Settling on the wrong down payments or bird control payment terms can alienate your clients and create disruptions in your cash flow. Bird control entrepreneurs need to identify optimal terms that will result in positive client relationships while ensuring that you get paid faster. Analyzing client history is an essential point while choosing ideal down payments and bird control payment terms.
Before setting up your bird control project's payment terms, you need to remember that extended payment terms may jeopardize your business. Think about maintaining a steady cash flow while structuring down payments and payment terms. As you work to get more bird control projects, avoid extending payment terms for extremely long periods.
Do you want to win more business and boost your cash flow (and profits)? Read on to find strategic payment terms that will appeal to more bird control clients and boost your sales.
Typical Bird Control Payment Terms
Typically, ideal bird control payment terms should ensure that you get paid promptly. The net 30 rule is quite common among small business owners. Under these invoicing terms, your client should complete their payment within 30 days of receiving the invoice. Some business owners opt to bill their clients at net 15 or net 7 in a bid to maintain a seamless cash flow. While these options might work well in keeping your business afloat, you run the risk of jeopardizing your client base.
If your clients are reluctant to adhere to your payment terms, there's a good chance that you've not aligned these terms to the industry standards. It is essential to stick with the industry norms to avoid losing your clients to competitors. Conducting sufficient background checks and industry research places you in an excellent position to ensure that clients pay on time and come back to you for more bird control projects. Maintaining a positive cash flow largely depends on how well you set up the correct payment terms.
Deciding Bird Control Payment Terms for Your Projects
When choosing your bird control project's payment terms, the 'one-size-fits-all' approach hardly bears any fruit. Given that you service different clients, certain payment terms may not work for clients across the board. You may need to ask for a deposit upfront from a new client. However, the terms may be slightly flexible for a client with excellent payment history.
You might also consider introducing installment billings for clients who order high-dollar bird control projects. Here are a couple of factors you can keep in mind while choosing ideal payment terms.
1. The Project's Size
Avoid spending a lot of time chasing a smaller invoice. You could ask for immediate payment or a net 10 deadline for bird control projects that are relatively inexpensive. Simple bird control installation projects that only last for a single day can fall under this category.
On the other hand, you may need to offer the client a more extended deadline for larger invoices and intense bird control projects like perimeter defenses. Ask for reasonable upfront deposits from first-time clients. Such steps help to minimize the risk of nonpayment.
Upfront deposits also ensure that you set the right expectations for your clients from the onset of your project. Ensure that you have candid discussions with your clients to find amicable payment terms that fit the bird control project.
2. The Client's History
Emphasizing a client's payment history will work best for you while setting up bird control payment terms. Check your clients' business credit reports to find out how they have paid their bills in the past. You may need to ask for upfront payments for clients who have a reputation of being tardy with other bird project suppliers. A short payment deadline could also help you out in this situation.
A new client also comes with some level of uncertainty. Prudent business owners can ask for payments at certain phases of a project. You could also set specific milestones and require clients to make payments after each milestone. You can maintain payment terms for clients who've not posed any challenges before.
3. Interest and Late Fees
Are you looking to enforce your payment expectations with your clients? Consider introducing interest charges or late fees to your payment terms. You could charge an extra 2% of the invoice amount for clients who delay in making payments. Send a friendly payment reminder email to clients if they don't keep the set terms.
Other additional steps you can take to optimize your bird control payment terms include:
- • Take time to understand your clientele. Assess your client's credit history before deciding whether you'll extend their payment period or ask for higher down payments. The idea is to create customized payment plans that work best for specific clients.
- • Ensure that your payment terms correspond to the invoice's amount. Clients who implement more significant bird control projects might require more time to pay for the invoice. Providing extended timelines helps you build trust with your clients and can help you maintain repeat clients.
- • Create transparent fees and terms in your invoices and contracts. Clients prefer clear payment plans that minimize confusion when they start making payments. If your payment terms are not straightforward, clients might choose bird control services elsewhere. They may also recommend your competitors as alternatives for bird control projects.
- • Offer timely incentives to clients. Consider offering early payment discounts that will encourage clients to clear their bills in good time. Such incentives will also make you stand out from the crowd and attract multiple bird control projects. Alternatively, you could add late fees that minimize your risks of accruing any losses.
Seek Further Guidance About Bird Control Payment Terms From Bird Control Experts
While providing your bird control services, work on receiving payments as soon as possible. Once you are clear on your preferred payment terms, ensure that you note all these terms on invoices, contracts, and purchase orders. Remember to include early payment discounts and late payment fees.
With streamlined down payment structures and payment terms, you'll have an easier time growing your bird control business and reaching more clients. Do you want more information about managing your bird control business? Contact us today!
About Bird Barrier
Bird Barrier is a leader in innovative technology designed to prevent birds from landing, roosting or nesting. We specialize in urban bird control to remove birds humanely and effectively. Our website, birdbarrier.com, hosts a wealth of content to help people understand and identify bird control solutions for various problems with pest birds. Please contact us if you need help with a bird related problem. You may also benefit from our free guide, Bird Deterrents: The Complete Guide.