as you would be in the summer months when you're making 200 visits... $5,500... Not bad, eh?

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                          • #14
                            Quote[/b] (pmblair @ Oct. 12 2007,11:22)]Ok, here's my take on things...

                            I would put them on a contract. *One flat fee each month. *

                            (the following was taken from http://www.greenandcleanga.com/services.html)


                            If you do the math on that, it's 33 visits. *Let's say your services are $40 per visit to their lawn. *So $40 x 33 = $1,320. *Now you want to charge them a flat fee monthly. *So $1,320/12 = $110. *So your monthly fee would be $110. *Now in the late fall and winter months, you'll be getting paid more for visiting less... but in the spring and summer months, you'll be working more than you're getting paid. *

                            I feel like you're doing the customer a favor spreading the payments out... and you're also doing yourself a bit of a favor, too... if you have 50 contracts... and they all pay the same... then on the months that you do only one visit, then you have 50 visits that month... but you're getting paid the same as you would be in the summer months when you're making 200 visits... $5,500... Not bad, eh?

                            i have.....
                            18 of my accounts pay $45 bi-weekly = $90
                            11 of my accounts pay $70 bi-weekly = $140
                            7 of my accounts pay $50 bi-weekly = $100
                            14 of my accounts pay $40 bi-weekly = $80

                            can u figure that,lol

                            bringing in the money!!!!!!



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                            • #15
                              Quote[/b] (Team Gopher @ Oct. 12 2007,10:43)]I don't know but I think it comes down to how you want to run your business.

                              Some lcos dont want to use contracts. Others do. Others want a flat fee charged per month across the entire year regardless if they show up to cut a lawn.

                              Which would work best for you and your situation?
                              Steve I charge flat monthly charge. Rather I cut it 5 times a month or once month in the winter.

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