Types of Billing

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

[Steve]

Lawn care business tips

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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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.

[Steve]

Any thoughts on sending out half your bills mid-month and the other half at the end of the month?

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

[Steve]

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?

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.

[Steve]

What about improving cash flow? Is that something of importance? Would staggered billing help that?

I imagine it could do that.