I know of a pet sitter who does this, and the idea seemed nightmarish to me, because of the thought of having to keep track of credits when people cancel or the pet sitter cancels. I was laid-up last month with a muscle tear and one of my subs implemented the monthly billing method. It was a disaster. My client had to cancel and the pet sitter had to cancel several times during the month, and when she gave my client the refund check it was off by about $88.00! My client was confident that the pet sitter would eventually figure out that she was wrong, but it perturbed my client quite a bit. Perhaps if it was her own client, she would have been more careful, but for me, I find book keeping challenging, I don't want to make it even harder.

I guess if you're really good at book keeping, and keeping track of credits, this method would work. I myself, would not like it if my dog walker charged this way. I am the kind of person who anticipates mistakes, so in this case it would cause me much stress, having to double-check the bill,my calendar, etc.

I bill my clients bi-weekly, invoicing them on a Thursday, for example, if it's M-F. Some of my clients prefer the paper invoices, some prefer an emailed invoice. It's a real pain on invoicing night, I must say, I dread it!!!! I PDF the emailed invoices and this takes more time. I also used Word to make my invoice, since it looks nicer than Excel. Of course this means I have to use a calculator. I know some pet sitters who don't invoice, but just email their clients (generally once a week or every two weeks) the amount they owe. I have considered doing this, but wouldn't you still have to write all the dates and amounts and then total it up, so the client can see what they're paying for? If you're already going to that trouble, then invoicing seems like a more professional way to go.

Hi Erika, thank you for your comments and sorry you get injured and hope you are fully recovered?

re.: the idea seemed nightmarish to me, because of the thought of having to keep track of credits when people cancel or the pet sitter cancels

Sorry, I didn't explain part of my point very well. I see this model of billing only working for a dog walking, dog running or daycare service. And in this model there would be no refunds. Example:

* a client would pay $300 for 20 dog walks in a month (one a day)

* if they canceled days they would still be charged

* if the added visits they would be charged extra

* maybe special concessions can be made for a client who has a personal emergency, loses their job, etc.

In this format you and your walkers would know what you're getting paid ahead of time. Again I have yet to have the nerve to do this type of billing format but I do see some companies doing it. And in this system the only billing you need to keep track of are extras on top of what they've paid for. Yes I can some owners getting angry about paying for days/walks they cancel but stop and think about it. If a client wants to utilize a spot on your route(s) they should be ready to pay a certain amount to hold that spot anyway. If not how is a walker to pay their bills? Clients who are constantly off the route and yet have a problem paying a higher fee are not great clients to begin with.

Again this is presently a fantasy but I think there's something here and if lots of people in the industry moved to this billing format all at once clients would get used to it, it would become the standard, etc. But having that happen? Ha, that really does seem like a dream as of today...

PS: to view an example of a company that charges a monthly fee click here

Josh, I am 99% recovered!!! It was 2.5 months of recovery ;(

It's hard when people cancel and you lose that money. It sounds like you'd have to give a discount (shown by the link). I have two dog walking clients that cancel on me regularly because of vacation. I make up for it by also doing overnight pet sitting and drop-in pet sitting as well as the walks. If I had strictly a dog walking service it would be hard to have cancellations and then lose all that money.

I had one client that would cancel on me regularly because he would work at home. I put my foot down and he got the message, but he wound up dating someone in his building, that works at home and now she does it; so I can see your point about certain clients you don't want anyway. But what do you do about people who go on vacation? I guess they would not pay for the whole month if they know they are going away?

I really shouldn't comment on this. I'm terrible with asking for increases (I had to work it into my contract), and to ask for up front without a refund would be hard for me. Like I said earlier, it balances out because of the pet sitting I do, but it is hard to have all the cancellations.

Hi Erika,

Glad you are feeling better (:

Don't get me wrong it used to be hard for me to raise prices, charge cancellation fees etc. too. But I have a business mentor who really pushed me to understand that it was just part of doing business. And when you think about it, our clients want us to be a professional business right? Than they need to understand when we operate like a real a business and that includes rate increases, cancellation fees, etc.

re.: giving a discount when you charge a flat fee

I don't think this would involve refunds for when clients cancelled but again I don't feel this model would work well with pet sitting, only daily, long-term services like dog walking, running and daycare.

Adding in a discount to the monthly package deal (factoring in a certain amount of days off or holidays into the price) should be cost effective if you crunch your numbers correctly. I think it might be interesting if we try and simulate what the experience would be on the client and office side of this idea.

So you would factor in the vacation time your clients go on? This is my biggest loss. I don't have any flakey clients, since I put my foot down early on and as illustrated above they eventually find a freebie way to do walks. Actually, my biggest loss is teachers, since they have the whole summer off.

