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Starting a lawn care business. How to start a lawn mowing business, lawn care business, or landscaping business. If you are starting a lawn care business, ask your questions here.

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Starting a lawn care business.

How to start a lawn mowing business, lawn care business, or landscaping business. If you are starting a lawn care business, ask your questions here.
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  #11  
Old 02-06-2013, 06:05 PM
yourscape yourscape is offline
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Payment is the #1 thing I am changing this year. Last year I sent out invoices out the first of the month due by the 15th for the previous month. On the 15th I always had 2 or 3 customers that were late. I always felt that I was wasting at least a 1/2 day every month chasing down over due payment. This year I am requesting prepayment at the rate of 4 weeks per month (basically on months with 5 week they get a free service). If they chose not to prepay then I will need a credit card to make payment at the end of the month.

It will be interesting how this will turn out with my current customers. Like it was stated in this post prepayment is on a lot of things.
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Old 02-07-2013, 05:34 AM
LawnBoy0311 LawnBoy0311 is offline
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Originally Posted by yourscape View Post
Payment is the #1 thing I am changing this year. Last year I sent out invoices out the first of the month due by the 15th for the previous month. On the 15th I always had 2 or 3 customers that were late. I always felt that I was wasting at least a 1/2 day every month chasing down over due payment. This year I am requesting prepayment at the rate of 4 weeks per month (basically on months with 5 week they get a free service). If they chose not to prepay then I will need a credit card to make payment at the end of the month.

It will be interesting how this will turn out with my current customers. Like it was stated in this post prepayment is on a lot of things.
Let me know how it works out! I'm doing just about the same thing. I got too tired chasing down money, or the stress of not knowing if your even going to get paid. I have a full service quote to do today, I explained to her everything is pay in advance, she said she's more than fine with that as long as the rates are comparable to others. So we'll see how it goes....
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Old 02-07-2013, 10:27 PM
Norcal Norcal is offline
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Originally Posted by dpld View Post
when i did 100% residential i had about 75% pre-paid accounts and it worked out excellent.
but the catch is all of the homes i serviced where people who were making high 6 digits and low 7 digit incomes.
plus, you need to give them something in return like a discount and i offered 20% off for pre-payment of the entire year and 10% off auto-pay with the credit card on file.
the people that have the money to throw away will gladly write a check for the full amount if it can save them money but the everyday person who is just getting by will not be as receptive because the savings will not out weigh the hardship of spending money that they don't have to spend just yet, like october's services in april.

as far as the people who are slow pay, there is no way they would go with a pre pay. they are slow pay because they are broke @zzes spending more then they make.
the only choice is for people like that is bill ahead instead of behind and discontinue service until payment is made or just kick them to the curb all together.

i know it is easier said then done and i have done all of the above and it works. but as a business you need to set the standards from the start and adhere to them even if it means a little pain in your pocket because once someone gets away with it they will keep doing it.

you always have to remember the reasons as to why you went into business, to make money, money and money and i almost forgot to mention, make money.
as soon as a customer starts making it hard for you to make money or makes it difficult to get your money when you want it then you have no use for that customer.
as long as the money is there you will be reliable, courteous, professional and when it's not you just go away and disappear.

the only business that will continue to deal with a deadbeat is a bank because the deadbeat owes them money and they have no choice but any other business will cut and run when they get paid before the clown can owe them again.
I am with you most of my accounts are pay at the end of the month last year i would let them get a month behind and then discontinue service. Well I had to start weeding the slow pay account out now if the current accountys get behind i only let them go 2 weeks and usually I get a call. Hey did you forget me this week and My say hey did you forget about me last month and they pay up if they dont leans work nice as well I usually dont like people to pay for things the havent got yet like your cable provider and the phone company so I dont make people pre pay
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