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Trials & Tribulations - The drama of running a business and of life. It's not as easy as it looks. Running a business is full of drama. Customers, employees, money, family, time. You name it, it's a problem. Share with us your drama and how you handled it.

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Trials & Tribulations - The drama of running a business and of life.

It's not as easy as it looks. Running a business is full of drama. Customers, employees, money, family, time. You name it, it's a problem. Share with us your drama and how you handled it.
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  #1  
Old 04-30-2012, 10:03 AM
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Default Pay me now.

I was having trouble getting paid from 2 customers..After 1 month I cut my loss and droped them.

I have picked up several new properties after I droped the NON PAYERS.
I requested to be paid at the first of the month in advance (so as I would not get the shaft) with any extra work billed monthly. And I gotta tell yall I have not lost a sell yet. I see a patern with this... Pay me month to month, if you can not afford me any longer at least we can be square. I have had every new customer of mine write a check for one month of service on the spot with no hassle or BS.

My question to you??

How does this make my company look in the customers eyes?

I only bill this to homeowners.
Commercial accounts are billed monthly.
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  #2  
Old 04-30-2012, 10:21 AM
SECTLANDSCAPING SECTLANDSCAPING is offline
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I bill my commercials the same way unless they have their own payment terms in the contract. This has worked for me too but now I have a commercial account a month behind. There about to be double billed.
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Old 04-30-2012, 06:35 PM
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I don't have anything set in stone yet, but I tell people that my payment options are "at time of service", or "pre-pay 2-4 cuts".
The only ones I send a "bill" to are people who don't live at the properties I'm cutting. (rentals)

Most pay per cut, but some pre-pay for the month because they like the convenience.
I won't cut more than once without being paid up. I've only been burned by two people (last season) and each was for one service that was unpaid. I won't go back until I'm paid for the previous cut.
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Old 05-01-2012, 04:13 PM
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If you can get paid in advance, that is great! Have you considered offering a discount to get prepaid for the year?
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Old 05-01-2012, 04:39 PM
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Quote:
Originally Posted by Steve View Post
If you can get paid in advance, that is great! Have you considered offering a discount to get prepaid for the year?
Me? Nope.

My prices are already lower than they should be in many cases. No discounts.
Also, I can only think of maybe one or two clients who could actually afford to pay out that much in one, lump sum.
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Old 05-01-2012, 04:41 PM
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Default Stability

You guys lose money when you charge per cut.

Make it so that the client will have to pay regardless if you show up (because of bad weather, etc).

You want stability at all times.

A client might say, "I don't want to pay for work you didn't do". The fact is, payment should have little to do with the work you do.

Charge similar to what you'd expect if you have a plan with a cell phone provider. Regardless if you aren't using your phone, you still have to pay the minimum.

-

My season has approximately 24 visits per customer;
$551.88
With rain, I may lose 6 visits;
$137.97

The way I have it, the clients will still pay me the $137.97 that some of you are missing out on!

If a client of mine doesn't want to pay because I was not able to show up 6 times due to rain (it gets bad here), he has 2 options: pay, or find someone else.

The client will usually come crawling back, because our service is of high quality. To keep the quality up, we need MONEY.

-

On topic...

My clients submit to me three (3) post-dated cheques.
e.g.;
1. May + June = $183.96
2. July + August = $183.96
3. September + October = 183.96
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Old 05-02-2012, 10:33 AM
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Scott, as you have implemented that policy in your business, how has that changed things for you and improved your operations?
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Old 05-02-2012, 11:19 AM
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Quote:
Originally Posted by Steve View Post
Scott, as you have implemented that policy in your business, how has that changed things for you and improved your operations?
I'm basically avoiding a ton of stress by not collecting money from each client every month.

There is no one to chase!

Unfortunately, all cheques were due yesterday and not everyone submitted them to me. No big deal, chasing clients one time is a lot better then 6 times!

Once I get all their cheques for the entire season, I'll be free as a bird!

-

A lot of my posts on this forum were all about how annoyed I was when it came to collecting money monthly, this will really turn things around!

Everyone should utilize post-dated cheques, it's so simple!!!!!
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Old 05-02-2012, 03:58 PM
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This system seems to be working all customers paid me for May. In Fl, we cut 42-48 times per year depending on our winter.. Its kinda hard for folks to pay for a year of service up front between 1,500.00-2,000.00 per year.
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Old 05-02-2012, 04:07 PM
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Quote:
Originally Posted by Steve View Post
Have you considered offering a discount to get prepaid for the year?

I think I will look into that, maybee 10% or 5 yards of mulch free...I get mulch for 20.00 per yard...now my minds runnin 90 to nuthin Im going to think about this one thanks.
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