Hi Erika,

I think you would need to factor in some small discount into the price if your charged a monthly package. I guess it doesn't have to be based on vacations but I do think it should be a little less than normal, which would be one of the perks for the owner too. You know how they say clients spend more money with credit cards than other methods (especially when it's credit cards on file and you are charging the card yourself)? I think this billing format would be the same. Because the bill will always be the same the owners would be less likely to pay attention to billing (not sure just guessing with that).

PS: I think the point of this billing method is to get clients to value their spot on your route and for you to get the most value out of each client. You are holding a spot for them and they are paying your salary basically. To do so they need to be on frequently enough to justify you holding their spot.

re.: teachers

The only thing I can think about that is offering your clients a small fee to hold their spots on the route. Most probably wont take you up on it but I bet some would and it would be money you wouldn't have normally made.

This is a great topic, thanks!

With regards to the whole issue of paying for canceled days, I've found that clients are pretty much divided into those who fully understand why you have to do it and have no problem with it, those who understand but don't like it, and those who refuse to understand and are convinced you're trying to rip them off.

For a long while I became tongue twisted trying to explain to clients why we have to charge for late notice cancellations and why frequent cancellations require us to rethink the price structure for that client. Now I've gotten it down pretty well. I start by explaining that once they have a time slot with a walker booked, it's pretty much taken for the whole week and that we have to use that slot to its full potential. Then if they're still unsure, I point out that I'm running a high quality service which caters for clients who want their dog to have the same walker every day and that if they want to make frequent cancellations without paying for them, they're probably better off using a high turnover bulk service like Biscuits and Bath, in which walks are distributed equally between whomever is working that day and they're likely to get a different person each time.

There are those who seem to understand in theory, and even sign an agreement to say they understand the rules, yet in practice they get annoyed when they get charged, frequently ask you to "give them a break" and even become enraged and threatening when you do it. I once had a lawyer who lost it when I told her we'd have to charge her for a cancellation made that morning. I even tried to give her a break by offering to charge her only the walker's part of the fee (since I still have to pay the walker) but it was no deal: she threatened to "ruin me," showered me with abuse and even made threats to "report me to the IRS" since she "just knew" that "all dog walkers are tax cheats" etc. Some clients are just plain nuts, especially in Manhattan, and there's not a lot you can do about it except minimize the damage as much as possible and move on.

I have a sliding scale of rates depending on how many ongoing walks per week they set up. Some clients try it on by setting up 5 walks at the cheapest rate and then canceling the same day every week. You have to nip this behavior in the bud as soon as the pattern emerges. Amazing how many of them plead and wriggle and claim that you're penalizing them for their "crazy schedule" etc.

I don't think any of these types would be suitable for monthly packages. I've been thinking about it recently and maybe I'll offer it to spotless clients after they pass an introductory probation period. I've just had too much experience with clients claiming to understand a policy and then flying off the handle when that policy is eventually applied to them.

I like the idea of marketing it as a "membership fee," although you'd have to offer some sweeteners of course. I thought about offering them one free evening or weekend walk per week, with the idea that it's no big deal for me to do the occasional off-peak walk for nothing, and most of them probably wouldn't use it (or maybe I'm just asking for trouble!)

Hi Willy, some great points there and I hear you on cancellations. Clients need to think about how our walkers could have added another dog that day, or stayed home with their own dog an extra hour instead of now sitting around aimlessly. But most importantly when it comes to cancellations or a sliding scale etc is that our employees need to make enough per each spot on the route. If we're going to take on the liability of walking a clients' dog and providing them everything we do then their spot on the route needs to be maximized.

re.: membership fee

I feel that if a large block of the biggest pet services in a given area all shifted to a membership at the same time it might be possible and for better and worse a way to create a distinction with lesser walkers and non companies

Hi there,
I am new to the forum. I was so happy to find this website and be able to bounce ideas off each other.

I have been struggling with the billing issue for awhile. I have been in business for 11 years- all dogwalking services. My clients are all monthly clients with set days each week. I have always used a bi-weekly billing cycle. Every two weeks, my clients pre-pay for the next 2 weeks. I send out a reminder email on the Sunday night before and tell everyone to leave payment for the upcoming 2 weeks. It works well because I don't have to invoice or bill- the clients know their rate and just leave checks. Since the amounts are generally the same, it is pretty simple. Once they have pre-paid, I do not offer refunds unless it's a medical emergency. If they have to switch around days, since they have already paid, I usually find a way to do so.

