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View Full Version : How much $ did U lose this year?


Ol'time Lawncare
12-17-2004, 11:25 AM
I read all the time how the customer didn't pay, most operators work with contracts. some don't, it really depends on were you live in the USA! so my question is , How much money do u think you lost this year with dead beats! I my self lost only 45 bucks , thats it. the lil old lady who didnt pay, witch was 20 bucks, and the other was a gutter clean up, i started the job and the home ower wanted to help and it started a fight ,she was 85! i did a BG and drove away! first time 4 everything. so 45 is my magic number . whats yours?

packerbacker
12-17-2004, 11:26 AM
Not a dime

brinlee lawn
12-17-2004, 11:27 AM
I only got stiffed for 30 bucks this year, they guy moved out in the middle of the night, no body seems to know where he is.

grshppr
12-17-2004, 11:31 AM
I had about $900 form two customers that I didn't think I'd see, this was still from June, but since we are slow right now, I have time to get annoying and keep on their cases, and yesterday got both checks. Other than some of the money that is still due from November I don't think Ill be out anything. :cool2:

Mico Landscaping design
12-17-2004, 11:49 AM
Big Zero dollars!

rodfather
12-17-2004, 11:57 AM
More than I care to share...but then, I made more than I care to share as well :D

bobbygedd
12-17-2004, 12:01 PM
not a nickle, and more importantly, i charged top $$$ for my work, and got interest and late fees for collection efforts. THAT'S the way professionals do it. now, if i was as rich as rodfather, i wouldn't give a crap about a few grand.

twins_lawn_care
12-17-2004, 12:01 PM
So far $65 I am writing off as never expecting to see.

But great news from last year's deadbeat who owed us $315. Even better than getting the check, drove by their house this week, to see the lawn piled high with all their possesions! I know it is probably not good to celebrate someone elses bad fortune, but karma is a b----! :blob3:

Sorry, just brought a nice smile to our face to see it. One of those priceless moments! Wouldn't be celebrating if the guy hadn't been such a ... well, you get the point.

Contracts helped out a lot this year, but more so was just lucky to pick up great customers.

Gatewayuser
12-17-2004, 12:01 PM
$0.00 I have great customers!!! payup

Precision
12-17-2004, 12:02 PM
one client is looking like $130. Other than that $20 that a client shorted me by accident but she gave me a $50 holiday tip, so I am calling it even.

Any way no biggie on +/- $75k in billings

trying 2b organic
12-17-2004, 12:03 PM
No contracts with my residential. Lost 30 bucks on a fert app. More like I just let the b**ch win if she cares that much, and decided to finally ditch that crappy neighbourhood for good. related question, how do u tell someone you dont do the bad side of town without sounding like a jackass? :blush:

Ol'time Lawncare
12-17-2004, 12:13 PM
No contracts with my residential. Lost 30 bucks on a fert app. More like I just let the b**ch win if she cares that much, and decided to finally ditch that crappy neighborhood for good. related question, how do u tell someone you dont do the bad side of town without sounding like a jackass? :blush:
I have a mapped at area of the 3 town we cut in.after the call for a free estimate i look on my map and if it doesn't look like a good neighbourhood, we tell them we are to bizzy, usually i tho them a name ,lol

Garden Panzer
12-17-2004, 12:21 PM
$800







:realmad:
:cry:

sildoc
12-17-2004, 12:26 PM
25 smakeroos. Last time I keep a house nice while the people are trying to sell. When they move forget what they owe you.

Norm Al
12-17-2004, 12:35 PM
i dont mow anymore but in my other business i didnt lose anything!

moremowing4me
12-17-2004, 12:55 PM
30$ is all

mtdman
12-17-2004, 01:30 PM
$0, as usual.

:D

bobbygedd
12-17-2004, 01:34 PM
for the guys that lost nothing, that's absolutely amazing. you are the only businesses in the country who did not suffer any loss from theft or deabeats. if you truly lost nothing, then tell me how much time and effort did you spent collecting from deadbeats, and trying to recover losses from theft of services

packerbacker
12-17-2004, 01:36 PM
for the guys that lost nothing, that's absolutely amazing. you are the only businesses in the country who did not suffer any loss from theft or deabeats. if you truly lost nothing, then tell me how much time and effort did you spent collecting from deadbeats, and trying to recover losses from theft of services




Uhhhh, obviously if nothing was lost then why would we spend time chasing deadbeats? We dont have any. Its called "customer satisfaction"

If your good to them then they are good to you. Its a 2 way street

Novel idea huh!?!?

bobbygedd
12-17-2004, 01:45 PM
Uhhhh, obviously if nothing was lost then why we spend time chasing deadbeats? We dont have any. Its called "customer satisfaction"

