What should I say??

[RB]

I had a question regarding handling customers who pay late. They are the typical young yuppie-type jerks that live in those $350,000 new housing plans. They have always paid late (before contracts) in the past and they are always trying to get me to lower my price and they like to feel they are always in control.

My contracts run from April 1 thru Nov 30 and their first payment was due April 1. I added a note on my contract as well as on my statements (which I hand-delivered on 3/15/02) that said "A $25 service charge will be assessed if payment is not received by 04/05/02." I received their payment on the 6th of April, a day after my stated deadline (it was postmarked on the 5th). I am planning on adding my $25 late charge on their next statement and I know when they read it they will call. As I mentioned if they weren't jerks I would have no problem give them a break -- this time.

Since they live next to each other I have to give them all the same speech.

How would you word your response when they call and say they sent their bill in time to make it to me on time?

Ron

PS
I don't really need their money.

[Richard Martin]

I wouldn't charge them a late fee simply based on the wording of your contract. It is flawed.

Change your contract next year to read "post marked by 4/05/03" and that will reduce the question as to when the payment was sent. There certainly are instances where the mail does get delayed. After 9/11 I had a piece of mail that was delayed by 3 weeks. It was post marked on the correct day though. My leasing company let it slide with no late fees charged.

[leeslawncare]

I would talk to them an remind them that if you can't get paid on time it hurts your biz.Ask them if they would like it if they didn't get paid one time ,I bet they live way above there means an it wouldn't take much to get them behind if there check wasn't there on time! OR Send them the late fee an see what they say!I have had this happen to me .I sent the late fee an it didn't take long for them to see I wasn't playing (i also would send them a copy of the contract an hi lite the late fee

[f350]

postmarked the 5th... not their problem.....
welcome to the u.s. mail. i would never put a late fee on something that they or you have no control over

[jkkalbers]

We get people paying months late, but we never charge a late fee, because the second we do there will be a phone call, and in the end the cutomer will win anyway, unless you want to loose them as a customer. The competition around here is too stiff to do things like that. It's not worth the hassle of dealing with the complaints and then finding a new cutomer to replace them. also you'll build a reputation for yourself as charging fees and word of mouth is the best advertising. you can either collect the $25 now or reap the bennefits of not hasseling people down the road. People will pay eventually and if your not dependent on the money instantly I would let it go. People think Lawn services are exceptions to paying bills on time, because they know there is nothing we can do (such as report it on their credit history) like a utility can do or a credit card company.

[fastrunner]

I figure that if you but a deadline or something on your bill that says.. Pay by the 25th of the month to avoid a $25.00 late fee. And say you mail it around the 1st or something,, then the customer will just wait til the 24th to send out the payment. If you dont put a date at all i think it works better. they will just pay it right then and there.

[f350]

wrong!!!!!! you can put contractors liens on the home!!!

[gslam88]

f350

just wondering who said anything on putting a lien on the home?

I just must have missed who said it.


But that does give me a questions for someone in rough times... someone who is self employeed and is falling behind... can you put a contractors lien on your own home to beat the bank and other creditors from getting to some of your assets... I know it off subject, but something that just though of as I saw a guy at auction yesterday who is big time in debt and can't afford to pay his bills does not pay his people, etc....


just wondering

PEte

[f350]

what i'm saying is that, customers cant get away without paying. as a service provider you cannot write off bad debt unless material cost are involved. but you can lien on a home for unpaid services.. this is where excellent record keeping comes into play. send two collection letters 30-45 days apart..keep copies.

[proline32]

Basicly I have worded in my contract that payments must be received WITHIN 20 days of the billing date, anything after the 20 days is fair game and will be assesed a service charge, If the credit card and power companies can do it so can I..... But you need to let the customer or potential customer know your rules UP FRONT, I provide a letter to every new customer stating my billing and payment policies, the letter also states that I have the right to sue for payment, use collection agencies, reprt to credit reporting agencies and attach a lein to the home to obtain payment. So far, I have had no complaints from customers.

[gslam88]

F350



You missed the tone of my question, I am not saying it can't be done, just that I though that some one else had said it previously in the thread and I just don't see it above.



I thought that someone had said previously that it could not be done and that your were responding specificly to that. That's all.





Pete

[Kent Lawns]

Originally posted by RB
they are always trying to get me to lower my price and they like to feel they are always in control.

PS
I don't really need their money.

Sounds like you have a chip on your shoulder.

I think your customer approach needs an adjustment. Oh, I know the customers you're talking about, but you're taking this way too personally.

I would not access a $25 fee to a client who pays within 30 days.

[eslawns]

Do I understand you? Do you send a bill on April 1? If I understand what you're saying, you're pissy because they paid a bill a day late. Get over it, and be glad they paid it. I know if I do business with anybody who calls me over something like this, they lose my business. If this was the biggest problem I was facing, I think I'd be OK.

[landscaper3]

If im late on my credit cards, heating bill, car payment ect I get late fees. We put on our contracts to be paid by the 15th or a $6.00 late fee may be added. Its up to me to enforce it or not. I dont charge them for a couple days late. But repeated late payers will either pay late fees or we re-right our conracts stating payment DUE upon completion of work. Also if more then 15days we call for a follow up to assure they got our bill and request payment and after 30 days late Stop service until paid. Very few customers have burned us but thats the benifit of contracts its better to have one so you-the customer are all on the same page. Its up to you to enforce your policies but over enforcing will lead to loss of business. You have to communicate with your customers>

[RB]

I'm glad I posted this and got some different prespectives on this. I don't agree with some who said I should just accept a late payment because we have no control over this issue. But after reading all the posts I will not send a late payment, but next year I will change it to read "postmarked" instead of received. GOOD POINT. I appreciate that.

I might have come off with an attitude, but I didn't intend to be that way and I think I'm far from giving anyone attitude. I think it stems from the fact that I have a stuttering problem and those "jerk" customers I described do everything but come out and tell me I'm wasting their time when I try my hardest to try to get a sentence out when I need to explain something to them. I was trying to explain my contract to one woman this winter (the one I wanted to charege a late fee) and she didn't even give me enough respect to sit there for 5 minutes and let me explain my contract. After only a minute or so she stood up, picked up the contract and said she would look it over and email me any qestions she had. I told her she could call me and she said she could "go through" that. No you wonder why I seem to have an attitude with these customers. lol.

Thanx for the help. I will not charge a late fee -- this year.

[Tony Harrell]

This has been a very interesting thread because I can see the points on both sides. At this stage, I wouldn't charge for being a day or so late but I can see where some would. It got me thinking, what would we do if we were the customer and getting a $25 late charge for a day or so? Just curious

[Runner]

As far as them wanting you to come down in price, well, this is just a cheap, low down behavior. Do they go through the checkout at Home Depot and say. "Gee, that seems kind of expensive, can we just pay THIS much?" I don't think so! Do they do this at restaurants?!
When and if someone even HINTS something like that to me, I just simply tell them. "Well, if you could do me a favor. If you could contact the utility company, and pehaps the phone company, and have MY bills lowered, perhaps we can work something out?" :rolleyes:

[65hoss]

Hummm... Negotiate with my G/L people. Wonder if it will work? ;)