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View Full Version : Do you charge a late pay fee ?


gardiner
04-17-2008, 07:41 AM
This is my first season in and i like to give a big thanks for the knowledge i gain on the forums i have a question is it illegal to charge a late pay fee to clients for mowing in ohio ? I try to find out looking online and i came up with nothing . I tryed to make some kind of contract just incase one is needed havent used any as of yet . Or better yet what your policy on slow / non pay clients. I know there out there and most have been stiffed one time or another . Here a piece what i got on the contract i made up
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Customer shall pay to Contractor at the rate of $ _________per service call for the service herein agreed to be performed. Contractor will bill Customer and Customer shall make payment within 20 days of billing date. Contractor submits bills to Customer on the 15th of each month. Contractor will not bill Customer in advance for services performed. Customer agrees to contact Contractor within 5 days after due date to make arrangements or late fee of 2% per day will apply for all balances not made when due, not to exceed 15 days. Thereafter contract will be terminated. If balance is not paid within 30 days of contract termination, collection fees will be applied to balance. Returned Checks subject to a $25.00 Return Check Fee

bohiaa
04-17-2008, 03:56 PM
No it's NOT....

However your gonna have to change your way of thinking....

your statement is " is it illegal to charge a late pay fee to clients for mowing in ohio "

the correct statement is, is it illegal to charge interest for late payment..

doesn't matter what the payment is for, Just make sure you have something sgined by the customer saying that there gonna pay you "X" to do "Y" then you can start charging interest, late fees, collection fees and such...

If you dont have this and you turn it over to collections you may be sued...

Good luck

gardiner
04-18-2008, 08:05 AM
Customer agrees to contact Contractor within 5 days after due date to make arrangements or interest fee of 2% per day will apply for all balances not made when due, not to exceed 15 days. Thereafter contract will be terminated.

sound better ?

i try to watch for people who cant purchase my product or service . I find it kinda hard to do being my first year . i thinking if i turn one away i could of lost one of the best stops there is
what do you call those people that lives like a low class but is loaded
you know there people out there that just dont like moving and been in same area for over 30 yrs and area been on a down side.
thanks for the reply

ed2hess
04-18-2008, 09:52 PM
All that is way too complicated ....late payers aren't going to be influenced by anything you write on that contract. Many of the billing invoice software have inducement letters that go out when stuff gets beyond 30 days. Our bottom line is we will carry them along telling them they owe but in Dec we turn it over to laywer and one letter gets the money. And surprising we don't lose many that way...

GreenthumbGA
04-18-2008, 09:59 PM
we charge a ten dollar late fee fifteen days after invoice date. 30 days cancels the contract and a cancelation fee is applied(one months contract fee) plus what is owed. 60 days goes to collections.....period.

Turfrific
04-18-2008, 10:29 PM
is dave thomas wendys?

gardiner
04-21-2008, 07:44 AM
we charge a ten dollar late fee fifteen days after invoice date. 30 days cancels the contract and a cancelation fee is applied(one months contract fee) plus what is owed. 60 days goes to collections.....period.

thought i was bad you ain't playen are you :weightlifter:

you only give them 15 days. where if you send out invoice on 15th it owed by the 30th.. i have noticed most of the lawns i do are retired elder folk . on that i was thinking that most don't get paid till around the 1st of the month so i took it to 20 days to give them 5 days into the following month thinking i would revive there payment before the 5th of each month and if still no pay by the 20th day contract will be terminated. i don't know much about collections but the wife worked at a collections office and you know how a woman can be ( no offence if any ladies on here )

John Gamba
04-21-2008, 07:51 AM
A friend that i helped get into this business avoids all of this by getting a credit check before he starts work.it will not solve all the problems you can have but it does help.

gardiner
04-21-2008, 08:31 AM
WOW ... hopefully it gets easier as time goes by .. i been so busy tryen to get things set up.. maken up the service quotes and contracts and calls coming in going and looking at places and hearing someone can do it cheaper . and yesterday one guy told me a company that been around as long as i can remember can come mow his lawn for 10 bucks cheaper when i know there overhead is alot higher then mine. and then tell me he can get mulched delerivered for like 13.50 a yard i have a station not 5 min away from me that that makes the mulch and i payen 15.50 a yard @ contracter price. boy my head been running like a freight train on that i have to say to all that been where i at good job