If your good to them then they are good to you. Its a 2 way street

Novel idea huh!?!?
it's also impossible! every business who extends credit has a certian % of losses, and spends time and money with the collection proccess. in fact most companies who extend credit have a special department in its own just to deal with deadbeats. this goes for every business, even business that accept checks (the supermarket even, the court is loaded with check bouncers from supermarkets here, on a daily basis who refuse to make good on thier bounced checks). so if you tell me you have not had to make phonecalls, front door apearences, write letters requesting them to pay up, no bounced checks, then you should advertise your strategies online, there are billion $$$ companies that would pay for your methods of zero collection/zero loss to deadbeats

packerbacker
12-17-2004, 01:52 PM
it's also impossible! every business who extends credit has a certian % of losses, and spends time and money with the collection proccess. in fact most companies who extend credit have a special department in its own just to deal with deadbeats. this goes for every business, even business that accept checks (the supermarket even, the court is loaded with check bouncers from supermarkets here, on a daily basis who refuse to make good on thier bounced checks). so if you tell me you have not had to make phonecalls, front door apearences, write letters requesting them to pay up, no bounced checks, then you should advertise your strategies online, there are billion $$$ companies that would pay for your methods of zero collection/zero loss to deadbeats






Can you read? I just did.

TREAT YOUR CUSTOMERS GOOD
SHOW UP ON TIME
DO WHAT YOU SAY YOU WILL DO
PREFORM WELL

Its not that hard. Your problem is you look for the worst in everyone while we look for the best.

rodfather
12-17-2004, 01:55 PM
I actually have a certain % factored into my yearly Business Plan for uncollectable and/or write-offs. I won't say what that is or how much it adds up to, but it's an expense line item.

If you have zero uncollectables each year, then I commend you for your business savvy. But having no write-offs or uncollectables has NOTHING AT ALL to do with "customer satisfaction. Period

bobbygedd
12-17-2004, 01:59 PM
amazing. the only credit extending business since the beginning of time to not suffer any loss, or have to purseu collections IN ANY WAY, and it is a simple minded lawnboy from kansas. you need to contact the dept of treasury, the government, every department store in the country, they would pay millions for you show them how to operate a zero loss/zero collection effort operation. congradulations. you have done what no business in history has been able to do. YEA RIGHT, and if i click my heels 3 times, me and toto will be in kansas

therainman
12-17-2004, 02:08 PM
Rodfather hit the nail on the head. Non-payment is often not linked to customer satisfaction. It has more to do with preparedness and diligence when it comes to contract preperation and collection of payment. In my haste to finish last minuet work and tie-up all loose ends near the sale of my business, we did an install without receiving our deposit. That was a deviation from normal procedure, but we thought all would be fine due to the fact the customer was a church and youth center receiving state funds for construction. Long story short, I will show the largest non-payment entry in my books ever, larger than all other years combined in fact. the preacher " the reverend" was extremely pleased with the out-come and even mentioned a newspaper article was forth coming and we would be mentioned in the article as one of the many contractors on site. Still I will be suing to get my $2700.00


Shawn

osc
12-17-2004, 02:20 PM
70 dollars in ten years. However it did take me over a year to collect 11 grand one time. I got paid 1.5% per month though.

rodfather
12-17-2004, 02:20 PM
Uhhhh, obviously if nothing was lost then why would we spend time chasing deadbeats? We dont have any. Its called "customer satisfaction"

If your good to them then they are good to you. Its a 2 way street

Novel idea huh!?!?

If you don't think lending institutions like banks, S&L's or credit card companies like VISA, MC, American Express, etc., don't number-crunch in a "deadbeat factor $$$" into their business plan, you're sadly mistaken.

I worked corporate with Hertz (always striving for better and better customer satisfaction) for some 14 years and we had a "deadbeat/write-off/uncollectable" dollar amount every year in the budget.

If we didn't, we were only kidding ourselves and our shareholders.

packerbacker
12-17-2004, 03:28 PM
Edited:

Stop Now. This was totally uncalled for. I suggest you listen to what Sean said. This nonsense has to stop. Jodi

packerbacker
12-17-2004, 03:30 PM
If you don't think lending institutions like banks, S&L's or credit card companies like VISA, MC, American Express, etc., don't number-crunch in a "deadbeat factor $$$" into their business plan, you're sadly mistaken.

I worked corporate with Hertz (always striving for better and better customer satisfaction) for some 14 years and we had a "deadbeat/write-off/uncollectable" dollar amount every year in the budget.

If we didn't, we were only kidding ourselves and our shareholders.





