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General Business Discussions A place to talk about general business discussions.

Billing customers


General Business Discussions

A place to talk about general business discussions.
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  #1  
Old 03-10-2009, 12:42 PM
tomcat172002
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Default Billing customers

Hi,

I have a question regarding billing customers. This is my second season and I have picked up my first new customer. The reason she left her old grass service was that in August she got billed 4 times that month even thought she only got her grass cut twice. I have heard that some older people get charged 32 weeks a year regardless if they cut or don't cut. I only charge if I cut if its too dry then I don't cut and don't charge them. What is the industry standard? Do you charge on a per year basis? I just charge per cut I feel thats fair. What do you guys think?
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Old 03-10-2009, 03:42 PM
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I have both per cut & annual customers who are billed monthly. With these I multiply the number of cuts typically used to service the particular turf type, for this area in a normal year by the per cut rate & divide by 12. they pay the same year round. Heavy rains or a longer season means more cuts with no change in rate for them. A light year means less cuts to be done, same rate. It's done on an "average year". It amy take a little while in business to get these numbers accurate for your area though.
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Old 03-10-2009, 10:20 PM
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Quote:
What is the industry standard? Do you charge on a per year basis?
Well you can charge per cut or a standard rate across the year. I think if the customer is on a budget and wants lower monthly payments, they may opt for the same monthly payment plan option.

This just might come down to personal preference from the customer. But no matter what they need to be explained the concept so they don't feel like they are paying for something they are not getting.

Do you have a preference of billing per visit vs. annual monthly billings that are the same throughout the year?
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Old 03-13-2009, 03:16 PM
tomcat172002
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I usually charge per cut. If I don't cut due to weather then I don't charge I think thats fair. I usually go around once a week to cut. I mark down on a spread sheet when I cut then I give out invoices at the end of the month.
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Old 03-13-2009, 04:59 PM
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That's why I love Gopher. If you give a per year or per cut price, it gets it done
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Old 03-13-2009, 10:07 PM
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I mostly charge per month. I just explain that I may work a little less through the winter, but it evens out when I am mowing their lawn when it is 115 deg. through the Summer. They understand that I have bills to pay all year. Most people are ok with it, but like Steve said, you MUST explain it to them in the beginning how you will be billing them.
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Old 03-14-2009, 03:06 AM
8307c4
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Quote:
Originally Posted by tomcat172002 View Post
Hi,The reason she left her old grass service was that in August she got billed 4 times that month even thought she only got her grass cut twice. I have heard that some older people get charged 32 weeks a year regardless if they cut or don't cut.
Yeah, and maybe she never paid a bill back in July
Then again maybe she did...
But why would I want to hear about the "last guy?"

It's like, what am I supposed to do about it?
Oh I get it, I'm supposed to roll my eyes in the back of my head and throw my hands up in the air, and then make a
big show of how I would never ever do such a thing, right in front of that customer, that what I'm supposed to do?

Oh, to answer a question, there is no Industry standard concerning billing methods that I know of.

Last edited by 8307c4; 03-14-2009 at 03:18 AM.
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