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View Full Version : Am I an LCO or a Bank?


haybaler
03-25-2008, 08:45 AM
why is it that customers think they can pay there lawn guy whenever they feel like it? and then they pay the bill in payments without even asking if it's alright. No other company's run like this. I'm not a bank or credit card company. I'm fed up and i'm going to lay down the law. you have 3 options. pay by credit card, pay within 10 days, or pay after 25 days and pay the interest charges. anything other and you get a black mark on your credit score.

Stillwater
03-25-2008, 10:08 AM
why are you telling us and not your customer

Lawn-Sharks
03-25-2008, 10:35 AM
Customer are weird like that..... i havent had that problem yet but my other LCO's friends have. Hope it all works out for ya!

haybaler
03-25-2008, 10:40 AM
why are you telling us and not your customer

i'm just venting, and giving people starting out a heads up.

J&R Landscaping
03-25-2008, 01:44 PM
I run into that problem sometimes. Yes it sucks but my policies were changed for this year. Strict late fee's as outlined in my contract if I don't get my check or a phone call by the 15th.

Runner
03-25-2008, 03:07 PM
There is an old saying that I have used with people for years. I tell them this.
"Sir (or Maam), My bank and I have an agreement that I continue to honor. They don't mow any lawns, and I don't loan any money."

jimmyburg
03-25-2008, 03:10 PM
Get paid when your finished, i do. they leave a check or cash

ICS
03-25-2008, 03:23 PM
DUH....... We are all Banks. I am still chasing money from last year, enough to buy two trucks. But the BIG catch is, even though people string us out FOR some dumb reason our creditors expect their money on time. CRAZY... But we all bow and pay our bills on time and WAIT for others to do the right thing.

This year we are trying new software in hopes of less money "slipping through the cracks" hoping that it works.

IN2MOWN
03-25-2008, 05:37 PM
I run into that problem sometimes. Yes it sucks but my policies were changed for this year. Strict late fee's as outlined in my contract if I don't get my check or a phone call by the 15th.


I did the same thing. I had due dates on my invoices but this year I added something to the bottom of the invoice stating when it was due and what the consequences are if they are late.

I also included all that in my spring letter I sent out last month.

I give my customers 15 days from the date of the invoice to get a check to me. I think that is more then fair.

pderenzo
03-26-2008, 12:53 PM
You'll always find slow paying customers. People generally don't know how to budget their funds past one day to another. You have to make up your mind when your in business. You are either a credit giving agency or not.

My policy has always been pay as you go. Payment do on completion of any job. If the client is out of town then it is in advance for the month.

Customers do have problems that come up some times, you treat each customer individually based on your experience with them. I offer credit to some, but they have been with me for a while and have a good relationship with me. Customers that intentionally fail to provide payment after several attempts to collect the money due with no explanation or contact, before there next scheduled visit is dropped (I'm not in the collection business).

Anything under contract also has credit options with a specific payment outlined in their agreement.

My best advise would be to avoid offering credit as much as possible. As it is the profit margin on lawn care is somewhat questionable at times.

Blessing to you all
Pat
http://www.GRASScutters-US.com

dwlah
03-26-2008, 11:26 PM
This year I have informed my customers they have two options (giving them the choice)
Payment due when job is completed everytime or Invoice at the end of the month due by the 15th Just let me know what method they want
(most have optioned for end of the month)
Ive got some new software hopefully stuff wont fall thru the cracks
Last year(my first full time) I had people paying me on 5 different schedules
I can already tell a difference from last year just a month into the mowing season

Brianslawn
03-26-2008, 11:32 PM
Get paid when your finished, i do. they leave a check or cash

fair enough. we get paid before we even drive to their house, though.

as for original poster... apparently youre customers think youre a bank. so do what a bank does when the customer dont pay. repo their car or house.

