Announcement

Collapse
No announcement yet.

What way is best?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • What way is best?

    Back in the mid 90's I had a lawncare business and will be starting another one in 2009. My question is this. How do you guys think is the best way to collect payment?

    By reading some of the other posts I know that some of you might ask why I'm waiting until 2009. I also own another service business and we are 100% full as far as clients go. Not to mention that our busy season is coming.

    Thanks for your help.

  • #2
    what other kind of service business do you run ?
    I collect payment in two ways check by mail, or cash/check on site, I use all of my monthly payments to take care of expenses, and the cash for just day to day stuff. It works out fine for me, just have to make it balance out.

    Comment


    • #3
      House cleaning & carpet cleaning. The thing with my business now is that if payment is not on the counter, we do not complete the work. I just worry about getting ripped off in the lawn business.

      Comment


      • #4
        My brother started to get pre-payments. He got tired of being stiffed and it was easier to stop an account when the money runs out.

        Personally, like above, I bill them except for those few that want to pay right on the spot. My brother-in-law hates it when folks pay him while he's there. He feels it takes up too much of his time. Me personally, I don't mind at all. It keeps me in front of them, no ditching the bill and they would be pretty unlikely to fire you because you will always have an opportunity to hear what's on their mind.

        I offer to all my accounts that they are to call me if I just pulled away or it's several days later - I will be right there to take care of whatever they need. It is those folks that don't tell you they are unhappy that are most dangerous to your business. You never get a chance to fix whatever is on their mind. You will lose opportunities to gain referrals. You will also lose the opportunity to improve. I feel that every time I show up and do a lawn I am working to keep that job all over again. I take it very seriously and want to know the minute they are unhappy.

        But then again, I plan to be one of the biggest LCO's in the area. Sorry I got a little side-tracked there but you got it.

        Comment


        • #5
          ...and thats another thing I hadn't thought about. Those that want to pay while it is being mowed. This will be an all employee type of business...I won't ever be there when it's being mowed. I guess another potential problem with payment...sigh...

          Comment


          • #6
            I highly doubt this will be problem. You either let the accounts know they are to mail it, or you trust your guys. I have always felt that if you cannot trust the people you hire, why did you hire them or why are they still working for you?

            That is not to say you don't systems in place to keep people honest.

            If anything, it will be those times that the crew picks up a new account and you don't even know about it. Every week they use your time and equipment but collect the money. A couple of those and they could have a pretty nice side job. If they spent an extra 20 mins a day doing other accounts, how would you know? That is a possible $100-$150 missing per week for you and yet you could be paying 1/3 or more of that in wages, not to mention other liabilities like comp.

            Comment


            • #7
              Well, I've owned a cleaning company since 1998 with others actually inside of clients houses....do I trust people? I trust them but do I TRUST them? I never trust anyone...if that makes any sense. I do because I must...but I've come to know workers all too well. lol Almost have more problems outside the house then there is inside the house. lol When I had a lawn service before I did all the work, thats why this is all new to me with workers.

              Comment


              • #8
                My question is this. How do you guys think is the best way to collect payment?
                Some lawn care business owners will offer a 5 or 10% discount if you prepay for the year, early in the season.

                Or you could accept credit cards.
                - Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
                Download your Free trial of Gopher Lawn Care Software.

                Comment


                • #9
                  My question is this. How do you guys think is the best way to collect payment?
                  Just starting out you might want to think of weekly, (you cut or service the customer you get paid) this will keep money flowing. this way will help allow you to keep up with expenses.

                  After you get established better then you can go to the Monthly billing.

                  I would never take a season's "pre-payment", to many things and go wrong to get yourself into trouble with this type of business practice.

                  Business's can't survive with out monthly cash flow.

                  Comment


                  • #10
                    "Monthly cash flow"

                    Tell me about it. Last winter I did many of my snow accounts at a 3 month billing. By the end of winter I was working with my own money - well sort of. It sucked anyway.

                    Comment


                    • #11
                      When I mowed back in the 90's the deal was for them to leave the check some place because 95% of my clients were at work...sometimes they'd forget (riiight) but I'd still mow anyway...then have a hell of a time getting paid. This is what I'm trying to avoid since I am WAY more business smart this time around. So, I'm guessing when you say monthly billing that means you mow they pay after you mow...dang, I just hate that thought. lol Do you get burned much? Anyone use Pay Pal?

                      Comment


                      • #12
                        When I mowed back in the 90's the deal was for them to leave the check some place because 95% of my clients were at work...sometimes they'd forget (riiight) but I'd still mow anyway...then have a hell of a time getting paid. This is what I'm trying to avoid since I am WAY more business smart this time around. So, I'm guessing when you say monthly billing that means you mow they pay after you mow...dang, I just hate that thought. lol Do you get burned much? Anyone use Pay Pal?
                        I have never had an account that didnt pay me. Sometimes it took a week or two, but as long as you continue mowing, they still have to pay you. Some people will skip a week or two until payment comes in, but at the end of the month they are missing half a months payment.

                        So my policy is to keep mowing, and keep collecting. If a full month goes by, then I would drop them and continue my collecting efforts for 2 full months pay (which has never happened). But I might add, I used to be a collection manager, trained people on collection in the field and over the phone. We used to hunt people down and do anything within the law (and sometimes outside the law). I used to have to collect on 400 past due accounts every week. My expected goal was to have a past due % of less that 5.9 of the 400 by every Saturday, which I hit the goal almost weekly. So I have no trouble collecting past due accounts.

                        I know, I hate collectors as much as the next person, but I was really good at it, and it afforded me to buy my home, so no complaints here!
                        Northern California

                        Comment


                        • #13
                          Thanks for your help everyone.

                          Comment


                          • #14
                            pre paid self addressed envelope

                            i was told to include with the bill a prepaid self addressed envelope so all they have to do was put the check in and its easier for them has anybody used this tactic?and does it work?

                            Comment


                            • #15
                              When I had a landlord for another business, he would do this. Most times I wouldn't use it because I had special envelopes for checks that showed the addresses. Also I had large checks and he would send small envelopes. Only slightly annoying. Small thing I know.

                              But multiply the cost by say 60 accounts and you've got to mow a whole lawn just to buy stamps and envelopes each month.

                              Comment

                              Working...
                              X