Payment Due?

[turf rat]

I am new to the business and was just wondering, Is it better to collect payment after each job, or send an itemized bill each month to customers? Right now we have a little of both and are seeing pros and cons of each.

[myrlin]

Lawn care business tips

That is total up to you to make that call. It what work for you. BARRY

[Steve]

Originally Posted by [b

Quote[/b] (turf rat @ May 02 2007,7:50)]I am new to the business and was just wondering, Is it better to collect payment after each job, or send an itemized bill each month to customers?

Right now we have a little of both and are seeing pros and cons of each.

Hi turf rat,

I think a lot of new lawn care operators have a pay as you go structure. It's good on one side that you get payment right away so it helps with cash flow. But as you grow you may find some customers don't want to handle it that way and also you won't want your employees collecting cash payment from customers.

Most lawn care operators do move towards the path sending out bills. If cash flow is a problem, you can always split your customer base in half and send one half their invoices mid month, while the others get their invoices at the end of the month.

Any thoughts on this?

[turf rat]

Thanks for the suggestions!

I do agree. Sometimes when first starting out it is better to colelct the money up front or right after the work is completed. If you stretch it out to a month when you first start in the busienss, customers may not pay you because they feel you are not really a business.

After you have got yourself setup after the first year, then do the billing monthly. When you start to do monthly billing you are really stretching your credit towards the customer. For example, you mow four times in the month, and send out the bill and it is due within 21 days. Well, during that 21 days time you will have mowed it another 3 times. So the customer is basically having 7 mowings on credit.