AintNoFun
03-26-2008, 11:47 PM
thats because we aren't respected as an industry.. what are you gonna do not cut their grass big deal, they'll find someone cheaper and within an hour.. the second reason is because not many landscapers have the backbone to stand up to customers, most would rather just wait to get paid instead of making waves and possibily losing the customer!

poolboy
03-27-2008, 12:25 AM
I feel for you guys...I really do. When that happen in with us we remove the electrical relay or conduit....until they pay. After that, we use olddebts.com....then it's with my attorney.

Brianslawn
03-27-2008, 03:49 AM
thats because we aren't respected as an industry.. what are you gonna do not cut their grass big deal, they'll find someone cheaper and within an hour.. the second reason is because not many landscapers have the backbone to stand up to customers, most would rather just wait to get paid instead of making waves and possibily losing the customer!

thats because lawnboys dont like like an industry. they act like excited lil puppies that chase their tail and pee on your carpet. then when a high dollar potential new customer pops up they start humping the customers leg.

and if you dont got the backbone to stand up to your customers then go back to asking them if they would like fries with that.

2 clowns mowing
03-27-2008, 07:01 AM
add another option pre-pay!!!

GreenN'Clean
03-27-2008, 09:33 AM
Customers don't always see LCO's as a company they just think of them as a guy cutting grass and they come a dime a dozen

Roger
03-27-2008, 10:05 AM
.... and they come a dime a dozen

For residential mowing customers, how wrong are they in this perception?

tamadrummer
03-27-2008, 10:12 AM
After watching friends of mine that I worked for struggle to get paid and then talking to another friend that told me about how he adds a late fee to clause to his billing and the customer knows right off the bat they will be charged if they are late that is what I do.

From the very first bill I sent out, I have had a $10.00 late fee on my bills that are paid after the 15th of the current month and I have only had to assess them to 1 time so far but they have been paid by the 3 customers that were late.

Most of the people are freaked out when they get their first bill and call to ask about the late fee and after explaining to them that they will not be charged one unless they are late but that my bill is no less important than any other bill they have and I have to be paid. They will basically do everything possible to avoid the dreaded late fee.

DBL
03-27-2008, 10:18 AM
we really dont have a problem with the majority of our customers but some feel the need to put themselves on their own little payment plan...as long as i get my money in a timely manor i dont lose too much sleep over it

GELAWNS
03-27-2008, 10:59 AM
The $10.00 late fee usually works for us. The customers that deduct the late fee when they finally send their money and always run late, will be watched closely. We also suggest payment in advance (even up to a year of services) if it does not appear to be a financial issue. We have some high end clients that travel a lot and think they can wait until they see the crew at their house to settle up. Unfortunately, there a many other lawn care companies in our area that operate with a "pay cash when you see me" policy.

Stillwater
03-27-2008, 11:19 AM
and if you dont got the backbone to stand up to your customers then go back to asking them if they would like fries with that.

:laugh:.....................

DuallyVette
03-28-2008, 01:04 AM
Some people think that we're like the power company of gas company. These companys deliver the power from 1/1 to 2/1, calculate your useage and bill you on the 3rd, and give you till 2/28 before they add a late charge.

My proposals state that we will bill you on the 23rd of the month, and the charges are due on the 1st. I also include a pre addressed (with USPS barcode) to make it easier to send the check. It works pretty good.

Atlantic Lawn
03-29-2008, 09:20 PM
Maybe just save all your bagged clippings for a couple days and bring them back to the none paying guy, pour em on his yard and say ok here is all your grass back !

DuallyVette
03-29-2008, 11:10 PM
Maybe just save all your bagged clippings for a couple days and bring them back to the none paying guy, pour em on his yard and say ok here is all your grass back !


That sounds like extra work. I did once offer to dump a dump-truck load of leaves in someone's driveway if they didn't write me a check.

Chilehead
03-29-2008, 11:44 PM
There's something called a CONTRACT where you set the terms. If your customers won't sign one, then you need to find some who will.