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View Full Version : net 15 / net 30 and does anyone charge late fees


kandalawncaremgr
01-24-2013, 05:08 PM
I'm curious on monthly billing contracts do you guys do net 15/30 also does anyone charge any late fees if payment isn't made. Last year I had three people that would wait 2 months to pay me. Its frustrating waiting around for money. So I was wondering if I applied a late fee maybe people would pay a little more attention. Any suggestions besides drop the people.

kandalawncaremgr
01-24-2013, 05:11 PM
I try to get everyone due on completion but as we all know work and different schedules and such.

Landrus2
01-24-2013, 05:14 PM
Forget the late fee be happy you get it late:waving:

djlunchbox
01-24-2013, 05:17 PM
it is in our contracts, however we have tried to not charge the fee and give people just a little extra time to pay. 85% of people ended up paying, but i have a few deadbeats. We started with a simple "hey, um, you owe us money" style letter, than 3 formal collection letters with late fees added each month, now I will be suing these people.

I would do net 15, with a 10% or more of the overdue balance added each month until paid in full. Service suspended after 30 days late. That will be the first change I make in the 2013 season contracts.

DO NOT let people run up a balance. I learned the hard way.

cpllawncare
01-25-2013, 02:10 AM
At 30 days after invoice they automatically go to collections after that it's out of my hands until the money is paid. All collection fees are tacked onto the balance same for legal fees if it goes that far.

CLS_Birmingham
01-25-2013, 03:10 AM
At 30 days after invoice they automatically go to collections after that it's out of my hands until the money is paid. All collection fees are tacked onto the balance same for legal fees if it goes that far.

Who do you use for collections?? I have several clients that are headed that direction.

As for the net 15/30, we use net 15 thought clients do have late fees built into their contracts. I generally don't ever charge late fees, but if I feel its warranted then I will. We also use the 3 formal letter method for collections. Most people will atleast call you after 1 or 2 letters and make arrangements. Its almost always easier to work with a client than to lose a client.

cpllawncare
01-25-2013, 10:22 AM
Who do you use for collections?? I have several clients that are headed that direction.

As for the net 15/30, we use net 15 thought clients do have late fees built into their contracts. I generally don't ever charge late fees, but if I feel its warranted then I will. We also use the 3 formal letter method for collections. Most people will atleast call you after 1 or 2 letters and make arrangements. Its almost always easier to work with a client than to lose a client.

I've found that it's easier for me to not be the bad guy, I pissed off a late paying customer and ended up losing them, I just don't have patience for people that don't pay their bills, so I fired myself from the collections dept LOL! PM me and I will let you know who I use, it's a very good professional system that works, I've already settled two out of three no pays I had last year using them, the third one will probably end up in court.

skorum03
01-25-2013, 10:33 AM
Just out of curiosity, whats the most you've had someone not pay you?

YardBros Outdoors
www.yardbros.com

kandalawncaremgr
01-25-2013, 10:55 AM
Last year I had lost 500. Dosent seem like alot but when its your first year it hits ya. Now I have double my customers this year. It wasn't my regular it was the I need you a few times while my mower is broke. Then after three cuts I see a new company there so I stop and ask them and they said they called cause there mowers broke. Same song and dance.

cpllawncare
01-25-2013, 10:55 AM
Just out of curiosity, whats the most you've had someone not pay you?

YardBros Outdoors
www.yardbros.com

$1700 cleanout

clydebusa
01-25-2013, 11:01 AM
Net 30, not very successful in getting a late fee paid. It does post the late fee when I resend the invoice, but most don't pay it. I just drop the bad paying ones for the next season.

skorum03
01-25-2013, 11:03 AM
Maybe its because we are in the service industry, but I will never understand how someone can just flat out not pay someone for something that they did at their house.

YardBros Outdoors
www.yardbros.com

cpllawncare
01-25-2013, 11:12 AM
Net 30, not very successful in getting a late fee paid. It does post the late fee when I resend the invoice, but most don't pay it. I just drop the bad paying ones for the next season.

I hate losing customers, I spend money to get them, I dang sure want to keep them if at all possible.

cpllawncare
01-25-2013, 11:15 AM
Maybe its because we are in the service industry, but I will never understand how someone can just flat out not pay someone for something that they did at their house.

YardBros Outdoors
www.yardbros.com

I don't understand it either, like I said I don't have patience for it, I lose my cool over non payers, I will work with people if they get in a bind but to just not pay is not an option with me!

skorum03
01-25-2013, 11:43 AM
Yeah I totally agree, if you can't afford to have something done, don't do it. I saw it a couple times last year with a landscape company I worked with. We put in some big walls, and a sweet patio and re did all the gardens around the house and they tried to nickel and dime my boss to death. The funny part was that the wife would always send an email to my boss, and then say she would be home to "discuss her concerns" but the husband was the one who always came out to talk haha. Basically we determined that they had probably never spent much money before and nearly drained their savings to get a new patio. Moral of the story, if you have to do that, DON'T

YardBros Outdoors
www.yardbros.com

kandalawncaremgr
01-25-2013, 01:42 PM
Thanks everyone for there input and experiences. I did some thinking and after reading the posts I decided net 15 with 10% late fee after due date. I hate the fact of charging a late fee but I could always waive it. I'm all about helping people if there in a bind but I hate avoidance. I explain to everyone if there's ever a problem just call. So we shall see what happens. Thanks again everyone.

Chencho
01-25-2013, 02:42 PM
Net 15 for payment terms and I also call them to remind them on the 16th day that I haven't received their check. Persistence pays off. When they know your on top of it they pay you. I have a huge success rate with calling. I have my girlfriend call so I don't say something I shouldn't

I haven't done late fees yet. I am also a new business owner and haven't got to this point yet.

I've had a few issue but I just tell them "listen you little b*tch when you get a haircut do you pay for it next month? Pay me right now or one of my mexican goons will smash your windows and throw round up bombs on your lawn c***sucker" lmao I am kidding but I wan't to.

kandalawncaremgr
01-25-2013, 05:32 PM
Lol. That was funny