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Old 01-07-2000, 05:48 PM
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JimLewis JimLewis is offline
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Join Date: Dec 1999
Location: Beaverton, OR
Posts: 6,818
This is a challenge for a lot of us. I still deal with it every month. And if you don't get it under control early, it just turns into bigger problems when your company gets bigger. <p>Most of the solutions presented here are good. But they don't do much for actually getting your money to you on time for sure. <p>For that reason, I am implimenting a new policy this spring that I really think will solve the problem. From now on when I give a bid I give 2 prices. One if they sign up for our automatic checking account debiting program and another price ($10 - $15 higher per month) if they just prefer to be invoiced through the mail. <p>I found a cool company in my area that will set people up on automatic check debiting. If you can't find one in your area (I found this one in the yellow pages under billing) then feel free to email me and I will give you the number to the one I work with. I am sure the service would work regardless of where you are located. <p>The second thing I do now is I cut off all habitual late payers. I will give them an option to sign up for the automatic check debiting system if they want to continue being serviced by us. But if they don't I drop them (Very politely). <p>Tip - don't drop them until you get your $$. Bug them until they pay THEN drop them. Otherwise they may never pay. Keep them thinking your still going to service them until you get your money. <p>These two practices combined I think will work well. It sucks because you hate to loose a customer or shrink the amount of your total accounts. There's a ego blow we fill when we go from say 80 customers to 65. But you have to ask yourself this question; would you rather work for 65 customers and know that you're always going to be paid on time (have a regular, dependable income every month) or would you rather work for 80, and have to harrass 15 of them every month for payment, get your hopes up and then be let down when the money you are expecting doesn't come in, etc.... ? For my time, I'd rather work for those who pay on time, period. <p>I like one guys thougts I read somewhere lately. He said he leaves the late payers to the &quot;bottom feeders&quot; in the business. Which do you want to be? A bottom feeder? Or a professional business? <p>----------<br>Jim Lewis - Lewis Landscape Services<br>
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