There’s a debate going on in the landscaping forums about when the best time to bill is.
- Money due at the beginning of the month for future work
- Bill sent at the beginning of the month to be paid in 30 days
- Bill sent at the end of the month for immediate or 15/30 day payment
- Annual/Quarterly prepay discounts
I’m a big fan of getting payments before doing any work. I also offer an optional annual prepay with 10% off the total price. In uncertain financial markets, it’s the easiest way for my clients to lock in a nice discount. That money sitting in a savings account would earn a max of 6%. I offer it knowing that 10-15% of customers will take me up on it lowering my maintenance revenue by only 1-1.5%. That extra cash is essential for a small growing business in the spring. It allows me to send out ads, give thank you gifts and a cushion in the bank for any surprises. Oh, and the clients love it because they save money of course!
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