LATE Paying Customers!

[GrassRocks]

What do you guys do about late paying lawn maint. customers? I'm talkin like 6-8 weeks, some aren't necessarily tough to get ahold of but are constantly giving me the "i'll be paid next week" line. Some are even real nice about it, but it's getting old fast ..Do you stop services? What do you do?

[topsites]

Once the customer and I have reached an agreement, all of that is in the contract,
now I don't get into any type of work without that unless it's just some trivial thing.

[GrassRocks]

So your saying you've never had someone who was late paying because of a contract? I don't believe it. I'm asking what you do when that happens, which according to my experience is inevitable.

[lawnpro724]

I bill monthly at the end of the month for the previous month and when a customers bill is past due over 15 day's from billing services are suspended until payment is made.

[MikeRi24]

no, what he is saying is that you need to decide what you want to do before they pay late, and spell all of that out in the contract: late fees, discontinuation of services, sending the bill into collections, etc. The customer signs the contract and agrees to the terms.

Personally, at 3 weeks with no payment, they wouldn't be getting service any longer and I would be calling them everyday.

[kaferhaus]

That's why we don't bill residential customers and never have in 30yrs. Payment on the day of service, period. I'm not running a loan company nor do I employ a credit department.

I realize that many of you guys "bill" because somehow or other it has become "customary" in your area. No one else (service provider) will bill a customer unless it's in ADVANCE.

That I might have considered it at one time (advance billing) but then you still have the hassle of keeping up with who has paid for next months service and who hasn't... making phone calls etc. all time consuming and it increases your overhead in that respect.

If I were you guys I'd be trying to wean folks off of this post service billing nonsense.

[Yater]

If I were you guys I'd be trying to wean folks off of this post service billing nonsense.

Yup....there's a reason utility companies run a credit check and require a deposit from those with poor credit. I, also, try to collect on the day of service. I have some very good customers who will go out of town occasionally and they catch up when they return...no big deal.

[DA Quality Lawn & YS]

but are constantly giving me the "i'll be paid next week" line.


This, sir, is not your problem, it is the customer's problem. If they tried to pull this stuff with their utility payments, their service would be shut off.

So, spell out your terms in your agreement, then stick to them. Personally, any payments 10 days overdue and service stops - and I keep calling or knocking on their door. You can also threaten to take to small claims knowing that they will lose, they will probably pay you up.

[mowerdude777]

I let all coustomers know at the start of the season if they are 20 days late I will have to charge a late fee of 5 dollars. So my coustomers pay up pretty darn quickly

[LBLC_LCO]

Payment on the day of service, period. I'm not running a loan company nor do I employ a credit department.


Exactly how I do it too. Payment is due on day of service. Most people will leave a check or cash in an envelope on location, or I leave them an invoice on their door and when they get home, they pay through the website.

Now, I do have one customer who I let pay at the end of the month, a little old lady who likes to sit down and write checks for all of her bills at once. I don't mind doing this and she has never been late. Then I have one other that likes to pay for the whole month in advance, no problems there either.

Paying the same day of service has worked out well for me and I'll continue doing it that way.

[Woody82986]

Everything is spelled out on my website and in everyones' welcome packet. I bill by the 12th each month, for that month, with the payment being due on the last day of the month. I normally send out payment reminders if it gets close to the end of the month and some haven't paid, but only if I remember. If a client is late, I charge a $5.00 late fee and they get another 14 days. If it's late past that, I freeze services and give them 14 more days to pay before I begin collection agency action. I very rarely have someone more than a day late though.

[THC]

Over the last few years with lawns and snow I've noticed that I love fast payers. I've also noticed that Late Payers always pay late. It's always the same people and I always seem to have problems from them. Now I don't consider them valuable customers, If I have to make a special trip to deposit one damn cheque I get pissed. I always end up parting with these customers and not really caring about it.

[LBLC_LCO]

Everything is spelled out on my website and in everyones' welcome packet.

Off subject...If you don't mind me asking,what does your "welcome packet" consist of? Feel free to PM me if you like.

[Cashio13]

Thats how I did it. Payment on the day of the cut, and if they forgot, understandable, they would pay next week. However, i never let the payment build up to more than two cuts because then it gets unreasonable. After two weeks if there was not money, there was no grass cutting.

[Woody82986]

LBLC, In my welcome packet I include a printed out version of my terms of service and payment policy for easy reference (Although it's nothing they can't find on my website), a sample of a normal lawn maintenance invoice with several parts explained out for them so they know what they are looking at, a step by step run through on how to remit payment online, a list of a few helpful numbers like fertilization companies and irrigation companies I recommend... Stuff like that. I try to take all the guesswork out and answer as many questions up front as I possibly can so i don't have to take as much time to explains something or answer random basic questions later.

[LBLC_LCO]

LBLC, In my welcome packet I include a printed out version of my terms of service and payment policy for easy reference (Although it's nothing they can't find on my website), a sample of a normal lawn maintenance invoice with several parts explained out for them so they know what they are looking at, a step by step run through on how to remit payment online, a list of a few helpful numbers like fertilization companies and irrigation companies I recommend... Stuff like that. I try to take all the guesswork out and answer as many questions up front as I possibly can so i don't have to take as much time to explains something or answer random basic questions later.

Ok I gotcha, thanks.

[LouisianaLawnboy]

Off subject...If you don't mind me asking,what does your "welcome packet" consist of? Feel free to PM me if you like.

Me too. Plz send me the info

[LouisianaLawnboy]

Back on topic, I'm starting to charge 10% or 15% of the bill if its late.

[Woody82986]

Me too. Plz send me the info

I just posted the info above...:hammerhead:

[GrassRocks]

Woody, what is your website adress? I'd like to take a look at your stuff.

[topsites]

no, what he is saying is that you need to decide what you want to do before they pay late, and spell all of that out in the contract: late fees, discontinuation of services, sending the bill into collections, etc. The customer signs the contract and agrees to the terms.

Personally, at 3 weeks with no payment, they wouldn't be getting service any longer and I would be calling them everyday.

Right, this way the customer understands, long before the work begins, that there exist consequences for not paying.

[BCFLawnLandscape]

The reason for billing monthly is to be convenient for the customer. No one wants to write out 4 checks a month for lawn service, nor do they want to get online 4 times to send you a payment. It is all about convenience. Whatever is easiest for the customer is what they want to do. If your business can afford to bill monthly, then do it. If our customers are 30 days late they get a $30 late fee plus 1.5%. If they are 60 days late, their service is suspended until payment is made. Sure you get a bad apple now and again, but most customers will not have a problem sending you their money. We service 120 weekly accounts and we get 2 or 3 every year that don't pay. It happens, bad debt is part of the business!!