Okay, the late payers are getting out of hand!!!

[landscaper22]

I know we are in a recession, the economy is bad, and blah, blah, blah. The business is not pouring in like it once was, so I am hesitant about dropping people. So, I have 3 customers that have recently become a thorn in my side with the late paying crap. They seem to keep getting later and later. One is almost caught up, so he is on decent terms with me right now. Well, another of these late payers has one invoice that is about 30 days past due, and yet another invoice that is past due after tomorrow. I am not servicing for them any longer until I get paid, but that is beside the point. What really irritated me is that I got a Christmas card in the mail from them yesterday. It is like a slap in my face. They go to the trouble to sign a card, stuff it in an envelope, put a stamp on it, mail it to me, but don't bother to send the money they owe me. It's like "Merry Christmas you sucker." :cry: I just knew when I saw the return address that I would find a check inside that card, maybe with a small Christmas bonus for my pain and aggravation. :laugh::laugh::laugh: :confused: Nope, don't think so :(
Sorry, just had to vent.

[PROCUT1]

Switch to billing one month in advance or to automatic credit card payment.

I did that a couple years before i sold the business. It worked great.

The profit margins are so tiny in lawn mowing that you cannot afford to have receivables.

[mulchmaster]

Sucks doesn't it. I have a company that is $1500 behind for last years snow removal services. Oh well, he keeps paying a little each month, a little more than the intrest fees.


Mulch

[landscaper22]

Switch to billing one month in advance or to automatic credit card payment.

I did that a couple years before i sold the business. It worked great.

The profit margins are so tiny in lawn mowing that you cannot afford to have receivables.

I totally agree. I need to change something. I don't like advance pay, looking at it from the customer's perspective. However, I may start making the due date on the 15th of the month in which I am servicing (actually sending the invoice on the first of the month in which I am servicing), rather than waiting to the end of the month to bill, and giving them too long to pay the bill just to find that some still don't want to pay. Then, I am trusting them for half of the month, and they are trusting me the other half. And if there is a problem with payment, I can realize the issue before I have given them 6-7 service visits. That is just too much money to lose.
Actually, I am going to start working on a letter soon. I am going to include something to the effect of... if payment is not received by the due date then services will stop.... The problem is they think that if you skip a week, then that is just less money they will owe. But I think I am going to add that if services stop because of late payment, then the next week you will be charged your normal rate plus 50% extra because of the increased work load and sort of as punishment. Or if they pay the same amount each month, just still charge them for the full month if I stop service for a week because they didn't pay the bill. I feel this will either keep them in line or force them to drop me. Either way I guess the problem is solved. I am not a fan of skipping visits. I still have an extra work load.
I am just a little hesitant about stepping on too many toes right now with the way things are in the economy. I have some customers that almost can't afford me now. So I can see it now....I ditch the bad payers and the next week 4-5 others will drop me because the can't afford it any longer. that's the way it goes for me, you know?

[punt66]

I totally agree. I need to change something. I don't like advance pay, looking at it from the customer's perspective. However, I may start making the due date on the 15th of the month in which I am servicing (actually sending the invoice on the first of the month in which I am servicing), rather than waiting to the end of the month to bill, and giving them too long to pay the bill just to find that some still don't want to pay. Then, I am trusting them for half of the month, and they are trusting me the other half. And if there is a problem with payment, I can realize the issue before I have given them 6-7 service visits. That is just too much money to lose.
Actually, I am going to start working on a letter soon. I am going to include something to the effect of... if payment is not received by the due date then services will stop.... The problem is they think that if you skip a week, then that is just less money they will owe. But I think I am going to add that if services stop because of late payment, then the next week you will be charged your normal rate plus 50% extra because of the increased work load and sort of as punishment. Or if they pay the same amount each month, just still charge them for the full month if I stop service for a week because they didn't pay the bill. I feel this will either keep them in line or force them to drop me. Either way I guess the problem is solved. I am not a fan of skipping visits. I still have an extra work load.
I am just a little hesitant about stepping on too many toes right now with the way things are in the economy. I have some customers that almost can't afford me now. So I can see it now....I ditch the bad payers and the next week 4-5 others will drop me because the can't afford it any longer. that's the way it goes for me, you know?