Uhhhh, show me where i said that? PLease provide the post where i said i even thought that? You and gedd are pretty good at making things up. You guys should go into business together.

bobbygedd
12-17-2004, 03:32 PM
you better watch it, mr. addams gonna put you in time out. know what happens then? you have to go to another forum with all the misfits. you want that? and for your info, i'm 40 yrs old, it was my birthday last week, and you didn't even send a card, is that nice? now shape up kid

packerbacker
12-17-2004, 03:38 PM
you better watch it, mr. addams gonna put you in time out. know what happens then? you have to go to another forum with all the misfits. you want that? and for your info, i'm 40 yrs old, it was my birthday last week, and you didn't even send a card, is that nice? now shape up kid





ROFLMAO, there is no way your 40!!!!!!!! If you are i feel very sorry for you and the people around you.

Your a loser gedd, and you can have your little site all to yourself. Things didnt change around from 6 months ago. Still a bunch of ****-head know-it-alls like you snaking their way through life. You wont make it and you'll be back at Burger King working the fry machine.

To the rest of you...have a good Holiday and dont let gedd get you down. He's a troll. Plain and simple. I'll come around 6 months from now and he will still be complaining abou something.

And to Sean Adams...your letting gedd ruin this site. Get control over the MUTTS that post here. He's driven to many people from here.

rodfather
12-17-2004, 03:38 PM
[B]





Uhhhh, show me where i said that? PLease provide the post where i said i even thought that? You and gedd are pretty good at making things up. You guys should go into business together.

An earlier post of yours you said, "we have no deadbeats". Don't you remember? Page 2 I believe, post 19.

packerbacker
12-17-2004, 03:42 PM
An earlier post of yours you said, "we have no deadbeats". Don't you remember? Page 2 I believe, post 19.




Wow, your right , i said that


We, as in " my company'"
We, as in " me"

Why do i constantly have to spell everything out for people here. I assume most of you made at least past highschool?

bobbygedd
12-17-2004, 03:43 PM
man, i think mr. addams be dusting off that button real soon. see the way he picks on me sean? i have feelings u know. am i not human?

bobbygedd
12-17-2004, 03:45 PM
Wow, your right , i said that


We, as in " my company'"
We, as in " me"

Why do i constantly have to spell everything out for people here. I assume most of you made at least past highschool?
actually, no.... BUT I STILL do the same thing as you for a living, EXCEPT i'm better at it, and i DON'T lower my prices to steal work.

packerbacker
12-17-2004, 03:49 PM
actually, no.... BUT I STILL do the same thing as you for a living, EXCEPT i'm better at it, and i DON'T lower my prices to steal work.




Well that explains everything! You just opened a huge door on why you are how you are. This is my last post to you and im out. If i would of known that you couldnt even finish high school i never would of even argued with you. Talk about having a battle of wits with an unarmed man. LOL. You expext to run a business but you didnt even graduate high-school? ROFLMAO. To funny man..to funny. I take all my spelling comments back to.



ROFLMAO, didnt even graduate highschool (shakes head in disgust)


See ya bud, have fun trying to run a company with a GRADE SCHOOL diploma. Or did i assume to much thinking you made it to 8th grade?

rodfather
12-17-2004, 03:49 PM
Wow, your right , i said that


We, as in " my company'"
We, as in " me"

Why do i constantly have to spell everything out for people here. I assume most of you made at least past highschool?

Perhaps you have to spell everything out here (as you say) because your initial attempts to communicate your thoughts are misunderstood. And yes, I did make it past high school continuing my formal education with a Bachelor of Science in Marketing, another Bachelor of Science in Economics, and a Masters of Business Administration in Industrial Relations.

I won't bore you with my business experience btw...

Tn Lawn Man
12-17-2004, 03:50 PM
Back on topic........


$35 here

I too factor in the fact that you will lose some money.

It WILL happen.

If you haven't lost any money then:

1. You work too hard to please the customer....and yes that is possible

or

2. You worked too hard at collecting - for me the $35 I lost was not worth fighting for...the person was nutty as an outhouse rat.

Lazer_Z
12-17-2004, 03:54 PM
packersmacker I have heard enough of this sh*t you are an utter @ssh*le. You can't let things go can you Bobby ask something relating to the lawn biz and you stalk him and call him names and such. Then Rodfather jumps in and you start in on him this is enough i'm not looking for a fight but just stop all the bullsh*t. Rod,Bobby and many,many others here are very well respected I am one of those people who hold both of them and many more guys at a very,very high ranking.

Now I will answer a question I know is coming "why?"
The answer is simple. I hold these two men and the many others (too many to list) at a high ranking because they are full of information and are trying to help people new to the biz out. But then you show you face after a long 6 months and start right off basshing Bobby's posts and then stalking him to every thread here on LS and the same thing happens.

olderthandirt
12-17-2004, 03:54 PM
I don't loose $$$$$ I get even with those that owe it to me. :dizzy:

Mac

packerbacker
12-17-2004, 03:54 PM
Perhaps you have to spell everything out here (as you say) because your initial attempts to communicate your thoughts are misunderstood. And yes, I did make it past high school continuing my formal education with a Bachelor of Science in Marketing, another Bachelor of Science in Economics, and a Masters of Business Administration in Industrial Relations.

