Thread: Late Payers
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Old 06-13-2013, 11:57 PM
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123hotdog 123hotdog is offline
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Join Date: Aug 2012
Location: Bristol TN
Posts: 481
Service Agreements and Late Fees

I sent out 3 x 5 index cards (cheaper postage) about six years ago stating that 78% of my invoices came in late the previous month. I bill on the 15th, its due on the 30th, late on the 5th. I informed my customers effective immediately that I would be charging a late fee of $5 or 5% of the balance whichever is greater. I told my customers that I just could not operate on 22% of my gross. All understood and some were even apologetic. Some religiously pay late and have for years and pay the late fees every month. I went to service agreements year before last and won't mow without one. However, I didn't dare ask my existing customers to sign an agreement after we had already done business without one. They just grandfathered in. A customer that doesn't want to sign a service agreement or won't pay a late fee doesn't give a sh*t about you or your business and you don't need them.
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