Thread: Late Payers
View Single Post
Old 06-13-2013, 10:57 PM
123hotdog's Avatar
123hotdog 123hotdog is offline
LawnSite Senior Member
Join Date: Aug 2012
Location: Bristol TN
Posts: 468
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.
Licensed and Insured
Operating since 2007
1993 Isuzu NPR dove tail open bed 4cyl diesel
1978 F-350 Dump Truck
1988 Z-71 Chevy 4x4 Meyers Plow
2005 Chevy HD 2500 6.0
1989 Toyota One ton Flatbed
2013 61" Bad Boy Outlaw XP 36 Vanguard
2013 54" Bad Boy Outlaw Stander Kawasaki
2014 48" Wright Walk Behind
Reply With Quote
Page generated in 0.03929 seconds with 8 queries