Do you not keep a large enough balance in the bank to cover your expenses and salary? There not that far overdue and just 2? Sounds like your living on the edge if thats bothering you so much. I have a customer that will go 3 months. But they always pay. Dont take it personelly, your running a business.

[landscaper22]

Do you not keep a large enough balance in the bank to cover your expenses and salary? There not that far overdue and just 2? Sounds like your living on the edge if thats bothering you so much. I have a customer that will go 3 months. But they always pay. Dont take it personelly, your running a business.

Oh, I am not really living on the edge. I have enough to cover my expenses. It is just the principle. Where do you draw the line? I mean it is only a couple that are pushing my buttons at this time. It starts as a few days late. Then it goes to a week. Then before you know it they are continually running more than 30 days late. They just keep testing to see when I will draw the line I guess. But why is it fair to let them get away with it? By keeping the policies so loose we are setting ourselves up for problems. It is also unfair to the ones that break their necks to get the check in the mail as soon as they get the invoice. You let yours get to 3 months? Wow!
It's funny, I can generate invoices on the first of the month, and I can have some checks rolling in by the 4th or 5th from the ones that I e-mail invoices to. I can get checks from most of the others by the 8th-10th. Then a few come in between the 12th through about the 20th. The rest of these people are either trying to test me or think the world revolves around them. I don't like either of those people very much. It's not about me running out of money. It's about being fair to everyone including myself.

[ed2hess]

You might rethink being in business if late payment bother you that much. You can write all those letters with penalty clauses in them and rebill when they are late but it just isn't going to do anything but make them mad and they leave. We work on the principal that we will get the money. And ultimately our lawyer can usually send one letter and they pay up immediatley...at end of year.

[Green Finger]

Do you not keep a large enough balance in the bank to cover your expenses and salary? There not that far overdue and just 2? Sounds like your living on the edge if thats bothering you so much. I have a customer that will go 3 months. But they always pay. Dont take it personelly, your running a business.


People in the work world are living pay check to pay check.

and Businesses are running off their accounts receivables.

When they don't pay on time that can hurt:hammerhead:

But punt66 put it so bluntly.... good point

[landscaper22]

You might rethink being in business if late payment bother you that much. You can write all those letters with penalty clauses in them and rebill when they are late but it just isn't going to do anything but make them mad and they leave. We work on the principal that we will get the money. And ultimately our lawyer can usually send one letter and they pay up immediatley...at end of year.

Yeah, but ask these late payers what they would do if their employers were a couple of days later with their pay check. Then ask what they would think if their employer was over a month later paying them their regular paycheck. Actually, I think that is what I am going to start doing when they are late, after one friendly reminder.
Normally, I would not care if the late SOBs drop me. I do care more now because of the tighter economy. But normally I would kick them to the curb. Not trying to be a butt about it. Just saying, people like that I don't have time for. It's disrespectful.
I wish my attitude about the matter was like that. Yeah, just whatever. Oh yeah, you owe me more than $800 for 5 months of mowing. Just pay me before I retire...oh,unless that is a burden on you. :laugh:

[Josh.S]

I also think that you should not let it bother you that much.

Whether right or wrong, I normally don't even pay attention to who owes me what unless I see some real high number. I have a lady that stopped paying halfway through the summer that still owes me for the last half, she did this last year and she ended up paying, therefor I just don't worry about it. I'm not running my business off of account receivable so I don't break a sweat.

Hell, a commercial job already owe's me $6k for salt and plowing, then they called me and tell me that they can't do net 30 terms, but will be doing net 59.

I didn't argue the point that net 30 terms were signed off on by the district manager. Now that does irritate me a little bit, but I'm not going to lose sleep over it.

[Busa_bill]

I typically don't worry about people that drag me out unless they are a PITA customer. I don't take crap from residentials that won't pay their invoice on time. Let somebody else deal with them.