I won't bore you with my business experience btw...






Good

The point was when no i didnt have any collectibles this year. I dont see why its so hard to understand. If you treat people right they will do the same to you. Not everyone is bending their customers over every chance they get. My customers have 30 days to pay me and 99& of them pay me within 10 days.

packerbacker
12-17-2004, 03:56 PM
packersmacker I have heard enough of this sh*t you are an utter @ssh*le. You can't let things go can you Bobby ask something relating to the lawn biz and you stalk him and call him names and such. Then Rodfather jumps in and you start in on him this is enough i'm not looking for a fight but just stop all the bullsh*t. Rod,Bobby and many,many others here are very well respected I am one of those people who hold both of them and many more guys at a very,very high ranking.

Now I will answer a question I know is coming "why?"
The answer is simple. I hold these two men and the many others (too many to list) at a high ranking because they are full of information and are trying to help people new to the biz out. But then you show you face after a long 6 months and start right off basshing Bobby's posts and then stalking him to every thread here on LS and the same thing happens.





That was a well thought out and intelligent post! Congratulations! Ive already explained to everyone in class here that Gedd came at me first and until he stops then neither do I. Its that easy. BTW i notice your from Jersey also? LOL

rodfather
12-17-2004, 04:00 PM
BTW i notice your from Jersey also? LOL

And you're from Kansas...but we won't hold that against you. :D

bobbygedd
12-17-2004, 04:01 PM
ok, packer, i'm sorry. do you accept my apology?

tiedeman
12-17-2004, 04:02 PM
now are you talking about money loss from giving discounts or from non-payers.

If you are talking about non-payers I have $108.00 from a snow removal job

If you are talking about discounts given, probably close to $800 to $1000

packerbacker
12-17-2004, 04:04 PM
ok, packer, i'm sorry. do you accept my apology?






No i dont. Apologies dont mean anything to me. If your truly sorry then you will stop putting people down for how they do things. Everyone here has tried to tell you that we all do thing differently. We are all not going to agree. This forum is here to get new ideas and to learn NOT to ram your ideas down someones throats.


Ive been doing this for 5 years succesfully so obviously im doing something right. If you dont agree with me fine but dont tell me Im wrong.

I told you the other day to start explaining things to people not just calling them losers and telling them they are failures. If you are 40 as you claim to be then act like an adult.

rodfather
12-17-2004, 04:05 PM
Packer, I'm happy for you that you have zero dollars in uncollectables btw. I'm hoping mine is under 10 grand for 04, but there is still 2 weeks left.

rodfather
12-17-2004, 04:08 PM
now are you talking about money loss from giving discounts or from non-payers.

If you are talking about non-payers I have $108.00 from a snow removal job

If you are talking about discounts given, probably close to $800 to $1000

write-offs, deadbeats, uncollectable funds, etc., no discounts tiedeman

bobbygedd
12-17-2004, 04:11 PM
which brings me to my next question: u ever get ***** slapped by a 40 yr old midget with arms the size of bowling balls?

packerbacker
12-17-2004, 04:11 PM
Packer, I'm happy for you that you have zero dollars in uncollectables btw. I'm hoping mine is under 10 grand for 04, but there is still 2 weeks left.






Im happy to but i can tell you this much. I dont offer the services you do. Im a smaller company and i dont have to worry about those things. Im not trying to sound like a jerk because i dont know the whole story but if you have 10,000 worth of collections then something is wrong.

rodfather
12-17-2004, 04:23 PM
but if you have 10,000 worth of collections then something is wrong.

Yes and No.

In the sense of "yes", I need/plan on paying greater attention to my AR's in 2005 which will be done with a full time book keeper instead of one just part time.

In the sense of "no", I'd give you odds that there are LCO's here in the good ole US of A that would love to ONLY have 10 grand of write-off (for whatever reason).

But bad debts, write-offs, uncollectables, etc., is a part of any "business" that extends credit. And that is all I was trying to convey earlier.

packerbacker
12-17-2004, 04:30 PM
Yes and No.

In the sense of "yes", I need/plan on paying greater attention to my AR's in 2005 which will be done with a full time book keeper instead of one just part time.

In the sense of "no", I'd give you odds that there are LCO's here in the good ole US of A that would love to ONLY have 10 grand of write-off (for whatever reason).

But bad debts, write-offs, uncollectables, etc., is a part of any "business" that extends credit. And that is all I was trying to convey earlier.






Understood and just so you know this is the first year i didnt have to send out late notices or go back and uninstall plants and trees just to get money. Its refreshing, i can almost read a perspective customer now and tell if they are good for their word.

rodfather
12-17-2004, 04:34 PM
Understood and just so you know this is the first year i didnt have to send out late notices or go back and uninstall plants and trees just to get money.

