Late Fees

[grasshopperslawn]

Do you guys charge late fees? And if so how much do you charge and when do they accrue. I just went from $10.00 to 15.00 in late fess and I charge them when the bill becomes 15 days past due and then every 30 days after.

[Albery's Lawn & Tractor]

This past season I was giving customers 30 days to pay before charging a $25 late fee per month. I was dumb for that, this year its down to 15 days.

[Roger]

This past season I was giving customers 30 days to pay before charging a $25 late fee per month. I was dumb for that, this year its down to 15 days.

Did many pay the $25?

[grasshopperslawn]

This past season I was giving customers 30 days to pay before charging a $25 late fee per month. I was dumb for that, this year its down to 15 days.
when do you suspend accounts

[outrunjason]

Good Post. I read somewhere that we couldn't legally charge late fees. However I did this past year (2007). Did it make a difference? Well I never really charged anyone the late fee. It was on every invoice. It stated at the bottom that any past due invoice would incur a $5 penalty per past due invoice.

I think I would say that more people paid closer to the time they were suppose to rather then letting it go 30 days or more. But also there were some that it had no affect on at all. At the end of the year those customers that it had no affect on I sent them a letter and stated that they had to pay by the end of the year or they would incur the late charge per invoice. I added it in January and they paid the $5 bucks per invoice.

I have the same question as another. When do you suspend service. I am a one man operation when it comes to billing. Sometimes I don't even know who is past due. I have found in the past that suspending service sometimes would come back to bite me. Example: They would owe for 2 months I would suspend service they would have no service for one month and then they would pay. I would go out to mow and there lawn was way overgrown. That is where I should have stated that we would charge a fee if they get suspended but then again I don't want to loose the customer.

On the flip side. I have had customers that we didn't suspend because we hoped they would pay sooner or later after sending invoices and they tell us they are going to pay. Next thing you know it's the end of the mowing season, and they owe about $400 bucks.

So, this year I will suspend people and I think I will incur a fee for them to come back. I don't know what you call it but something like if your electric got cut off and then they charge you a fee to come out and reconnect it.

[gringo gardener]

fore me its 1.5% per month 18% annually ... i bill by the 5th and its due by the 15th ...
any payments not received by the 20th and im calling to find out if the payments are in transit ... no check number -- no service til the accounts current.

i understand that we are a commodity type business ... however this is a business and not a hobby ... my vendors expect their $$$ on the 1st and they dont care about late/outstanding receivables

[outrunjason]

fore me its 1.5% per month 18% annually ... i bill by the 5th and its due by the 15th ...
any payments not received by the 20th and im calling to find out if the payments are in transit ... no check number -- no service til the accounts current.

i understand that we are a commodity type business ... however this is a business and not a hobby ... my vendors expect their $$$ on the 1st and they dont care about late/outstanding receivables

Wow you call if they are 5 days late. :) I just don't have time to do that. If I had a secretary or something I might do that but other wise when I come home at the end of the day I am tired.

When you do call are they surprised or do they say they are paying it or what?

[gringo gardener]

The service agreements they sign each Dec stipulates that any account is delinquent if payment or arrangements have not been received in our office by the 15th ...

If I wait 30 days to post an invoice and then they have 30 days to pay -- now its 60 days (8 service visits) before I can call them late (if theres no payment) and then its probably another 2 wks (10 service visits) b4 payments r received ...

Im not a bank allowing them credit .. Im a service provider that expects to get paid for the services I provide in a timely fashion ... just as they expect services rendered on a regular basis ...

I merely call them as a "courtesy" that payments have not been received and ask them if theres a problem with services ... usually its simply the fact our lawn invoices get pushed to the back of their list ... rarely do ppl get upset (unless they're avoiding us) but understand from our intial consultation that services rendered results in monies owed and I call when its late

[outrunjason]

I believe the way you do. If we arrive in a timely fashion then we expect payment in a timely fashion. This year I have started accepting credit cards just to make it that much easier for my customer to pay. No one has an excuse not to pay now.

[grasshopperslawn]

I believe the way you do. If we arrive in a timely fashion then we expect payment in a timely fashion. This year I have started accepting credit cards just to make it that much easier for my customer to pay. No one has an excuse not to pay now.
do alot of your customers pay with credit cards I have been thinking about accepting credit cards my self but I just don't want to pay the monthly fee if I do not have enough customers use this option

[grasshopperslawn]

TERMS: A late fee of $15.00 will apply to all accounts 15 days or more past due and then every 30 days until the balance is paid in full.
Any Account 25 days or more past due will be suspended until the balance is paid in full.
This gets put on all payment stubs

[Roger]

I have had some problems, but have resisted the suspension of service. In the end, I get the money. My greatest concern about suspension is the loss of revenue, and people will use it as a way of relief for every week service. Nearly all my customers are weekly, and if they know they don't pay, and I don't show, then they will wait an extra couple of weeks, pay and call for service. Now, I'm confronted with unreasonable growth to handle, and they surely aren't going to want to pay extra for my extra work.

Further, I do my marketing by finishing every property on time, in the best way I can. Over the seasons, I have been able to consolidate customers, with one day in one area that requires one unload/load for the day. Other days of the week have half day work among a few properties. If I start getting suspensions, now I have a checkerboard pattern of results, causing adjacent customers to question my integrity to do the work. Sure, you can tell the questioner, "... they didn't pay their bill," but that doesn't get very far in the PR department, and everybody knows there are "two sides to the matter," whether there are two sides or not.

To sum up, I fear loosing revenue, and have checkerboarded neighborhoods, if customers realize they can get suspended service, and skip a few cuts every season. And, at really no cost to them. Any added charges will merely be dismissed, and there will be no way to make up the lost revenue streams.

I think I could add only a part of the customer base on credit card payments, bear the cost of the fees, and still be ahead, when I know that I can rely upon a weekly cut/payment for the entire season.

[outrunjason]

do alot of your customers pay with credit cards I have been thinking about accepting credit cards my self but I just don't want to pay the monthly fee if I do not have enough customers use this option

I just started doing it this year. I have only had two customers pay by credit card and they were customers that were behind. I still have to send out the letters for them to sign and let them know they can now pay with credit card.

[grasshopperslawn]

I just started doing it this year. I have only had two customers pay by credit card and they were customers that were behind. I still have to send out the letters for them to sign and let them know they can now pay with credit card.

who do you use for processing

[grasshopperslawn]

I just started doing it this year. I have only had two customers pay by credit card and they were customers that were behind. I still have to send out the letters for them to sign and let them know they can now pay with credit card.

what do your letters look like

[outrunjason]

I use whoever quickbooks offers. Forgot the name. The letters I use come from quickbooks also.

[grass-scapes]

I use whoever quickbooks offers. Forgot the name. The letters I use come from quickbooks also.
Merchant Solutions.


Also, you guys need higher late charges. What is the incentive for customers to pay on time if they only have to pay 5 or 10 bucks for a month. My late charge is 35. I have been lenient in the past, but when its not paid by the due date, I am adding in the charge. when I do add it, I tend to get calls. I give them one time only to get out of the late charge. Any more, and it sticks. Just like the credit card companies.