The bad- I am sick of having to chase down clients every two weeks for checks. I would rather get paid once a month and just know what I am bringing in that month. I'm sure that you all agree, it's so frustrating to deal with the constant fluctuation in income. After 11 years, I just want to make my income as consistent as possible.

There are several companies in San Francisco that work on a flat rate system. I like the idea of flat rate because no matter if there is a holiday or the client is on vacation- you know you will be paid. My friend compares it to a gym membership- Use it or lose it. If you want a guaranteed spot in the walker's schedule, you pay for it. They have different monthly membership fees for 2-day a week, 3-day a week etc. This is also the same thing for most childcare services. You pay for the spot- whether you use it or not.

I agree with the earlier poster- that this could get complicated if clients wanted "credits" for missed walks. Also, I don't want to offer much of a discount on the monthly rate. I only have so many spots that I can handle a day- I want to ensure that each available spot earns it's value. I don't want to make less money than I already make, just to offer a monthly membership fee.

Here is what I think- IDEAL PLAN
Ideally, I would like to require all customers to pre-pay by the 30th of every month for the following month.  I would like to make people commit to their days, a month out. That way, if there is Spring Break or a family vacation, I will have a real heads up of the missed income and have enough notice to try and make up for that lost income. Also, I could allow up to 2 changes to days each month or something? I would also like to say that in order to hold their spots, that all clients are allowed only 2 missed days per billing cycle.

I am about to raise my rates for the first time in 4 years. I plan to introduce the new billing system along with the rate increase.

Any ideas about my "ideal" plan? Most clients hire you because they need you. If they sign up for Tues/Thursday, they need help on Tues/Thurs-so I don't think the month pre-pay will be a problem. I just worry about clients getting upset when they have to cancel and don't get a refund.

Thanks!
 

Hi @ vicki1217 welcome to the forum!

Sounds like you have a really nice system going but I think we all hear you on:

        "I am sick of having to chase down clients every two weeks for checks"

One idea I'd throw your way if you don't want to go to credit cards on file, is you could have your clients set up an automatic bank transfer to your account and have them set it up to repeat continuously too so on both sides no tending is needed.

re.: If you want a guaranteed spot in the walker's schedule, you pay for it.

I think that is a great way to look at it. The client's need to understand how our routes work. If you run a daily dog walking company than each client is being guaranteed a spot on the route and when they're off that spot is often not filled. The only way the walkers/sitters can make enough money is with consistency on the routes. Clients will respond better to a fear of the walkers not making enough money than a fear of the pet service owner not making enough money of course.

I like your idea for payments and in regards to having to chase down some clients for payment you could add a late fee (if you don't have one already) to at least get paid for not being paid on time.

The only thing I would consider if I were you is rolling out both your rate increase and your new payment policy at the same time. That's a lot for a client to have change at once. At the least I'd try and roll out those announcements with some benefits to the clients too. I'm sure you'll be fine in the end but it is something I'd think about.

Best, Josh

An alternative to the automatic bank transfer is to get your clients to pay using their bank's online bill payment system. A lot of my clients use this method and it really suits them. You just give them your address, and they set up a bill payment account in their online banking. The bank then mails me a check, which I get within 3-5 days. 

@adogwalker Oh yes sir, love the bank transfer idea, I think it could be set up where even could wire directly into your account no, with no check being sent?

And I've felt there needs to be more communication between those who work in the pet industry, especially with those in the area you work. If you could get your most similar competitors in the market to agree to the same policy when it comes to cancellations etc. than clients would start to say those beautiful words like, "oh yeah everyone I call says that," and than we'd have a stronger position to protect spots on the routes....

I'm not sure if the bank bill payment system allows direct transfer, I may have to look into that. It may vary from bank to bank. 

@adogwalker Great idea on reminding client's about "appointment based business'." That and I also think it's important to get the point across to clients that their spot on a route is ALWAYS reserved for them, on or not and if there are too many gaps on the routes the WALKER not us the owner, THE WALKER can't pay their rent. I don't think most clients have a full view in their minds of how a pet professional's route actually work and how the balancing act it actually takes to make enough money.

I think one of the hardest things is getting the point across that you have a policy from which you do not deviate. Everyone wants you to make an exception for them, for instance they say their dog is sick and have to take them to the vet. But if you make an exception for one person, you have to make an exception for everyone. Pretty soon they all get wind of the idea that they can always avoid the cancellation fee by saying their dog is sick. Just yesterday I lost a client who freaked out on me because I billed her for a day that she said her dog was sick. Her point was that her dog is sick a lot, and that she shouldn't have to pay for all of those missed days. My point was that if she has a dog who's sick a lot, that's detrimental to us because we have a lot of wasted time spots, and that if she wants us to reserve a slot 5 days a week for her, she's going to have to accept that it's just part of her weekly dog-related expense. In the end, I advised her to use another service, because she did not and would not understand the concept of a company policy and why we have to stick to it. I sympathize with people who have to cancel days because of circumstances beyond their control, but at the end of the day if you allow exceptions, people abuse it. 