Congrats :) ...try "taking back" mowing someone's lawn LOL

packerbacker
12-17-2004, 04:36 PM
Congrats :) ...try "taking back" mowing someone's lawn LOL




Yeah i know....mowing is 85 % of my business. I think i rely on it to much to bring in income. I was actually thinking about getting into water gardens this year. But i dont know anything about them. Maybe its time to hit the library?

rodfather
12-17-2004, 04:47 PM
Water gardens huh? Not a bad idea IMO. Big bucks where my dad lives in Myrtle Beach, SC btw

wbw
12-17-2004, 04:49 PM
Packerbacker...all other things being equal I would rather have an education than not. Having said that I know MANY very, very successful buisinessmen with very little formal education. I have several relatives who did not only not finish High School, they never even started. Yet, somehow, they have an eight figure net worth. Perhaps an educated man like yourself could explain that to me. Please use simple words as I have no education beyond High School.

Sean Adams
12-17-2004, 04:50 PM
bobbygedd - please refrain from inferring you might slap someone. Talks of violence do not belong on this board.

packerbacker - next time I see you follow a post made by bobbygedd, you are gone - no discussion. I have been watching this garbage long enough. You are baiting people and it is not appreciated.

wbw
12-17-2004, 04:53 PM
Packerbacker...all other things being equal I would rather have an education than not. Having said that I know MANY very, very successful buisinessmen with very little formal education. I have several relatives who did not only not finish High School, they never even started. Yet, somehow, they have an eight figure net worths. Perhaps an educated man like yourself could explain that to me. Please use simple words as I have no education beyond High School.

packerbacker
12-17-2004, 05:08 PM
bobbygedd - please refrain from inferring you might slap someone. Talks of violence do not belong on this board.

packerbacker - next time I see you follow a post made by bobbygedd, you are gone - no discussion. I have been watching this garbage long enough. You are baiting people and it is not appreciated.






Yup.......

mtdman
12-17-2004, 08:22 PM
it's also impossible! every business who extends credit has a certian % of losses, and spends time and money with the collection proccess. in fact most companies who extend credit have a special department in its own just to deal with deadbeats. this goes for every business, even business that accept checks (the supermarket even, the court is loaded with check bouncers from supermarkets here, on a daily basis who refuse to make good on thier bounced checks). so if you tell me you have not had to make phonecalls, front door apearences, write letters requesting them to pay up, no bounced checks, then you should advertise your strategies online, there are billion $$$ companies that would pay for your methods of zero collection/zero loss to deadbeats


That wasn't the question, though. The question was how much you lost from deadbeats. I had 1 or 2 people I had to bill a couple times, and pursue via phone. Obviously that costs money and time. But, it's a cost of doing business. I got my money from them, along with late fees, thus they were not deadbeats, but late payers. And the late fees are there to make up for the loss of money and extra time spent getting them to pay. I made $30 off late fees, and no way did I spend that much in 3 phone calls and 2 extra billings.

Overall, I have had very few deadbeats in the past 5 years. The last time I had problems was in 2002, which coincided with the economic problems. One guy moved away owing $$, the other chick bounced a check and wasn't going to pay until I filed criminal charges with the county. I consider myself lucky that I don't have habitual problems with that, but then again I try to stay on top of those things and not let people get too far behind, and weed them out to begin with. Not having a lot of commercial customers help, as well.

captaingreen
12-17-2004, 09:01 PM
Thankfully I haven't lost a single dollar since I started 2 years ago. I did have to issue my first credit this week, one guy overpaid me $35. I haven't enforced any late fees. I did have one guy who was consistently late until I reminded him of the late fee policy.

the scaper
12-17-2004, 10:02 PM
$35 lost for me on a non regular, and probably 3-4 hours lost in overall collection. Wisdom gained....PRICELESS! I'm a happy camper!

Kelly's Landscaping
12-17-2004, 10:50 PM
Like Rod I think many of you are full of it. We all have a few dead beats I have had quite and education of what to look for in the last 2 years and one thing I have found is trust my first instincts. I would be batting 1000 if I only trusted my gut feelings every time but when money enters the picture you sometimes over ride your self. I do need to weed them out better if someone wants to even discuss price now after I give a quote they are gone! Its that fast I have never been burned by any one who did not try to haggle before hand.

If you have some one that you work for who comments on your prices and says they are high dump them. To me that is an insult and total disrespect I do not tolerate that. And like Mac revenge is something that can keep you warm at night and I might not plow but I still own one nudge nudge wink wink. How much have I lost? A lot more then some of you but I also have 25k a month in billing your going to lose something. And customer satisfaction means nothing 3 of my most satisfied customers still owe me a good chunk of change some people are born thieves and if they can rob you they wont think twice on it.

