How to collect payment

juntjoo

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Sep 12, 2017
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I see most guys/gals charge in average, like *$75/month for the standard "mow & blow" which is the average cost of mowing each week during season and twice a month off season, so supposing a customer paid either for a season or an off season then ended the relationship, *someone would get screwed no? I'm considering charging per cut to avoid this. How do you guys avoid this issue, if it even is one?*

Also, if I'm not mistaken most charge after the work. I'm thinking about charging before, allowing maybe a job to go by without payment, but charge a penalty for late payment, like *$5 to encourage customers to keep funds in their account like prepaid cell phone plans. Is that doable?*

How do you do "auto-payments" anyway? Are there CC payment systems that automate that or should I just leave it to an assistant in the beginning? And what DO you do when you charge a customer the average price during season (where you're doing more work per what you're collecting)and they then stop using you? This must be every newbie's 1st question.*

And how about an auto check collecting system, like what you can do with a standard bank these days with "bill pay" where your bank will send a check on schedule to your bill collector, whoever that may be.*

​​​​​​​I know, big question, sorry, but these are important. Maybe there is a comprehensive thread on this someone can refer me to? Thanks in advance for your input.*
 

Darryl G

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I just bill my customers monthly at a per mow rate along with any extras. Extras might include any hauling/disposal fees for leaves & grass I had to haul away, storm cleanup out of the ordinary that was necessary in order to mow, and on rare occasions an excessive growth surcharge, in addition to bed, hedge or shrub work etc. I bill spring and fall cleanups on an hourly basis. I have one mowing customer that I bill hourly because the amount of effort required to mow their lawn is pretty variable. It's anywhere from $75 to $150 per cut.

I bill "Net 15" on most of my accounts but I'm happy if they pay within 30 days. I usually end up having a few customers who haven't paid by the time I do the next monthly invoice and I just generate a statement. I generally don't charge any sort of late fees unless the account becomes seriously delinquent, in which case I charge interest at 18% on amounts past due by over 30 days. I send a self-addressed envelope with my invoice and my customers pay me with personal checks or through their bill pay system.

Not sure that actually answers any of your questions, but that's how I do it. Note that I'm in the Northeast where we don't mow at all from around mid November to mid April and annual mowing contracts aren't much of a thing unless it's a commercial property or condo etc.
 
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computer

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you're thinking marketing and logisitics!! I love it. This is my thing---

It depends on
1) what your mowing customer market is comfortable with
2) what you can do

If you violate #1, you have to frame yourself with some kind of perks for their uncomfort. That is the only way they will pick you over a service they're comfortable with.

Obviously, with #2, maybe you only have access to a bike with a bike trailer. You can't do a box truck with employees, so utilize what you have on hand.

i.e. if you're an estranged 18 year old looking for beer money but want to take market share from a commercial mowing service, you may frame yourself with the same prices but more careful, personalized services. Learn about grass types, rollers, buy an edger instead of using weedeaters to edge to get that clean cut. This differentiates you, and your market share from the commercial mowing market will grow RAPIDLY. People love personal service they would not expect from a service like this.

i.e. if you're a commercial mowing service and you want to take market share from the 18 year old beer money market, you may simply lower your price and make your employees look more professional, make sure you're insured, bonded, licensed, maybe offer quick extra services for free, like an employee pulls weeds in your garden for a few minutes if he has nothing to do instead of taking a break. This differentiates you, and your market share from the 18 year old beer money market will grow RAPIDLY. People love personal service they would not expect from a service like this.

see what im sayin?
differentiating takes effort, time, and money. So, here's a plan if you don't feel like differentiating:

Everything you listed is what a mowing customer commercial market is comfortable with.

-If you're doing residential yards for baby boomers who romanticize the idea that you're an 18 year old with a bike, you can just tell them to leave $30 in cash in an envelope on the back door or something sketchier than an automated system. They will love participating in your sketchiness. It's part of the romance!

-If you're a commercially painted and wrapped box truck with employees, there is some tech you can utilize or build to personally fit your needs that would best suit billing people.

To fit that #1 rule, you have to fit what they are expecting of you.
If you're 18, they likely can expect a no-tech solution, they can 'play along' with your quick cash business by doing shadier things like leaving money in an envelope. They'll love being apart of it! It's why they hired you instead of a commercial landscaper.
If you're a box trucker, automatic email invoices confirmed by an employee after service is completed is expected. People who hire these kinds of landscapers are just happy to get their yard done and do not want to participate as much in the process of lawns. They hire them because they love being "just another yard"

Do what suits you!
 
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