Originally Posted by pete edwards
It's my second year in business and just found this site this year. I'm currently serviceing 60 to 70 yards a week with one helper. Business is growing quickly but i'm starting to have some customer collection issues. I will try to resolve this next season with contract only customers but I'm not sure that will fix the problem completely. 99% are good and look out for me but I'm really gettin soured by that 1%. Somehow it eased my mind a bit after reading a ton of similiar posts by people having the same issues. I thought it was just me. I had a customer come out this week and slam me and my service and it looks like now it may turn in to a no pay. Property was seviced a 100% and on time. Then I learned she was not currently working. Why don't they just be upfront and honest. I did nothing wrong she just does'nt want to pay. Still it really got under my skin.
I had the same problem when I started... but it was more than 1%. More like 30 to 40%. Solved that with service agreements. If you don't come off as a legit business then you get no respect. Not saying you. If you just show up give a price and then start servicing then they have no incentive to pay. No fear of retribution so to speak.
The agreements for me have been a scumbag reducer. Scumbags won't sign an agreement because they know you have a legal document to go after them...even if you never do it still puts the fear in them that you can. I found that if you eliminate the bi-weekly and have an agreement you eliminate most if not all scumbags and no payers.
Not the customers I want. Slower growth but better growth and more profitable in the long run.