Harry0
12-17-2004, 11:07 PM
I average a few deadbeats a year(maybe 200-400) and I usually do not chase every nickel. I charge enough to cover minimal losses. I do write letters after terminating business with them telling them "what goes around comes around"among other things. Then I am personnally satisfied. It dosent put the$$$in my pocket but I feel alot better-Harry

Lawrence Lawns
12-17-2004, 11:40 PM
Can you read? I just did.

TREAT YOUR CUSTOMERS GOOD
SHOW UP ON TIME
DO WHAT YOU SAY YOU WILL DO
PREFORM WELL

Its not that hard. Your problem is you look for the worst in everyone while we look for the best.
Yeah, but sometimes it doesn't matter what you do....you treat all customers the same but there always seems to be someone who want to drag their feet! A bad apple in every bunch. You've just been lucky.

captaingreen
12-18-2004, 12:20 AM
I average a few deadbeats a year(maybe 200-400) and I usually do not chase every nickel. I charge enough to cover minimal losses. I do write letters after terminating business with them telling them "what goes around comes around"among other things. Then I am personnally satisfied. It dosent put the$$$in my pocket but I feel alot better-Harry
I think you hit the nail right on the head "What goes around does come around". I pay all my bills and on time, fortunately my customers have done the same, maybe late, but never unpaid, ever. I had this discussion with one of my customers and he said "I don't think you'll ever have a problem not being paid because you know your customers on a personal basis". Keep in mind my customer base is only about 40, but most of them I've had since I started my business. I also beleive in trusting my gut and have turned down work because of it, however I realize the larger companies are not afforded that opportunity most of the time.

HOOLIE
12-18-2004, 12:28 AM
$105 for this year, but the fat lady has not yet sung, he has until 12-31 to pay before I haul his big caboose into court.

mtdman
12-18-2004, 05:31 AM
Personally, I'm thinking it's the guys with the large deadbeat $$ that are doing something wrong. If you aren't collecting all your money from your work, you're only screwing yourself. It's a simple thing to track your A/R, and know who owes what for when. I keep an eye on that and don't let people get more than a month behind. When you do get scragglers, keep after them until they pay. It's the guys that let themselves get shafted that set the precident that affects everyone else. If people know they CAN screw the lawn guy without repercussions, they WILL screw the lawn guy.

captaingreen
12-18-2004, 08:35 AM
Personally, I'm thinking it's the guys with the large deadbeat $$ that are doing something wrong. If you aren't collecting all your money from your work, you're only screwing yourself. It's a simple thing to track your A/R, and know who owes what for when. I keep an eye on that and don't let people get more than a month behind. When you do get scragglers, keep after them until they pay. It's the guys that let themselves get shafted that set the precident that affects everyone else. If people know they CAN screw the lawn guy without repercussions, they WILL screw the lawn guy.
Well said!

packerbacker
12-18-2004, 09:51 AM
Yeah, but sometimes it doesn't matter what you do....you treat all customers the same but there always seems to be someone who want to drag their feet! A bad apple in every bunch. You've just been lucky.





No i dont, i had one customer who's a single male thats a doctor who lives in a 350,000 house and complained about a $5.00 increase. HIs house was miles from any of my other ones so i dumped him. I wasnt making anything driving out there. But my customers all get the same treatments every week. Barring weather their homes get done on the same every week for 40 weeks out of the year.

YardPro
12-18-2004, 10:26 AM
it's also impossible! every business who extends credit has a certian % of losses, and spends time and money with the collection proccess. in fact most companies who extend credit have a special department in its own just to deal with deadbeats. this goes for every business, even business that accept checks (the supermarket even, the court is loaded with check bouncers from supermarkets here, on a daily basis who refuse to make good on thier bounced checks). so if you tell me you have not had to make phonecalls, front door apearences, write letters requesting them to pay up, no bounced checks, then you should advertise your strategies online, there are billion $$$ companies that would pay for your methods of zero collection/zero loss to deadbeats
LOL
guess all the pioneers for those industries are at fualt too. Darn scrubs, letting thier customers get away with those things...

YardPro
12-18-2004, 10:28 AM
We also have not had a single collection issue this year,
and as far as sharing the secret with you, i have many times. CUSTOMER SELECTION, PROFESSIONALISM......

YardPro
12-18-2004, 10:36 AM
as far as some not believing there are those of us with no writeoff's. it occasionally happens.
this year we have had a very good year.
in 99 however, i was shafted on over $18K.
that was the reason i partnered with another company.

tinman
12-20-2004, 10:32 PM
Good

The point was when no i didnt have any collectibles this year. I dont see why its so hard to understand. If you treat people right they will do the same to you. Not everyone is bending their customers over every chance they get. My customers have 30 days to pay me and 99& of them pay me within 10 days.