John Gamba
04-21-2008, 08:33 AM
WOW ... hopefully it gets easier as time goes by .. i been so busy tryen to get things set up.. maken up the service quotes and contracts and calls coming in going and looking at places and hearing someone can do it cheaper . and yesterday one guy told me a company that been around as long as i can remember can come mow his lawn for 10 bucks cheaper when i know there overhead is alot higher then mine. and then tell me he can get mulched delerivered for like 13.50 a yard i have a station not 5 min away from me that that makes the mulch and i payen 15.50 a yard @ contracter price. boy my head been running like a freight train on that i have to say to all that been where i at good job


When people talk like that, Start walking away.

gardiner
04-21-2008, 08:40 AM
yep i walked away. and if he calls back after getting other quote my price just went up 20 bucks

John Gamba
04-21-2008, 08:44 AM
yep i walked away. and if he calls back after getting other quote my price just went up 20 bucks



You might find out that dealing with this type customer is not worth your time no matter how much money is on the table.they will try and get you to lower your price all season.


You all need to have shared files(like doctors do) on loser customers.

ed2hess
04-23-2008, 07:59 PM
A friend that i helped get into this business avoids all of this by getting a credit check before he starts work.it will not solve all the problems you can have but it does help.

I have rental property and do credit checks....everybody and I mean everybody has a long list of people they stiff.....including utilities, previous places they rented from, cars payments, etc etc...it is really bad.

Lawn-Sharks
04-23-2008, 09:00 PM
we charge $10 after 5days past due and service stops untill it is paid in full.

victory1
04-23-2008, 11:32 PM
I have been in business 10 yrs. I charge a late fee as a descretion depending on the client. sometimes things happen out of their control. However I do call them when they are late. Unlike a lot of other companies I bill at the beginning of the month for that month and the bill is due at the end of the month on the 27th. That way when I bill the first few days of the month i know who is late and can let them know thier account is past due, (And in those cases where you get a dead beat client who is not going to pay you are not 60-90 days in before you become wise) I also make every client sign a contract, that outlines what is expected of my company and what is expected of them. I have one of the toughest canclelation clauses around, because of the quality that is given both in the maintenance and the customer service. (not tutting my horn! please don't take that way) I am not a mass customer company. I service 35-50 accounts per crew with an average account of about $400 per residential and $1500 per commercial. When I do charge a late fee it is 15% per month on the amount due. This is charged (when charged) every month the account is past due, Ex.ample 2 months past due would have 15% added to the first months bill then the 2nd months bill would have the past due amount plus the current months amount plus a 15% late fee on the total amount due.

Hope this helps.

John Gamba
04-24-2008, 05:20 AM
I have rental property and do credit checks....everybody and I mean everybody has a long list of people they stiff.....including utilities, previous places they rented from, cars payments, etc etc...it is really bad.



If they stiffed utility's your an easy Target.we need a list like the banks have.

gardiner
04-24-2008, 07:18 AM
any horror stories on you Charging late fee ?

John Gamba
04-24-2008, 07:25 AM
any horror stories on you Charging late fee ?


Its not enough.

victory1
04-24-2008, 07:36 AM
I have not had anybody cancel because of a late fee, but as I said I apply a late fee with discretion. At the time of the contract signing i make it a point to go over both parties resposibilities and obligations, and to point out the late fee and cancelation clause. I also explain that the late fee is there because I have to pay my suppliers, (Ex. Gas, Oil, Chemical Company, Spray Chemicals, ect) and they charge me a late fee when they are paid late due to a client paying late. Then I have them initial the clause.
When I have charged a client a late fee most of them have appologized for being late.:)
Explain it up front and there are no questions later.
Again hope this helps someone

gardiner
04-24-2008, 07:50 AM
Its not enough.

u know like freak out on ya . sayen you raised the price or somthing

John Gamba
04-24-2008, 08:03 AM
u know like freak out on ya . sayen you raised the price or somthing


Banks charge a higher rate on a loan if you have not so good credit. why would you not do the same???

Frontier-Lawn
04-24-2008, 11:02 AM
i bill one month forward that way if i don't get $ by the 2nd i'm not out any money no $ by the 3rd $15 late fee, 2nd time late $20 late, third time get a new lawn guy.

ProStreetCamaro
04-24-2008, 01:52 PM
Charge a late fee here and they will just get one of the other 10,000 lawns crews around the area. It sucks but it is what it is.