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

Types of Billing


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Old 04-01-2006, 02:47 AM
tiedeman
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I thought that I would share this with fellow board members here in regards to types of billing.

When billing a customer, present the customer with multiple billing options. The two most popular that my customers are using are:

1. 12 Month Flat Rate Plan

2. 5% Pre-Payment Discount for the Entire year.


Just something to think about
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Old 04-01-2006, 02:55 AM
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Do you stagger the dates you send out your bills? Or do you send them out at the end of the month?

What payment terms do you suggest using?
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Old 04-01-2006, 02:59 AM
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I always send out bills the end of the month, and they are due within 21 days. I tried the 30 day approach before, but I just didn't like sticking my neck on the line.

The flat monthly billing is a godsend. When you have slow times, off season during the winter months, or drought conditions, the flat monthly rates come in handy.
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Old 04-01-2006, 03:07 AM
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Any thoughts on sending out half your bills mid-month and the other half at the end of the month?
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Old 04-01-2006, 03:10 AM
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I have tried that before about 6 years ago, and I am thinking about trying it again here soon.

I think what I plan on doing for the time being is, all maintenance customers will be billed at the end of the month, while all application customers will be sent a bill the next day after service
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Old 04-01-2006, 03:29 AM
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What do you feel are the benefits to sending out bills at the end of the month, or sending half out mid month / half out end of the month?
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Old 04-01-2006, 03:35 AM
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For me it's convenience. I know exactly when the bills go out at the end of the month, and know exactly the time they should be in the next month time. Basically, I know when all of the customers invoices are due, and if someone is late, the chance of me missing is less....at least I think.
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Old 04-01-2006, 03:36 AM
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What about improving cash flow? Is that something of importance? Would staggered billing help that?
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Old 04-01-2006, 03:40 AM
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I imagine it could do that.
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