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How Long Do You Wait for Your $$$$


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  #1  
Old 02-10-2012, 05:24 PM
breslinnet breslinnet is offline
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Default How Long Do You Wait for Your $$$$

I am sure this question and answers are here somewhere but maybe not recently. My focus in last year has changed from a primarily lawncare/landscape service w/secondary services to primarily window washing with landscape/lawn maintenance as secondary. This is due to purchase of an existing company with a large customer base.
Anyway, I am curious in referance to commercial monthly clients how long you should wait for payment when you operate as "due on receipt" Next question then is at what point you send a remider without appearing desperate or pushy and do you perform the next months service w/out receipt of prior months payment??
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  #2  
Old 02-11-2012, 06:38 AM
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All my contracts state Net 30 Days. 2% ad daily there after.
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Old 02-11-2012, 07:16 AM
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i bill ahead so i never wait for money.

the plumber, the electrician, the doctor, the food store and any store in the mall dont give me squat until i pay so why should the landscaper be any different.

in this day and age if you work all month and then bill after the work is done and sit there like a nice little boy waiting to get paid , then you deserve to wait to get paid.
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Old 02-11-2012, 10:44 AM
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Quote:
Originally Posted by dpld View Post
i bill ahead so i never wait for money.

the plumber, the electrician, the doctor, the food store and any store in the mall dont give me squat until i pay so why should the landscaper be any different.

in this day and age if you work all month and then bill after the work is done and sit there like a nice little boy waiting to get paid , then you deserve to wait to get paid.

^ It's sad that most clients have a hard time understanding this logic. Funny, but really sad.

Also, if you don't charge in advance and you 'wait', The client might pretend to have forgotten about you, and will never pay up unless confronted. Sneaky buggers.
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Old 02-11-2012, 05:06 PM
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All my contracts state Net 30 Days. 2% ad daily there after.
Theabove is just for commercial jobs
Joe Home owner pays up front on at time of mowing.
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Old 02-11-2012, 06:13 PM
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I don't have a contract for clients to sign yet (Bad Hedgemasted, BAD!), so I can't really ask for "X" more for paying late.

My options are pre-pay, or pay at time of service. I generally won't cut again unless payment is current. I have, on occasion, but only for those who I know are good for it - everyone forgets once in a while.

When you are set up to collect at time of service, you have to accept that sometimes people do forget to leave your money out for you and you'll have to deal with it the best you can. I've found that most of my clients will actually leave me MORE than is due when I come by the next week as an "apology" for not having my pay out the prior week.

The problem with letting people slide is that after three or four missed payments, they have to reach in the wallet for a sizable lump of cash, and depending on the client's financial situation, it could prompt them to rethink things.... "Hmmm... maybe every OTHER week would be better?"
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Old 02-11-2012, 06:52 PM
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It is common for a commercial account to pay within 30 days of getting the invoice, so in actuality, you can expect to wait 60 days from the first cut. You service them one month, send a bill for that service you just performed, then it should be paid by the end of the next month. Ex. you serviced them the month of May, send an invoice on May 30, that invoice should be paid for by June 30, for the month of Mays services.
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Old 02-11-2012, 06:54 PM
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My apologies. I missed that this was about commercial accounts - of which I have none.

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Old 02-11-2012, 07:22 PM
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actually with commercial ,its common for them to pay in 30,60,90 days ,which is why whenever I am looking at commercial properties the first question I ask is what payment schedule they are on so I can adjust my price or my middle finger according to my being interested in the work .Generally the larger the company, the slower they pay ,but there are always exceptions [beer companies pay within a week for instance ] .
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Old 02-13-2012, 01:57 PM
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Quote:
i bill ahead so i never wait for money.
When you see commercial customers wanting to not pay for 30, 60, or 90 days, what is your advice on the best way to get them to prepay?

I would think, if they have gotten used to paying much later with previous lawn care companies, they wouldn't be too keen on paying before hand.
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