Customers that don't pay

[scott's turf]

I have been in the business for about 10 years now. In the past I had only done residential work, but this year I was a sub contractor mowing in a condo developement. I got paid weekly the from the guy throughout the summer, then weeks went by before I got paid again but I always got paid untill now. I am owed a little over $2000 now and everytime I call the guy he is really nice and gives me the "check is in the mail" routine, but it never is. The last thing I want to do is go to small claims court but then again I need this check. Do any of you have a tactic or letter that you send out to employees that don't pay that threaten them with a law suit? Does it work?

Thanks for your help.

[MATTHEW]

You need a letter written in a FORM style, not a personalized letter stating that outstanding balances beyond 60 days will be sent to a collection agency or small claims court. This is business. Maybe they are behind on their bills and cannot afford to send it to you, but when they are allowed to do that, YOU find yourself in the same situation with your bills.

[Island Lawn]

certified mail sometimes gets attention

[lbmd1]

Hey Scott,
I find the best approach is dropping by un-announced for a face to face. In about 7 years of being in business now, I 've only had about 8 deadbeats. After the initial rounds of letters\phone calls, I try to stop by their home (if residential) on a saturday night around 8:00 to collect in person. I am batting 1000 when it comes to this method. It's hard to say no or run away from your lawn guy when he knows where you live. Go see the guy at his place of business and don't leave without some form of payment. Embarrassment of unpaid debt is something that most wil try to avoid at all costs. Whereabouts are you in NH? I'm over in Rye by the coast.


Mike

[scott's turf]

Thanks guys. I have showed up at customer's houses before and I agree that this works great, the problem is that this guy lives about 40mins away so I would hate to show up and no one be there. I called again last night and I was assure the check would be here by tomorrow. So we will see. Have any of you used a collection agency in the past? How does it work? And how much does it cost.

Mike, I live in Derry by the way.

[HBFOXJr]

I've used the collection agency before with mixed results and higher costs than small calims court. Don't be afaraid of small claims. It is easy and pretty fool proof and you get you extra costs of collection.

You should have cut him off earlier.

[SprinklerGuy]

Search for my thread....lawsuit and the posts that follow that thread. Prevention is the best...........suing sucks.

[scott's turf]

HBFOX. I would have cut him off earlier but I was his sub for a big condo deal and that was only 4 mowings, a months work. He had paid me at the end of the last month so I didn't think that there was a problem.

[wolfpacklawn]

For residentials I would put a lein on the property. I always get right on anyone paying late and always stress the importance of prompt payment when I initially meet with a new customer. I stress to them that my payment is due upon receipt and that I expect to see payment within 10 days of my sending out their statement. I have had real good success with this and have only had to write off $125 as bad debt in the last 2 years.

As for commercial accounts or sub-contractors I don't know how to best deal with them but I would talk with my lawyer and get some legal advise. I think that you can recoup your legal fees with a judgement. I will no longer do these accounts for a variety of reasons but one of the main ones is that I found that my big commercial accounts were always late to pay and a real pain in the neck to deal with. This was particularly hard on me when these commercial accounts represented such a large part of my gross receipts. Like I said, I have refocused my business plan and no longer will do any large commerial accounts.

[Stonehenge]

The more I get to know people who were born and raised in WI, the more I hear of 'Farm Justice' when it comes to bill paying.

We just finished a project for a guy who has a real knob for a neighbor, and was telling me about how the guy had hired an excavation company build the road they lived on (this guy developed the land), but wouldn't pay.

Finally, the excavator company got 2 combines, went out into this guy's acreage and harvested ALL HIS CORN. Called him up and told him - "You want your corn? Gimme my money!"


I guess the bill got paid right away...

[kutnkru]

Originally posted by Stonehenge
... went out into this guy's acreage and harvested ALL HIS CORN. ...I guess the key is to find out what that spot is that hurts the most and then HIT IT!!!

Kris

[ant]

lets talk more about the "lean on property" abit.
most of my clients have no writen contract .can this still be done?whats involved?
ant

[wolfpacklawn]

Ant,
Check your local/state laws as lein laws are different by state. Here in Nevada it is a fairly easy process that only costs about $45 if you do it yourself. I haven't had to do it yet but I would if anyone was over 45 days late. Or even earlier if they lied to me about when they were going to pay or they were dodging me. I think that you can do it without a written contract or even if they don't own the property you worked on(see below). You need to see an attorney or a collection agency. Maybe hire them once and figure out how they do it and then do it yourself. It can't be that hard. Most attorney's I know are not any smarter than I am they just know where to go to get the informtion:D

I think you can put a lein on the property of a renter that you may be doing work for. Actually you would put a lein on the landlord as he is responsible for his tenats and the work you do for his tenats. He then in return would probably pay the lein out of the deposit he collected from his tenants. Anyhow, see an attorney and get your money one way or the other.

[bobbygedd]

one time i called a guy at 2:30 am, and said id be right over to get paid. i was also very rude. he said that if i didnt come by right now, he would put it in the mail in the am, with an additional $25 for my waiting, i said ok, got it 2 days later. ive been boned out of around $400 total in all my years in business. personally, i get better results with rude, irate behavior. maybe its not "proffesional", but it works for me

[Ric]

Scott

Have you tried telling the guy that you would like to contact the people he has the contract with? If I am subing work I don't believe it is right to cut the main contractors Throat. But if he is not paying and not treating you right then go for it. You may end up with the whole thing. LOL

[landscaper3]

All work no matter how small or how big goes on a work contract to be signed by person or company rep before any work is to be started, second if its a construction job we get 100% of retail cost of all items to be bought the time of contract sighning, 3rd we then get 50% of labor the day before we start and remainder of 50% after job is completed that way if they stop paying any time through contract they loose money we dont. We had to take 3 non payers to court all on the same day! They paid 80% of all money owed thats why contracts are important. If you take him to court you must send at least 2 registered letters to him with your late fees included then wait 45 days and small claim court it. You may get most of your money and check your state laws but up here if the person does not pay within the limits we can attach a claim on there company, So if they go to get a personal loan, auto or business loan our name will be attached as a lein on there company. Also try a collection agency

[cos]

Sent this letter out today.