@adogwalker re.: "I sympathize with people who have to cancel days because of
circumstances beyond their control, but at the end of the day if you
allow exceptions, people abuse it."

Well said! I'm finding the time not surprisingly we have our client's attention the most is in the beginning and maybe we should all amp up our explanation of policies and why they are important. I think it's important we keep things brief in our descriptions though and only harp on the very most important areas of service, so their eyes don't glade over and/or we don't come off too difficult to deal with.

I can see why you wouldn't give refunds for cancellations because you have other people working for you, but as I am the only employee I don't think it would fly here.  Tell me how to implement such a policy without losing the clients that I already have and explain it to the new ones?

"
I'm finding the time not surprisingly we have our client's attention the most is in the beginning and maybe we should all amp up our explanation of policies and why they are important."

"I can see why you wouldn't give refunds for cancellations because you have other people working for you, but as I am the only employee I don't think it would fly here.  Tell me how to implement such a policy without losing the clients that I already have and explain it to the new ones?"

Hi @adogwalker great posts as always.

re.: Recently,
I've started to wonder whether the internet culture has spoiled people
into thinking that they can get what they want, when they want, in
whatever combination, at the click of a button.

Have to agree but you know who else sets up a false sense of what's expected? A lot of dog walkers and pet sitters out there who do anything their customers ask for and have no policies ):

re.: Without
a spare, I'd have to travel all the way to Queens and back to get the
key, walk the guy's dog myself, then do the same round trip to Queens
again to return the key to the walker before Monday.

Yes that's crazy, it's like okay, if you want to add $40-$50 for short notice coverage we'll do it. And yes we're a business but that doesn't mean we specialize in every request you have. Some things we cover just to try and keep you happy.

I can understand the concept of your time being wasted because of a cancellation and the fact that you could have booked someone else.  Maybe I'm lucky (or my business is still small!) that I don't seem to get too many people cancelling on me last minute. Possibly it is because I do more vacation pet sits than daily dog walking.  When my dailies do cancel, they almost always give plenty of advance notice and don't seem to cancel often. In fact when I think about it, I don't remember anyone who didn't give at least 24 hrs. notice (but remember, my business is still very small and only 4 yrs. old!).

The subject of duplicate keys has not yet come up for me, being that I am the only employee, but it is something I have been considering.  What would happen if I were not available and had to send someone else (I do have a friend who helps out on a limited basis) in an emergency?  I would definately need an extra key for that.  I think I'll start asking for two sets of keys in future.

Regarding the client who was reluctant to give the extra key, I may do the job if I was available, but believe me I would charge plenty extra for the aggravation.

Have to agree but you know who else sets up a false sense of what's expected? A lot of dog walkers and pet sitters out there who do anything their customers ask for and have no policies ): 

I'm probably too soft, I seem to try to accomodate my clients and not hold a hard line with them regarding my flexibility.  I have one lady who tries to take advantage but she got a large price increase so at least my time is well paid for there.

Hi @adowalker

re: I
made a decision that even if the guy offered me $100 and I had the
time, I still wouldn't do it because once you go out of your way once
for these people, they start to think that you can do it for them every
time.

I hear you, makes sense but it's a slippery slope for a lot of the walkers and sitters out there who are scared to give up any business. We should start a separate thread about this very subject, making special deals, when it's right, how far and how much, and how often to do it.

Hi @aahpets

re.: I'm probably too soft, I seem to try to accomodate my clients and not hold a hard line with them regarding my flexibility.

I think we've all been there, especially when we're early in our pet service. I think you'll continually find comfort levels with what you want to bend on and what you don't.

Great thread!
I have to admit: I have late cancellation fee policy but I rarely charge it. If the owner gives me 24 or 5 hour notice, I still cant fill the spot as each handler deals with same dogs regularly. Thats why I couldnt justify it for myself. Now when you charge cancellation fee do you give part of that $ to the handler? In that case it sounds totally fair, I can explain to the owners that I charge it because I still pay the handler and they have to pay their rent etc...

Hi @smilekira thanks and yep I give the lion share of cancellation fee to the worker to lessen the blow but I hear you on being delicate on cancellation fees. I guess I apply them on repeat offenders and if the worker is already working that day and or could have been doing something else if they had not committed to the job.