I disagree that treating them all right will make them pay you on time or at all. Lawn care is on the bottom of the list when bills are paid. If things get tight they will hold your money. If they lose their home and have to move, they will not think twice about $70 they owe the Lawn Guy.

Wells
12-20-2004, 11:43 PM
I have around $350 in uncollected A/R this year but still hoping to close out the year under $100. The interesting thing is one of the clients that owes money also owns a landscaping company that we did christmas lighting for.

I have yet to have a year that passed without some sort of uncollected A/R. No matter how well you screen your clients or how great of service you provide there always seems to be someone who stiffs you in the end.

Just like Rodfather, I now factor a percentage of uncollected A/R into my budget.

Soupy
12-21-2004, 04:09 AM
We have $4050 overdue right now. But by knowing my customers they will all pay up soon except for a few that we dropped months ago. The total for the dropped deadbeats are around $1500.

One thing some of you (except rodfather and a few) are not understanding is. A guy with 30 accounts might not lose much or anything compared to a guy that has a few hundred accounts. You can't compare your ability to collect unless you know the % of loss.

mtdman
12-21-2004, 04:52 AM
What I don't understand is, whether you have 10 or 1000 accounts, how do you allow these deadbeats to run up a tab and get away with it? Is it just a few people with large numbers, or many people that add up? I can understand cutting your losses if you are a large company and not wasting time pursuing someone who owes you say $100, if you are making $10 grand a week. That is a small percentage.

But, I know that personally I keep an eye on the A/R. If I see someone get behind or that is late, I pay attention, and I cut them off asap. My point is if you keep your eye on these things, and pursue them, you shouldn't let your losses from deadbeats get that large. I don't like giving away my wages for free.

Soupy
12-21-2004, 05:24 AM
What I don't understand is, whether you have 10 or 1000 accounts, how do you allow these deadbeats to run up a tab and get away with it? Is it just a few people with large numbers, or many people that add up? I can understand cutting your losses if you are a large company and not wasting time pursuing someone who owes you say $100, if you are making $10 grand a week. That is a small percentage.

But, I know that personally I keep an eye on the A/R. If I see someone get behind or that is late, I pay attention, and I cut them off asap. My point is if you keep your eye on these things, and pursue them, you shouldn't let your losses from deadbeats get that large. I don't like giving away my wages for free.

It doesn't take long for the deadbeats to run up a bill if you give someone net 15 days to pay and bill after the work is done. I'm going to get real firm on due dates. It was always my policy to give them 30 days even though the bill said 15 days. After 30 days they owe you for 2 months work by the time you stop service. I have a lot of customers that take their sweet time paying, but they pay and that is why I always give them extra time. I am now going to due upon receipt and after the 15th day I am stopping service, but this will still put them at 6 or 7 cuts. It's just part of business. I am turning the ones I know are not paying over to collections and reporting them to the 3 major credit companies.

mtdman
12-21-2004, 05:38 AM
It sucks to have to be that way, but the alternative in losing money sucks.

Which is why I advocate both prepayments and equal monthly payment plans. With prepayment, no worries about that. If you do equal monthly payments, you're basically billing them before the work has been done most months. If they do deadbeat out on you, at least you aren't behind in terms of labor.

:D

walker-talker
12-21-2004, 05:44 AM
For me...$175 right now. I received a call from a lady on Nov 16th telling to stop mowing....I said fine. Send her the invoice for Nov, there were services on 11/1 and 11/12. She calls up and says "what the hell, I told you to stop mowing" and said that she is not paying....so it might be another $95 before it's all over with. Both accounts will be handed over to my attorney.

Soupy
12-21-2004, 05:59 AM
It sucks to have to be that way, but the alternative in losing money sucks.

Which is why I advocate both prepayments and equal monthly payment plans. With prepayment, no worries about that. If you do equal monthly payments, you're basically billing them before the work has been done most months. If they do deadbeat out on you, at least you aren't behind in terms of labor.

:D

I use both of those methods too. But it is hard to get people in my area on these payment plans. If I refused customers because they don't want those plans then I would be worse off. I am thinking about making all new customers pay for each month in advance or pay weekly. The weekly customers will get one cut credit if they are not home, but that's it. Actually I am positive I am going to do it this way next year.

As rodfather said, if you plan for this loss and charge accordingly, then it isn't going to break you. It does suck knowing you worked for free though.

mtdman
12-21-2004, 06:05 AM
Yes, you gotta plan for loss. At the same time, I'm going to do everything I can to eliminate that loss.

:D

meathead1134
12-21-2004, 09:58 AM
Glad to see this thread came back down to earth. This is my first year and I have collected everything. I am owed $0.00

GreenMonster
12-21-2004, 10:02 AM
I'm owed $0. Installation and hardscape is the about 75% of my work. I don't know if that is the difference or not.

rodfather
12-21-2004, 12:18 PM
Like I said, I plan and budget for uncollectibles...I'd be kidding myself if I didn't.

Sorry, but it's a way of life and uncollectibles/deadbeats/write-offs, etc., are a part of this business...any business for that matter. For those of you who have 0 dollars in uncollectibles each year, well, I tip my hat to you. Unfortunately, I can't claim that statement. 11 years ago starting out, I probably didn't have any write-offs. 11 years later with 150 some accounts doing close to 300 acres a week in just mowing (not counting landscaping and snow plowing), well, what can I say...

rodfather
12-21-2004, 12:23 PM
I'm owed $0. Installation and hardscape is the about 75% of my work. I don't know if that is the difference or not.

I think it might some Mark. You probably get some sort of deposit for your work. How am I supposed to take back cutting someone's lawn? BTW, mowing accounts for 73.8% of my business.

Ol'time Lawncare
12-21-2004, 12:28 PM
Rodfather, i hope to have 150 accounts one day, all of them to be in 10 mile radius

rodfather
12-21-2004, 12:31 PM
Rodfather, i hope to have 150 accounts one day, all of them to be in 10 mile radius

Me too. Sure would cut down on the windshield time, huh.

GreenMonster
12-21-2004, 12:39 PM
I think it might some Mark. You probably get some sort of deposit for your work. How am I supposed to take back cutting someone's lawn? BTW, mowing accounts for 73.8% of my business.

yeah, I agree. I think the deposit does make a difference. Not to toot my own horn, but I believe good work and design contributes too. Not to say that anyone is getting shafted because they do poor work, but you'd probably have a harder time collecting balance payments if you put in a sh!tty looking landscape.

My success on the lawn care side can prolly also be attributed to municipal work being more than half my maintenance. Check from them every month, on time.

Rod, any regrets to growing as big as you have?

rodfather
12-21-2004, 12:46 PM
Rod, any regrets to growing as big as you have?

Regrets? None, other than I wish I had started earlier in my life. Growing pains? A bunch of 'em.

GreenMonster
12-21-2004, 12:48 PM
Regrets? None, other than I wished I had started earlier in my life.

yeah, that's my BIGGEST regret too. I should have done this year's ago.

Over how much distance are you accounts spread out?

BTW, I was just through Clinton a few weeks ago on my way to Lancaster, PA. I've stayed at that Holiday Inn in the past too. Nice part of Jersey.

Oh yeah, congrats too. Your reply will be post #4000!

mtdman
12-21-2004, 12:49 PM
Uncollectables may be a fact of the business, but the day I give up and accept them will be a cold day in hell indeed. I don't like losing money to jagoffs that don't wanna pay.

derek1
12-21-2004, 12:53 PM
No contracts with my residential. Lost 30 bucks on a fert app. More like I just let the b**ch win if she cares that much, and decided to finally ditch that crappy neighbourhood for good. related question, how do u tell someone you dont do the bad side of town without sounding like a jackass? :blush:


What I normally say is that our coverage area has not extended that far yet and I will put there name on this imagineary list that I have.

rodfather
12-21-2004, 12:54 PM
You should have given me a ring Mark. I would have let you buy me lunch or something...LOL. BTW, we take care of the grounds at the Holiday Inn you stayed at.

Distance we cover? I'm gonna say from one end to the other 40 miles.

4000 posts!!! Good Lord, I gotta get a life soon...

rodfather
12-21-2004, 01:00 PM
Luckily though, my shop is pretty much centered smack in the middle of the area we cover so the farthest I would say we travel is 20 some miles.

Ol'time Lawncare
12-21-2004, 01:03 PM
Rodfather, if i may ask, how many guys work for you and how many crews do you have? i mean , standing from my point of view 150 account is alot but thats my goal!

GreenMonster
12-21-2004, 01:12 PM
You should have given me a ring Mark. I would have let you buy me lunch or something...LOL. BTW, we take care of the grounds at the Holiday Inn you stayed at.




yeah, I think a 20 mile radius is a good number. Of course, you need to lump a few that are 20 miles away together.

I woulda given you a ring, but like I said, I was just passin' through.

It's been a while since I stayed at that Holiday, but I'm sure the grounds were premo! :drinkup:

rodfather
12-21-2004, 02:01 PM
Rodfather, if i may ask, how many guys work for you and how many crews do you have? i mean , standing from my point of view 150 account is alot but thats my goal!

6 guys not including me. One mowing crew of 3, 1 mowing crew of 2, and another crew of 2 that does both mowing and landscaping.

Johnny
12-21-2004, 02:06 PM
Still waiting on a $55.00 payment from September.