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Old 05-14-2014, 08:37 PM
keys861 keys861 is offline
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Location: Central KY
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Late Fees?

This is my first year and the help that I have learned from this site has been tremendous.
I usually send out bills for the previous months service on the 25 or so with terms payable by the 7th of the following month. My question is about late fees. Do most of you add a late fee if not paid on time? If so, how much? Do you put those terms on the invoice?
Thanks
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2009 BadBoy ZT 62" 27hp Kohler
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Old 05-15-2014, 01:14 PM
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Locqus Locqus is offline
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I usually use 10% additional per month it is late. However, I rarely enforce it and use it as a deterrent or a leveraging tool when talking with the late and slow payers. Usually just a put a little line at the bottom of the invoice about paying your invoice on time to avoid late fees.
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Old 05-15-2014, 03:09 PM
GreenCanvas GreenCanvas is offline
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Location: Ohio
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Quote:
Originally Posted by keys861 View Post
This is my first year and the help that I have learned from this site has been tremendous.
I usually send out bills for the previous months service on the 25 or so with terms payable by the 7th of the following month. My question is about late fees. Do most of you add a late fee if not paid on time? If so, how much? Do you put those terms on the invoice?
Thanks
We tried late fees a few seasons ago, but stopped. Instead of trying to collect MORE money when they already weren't paying, we decided to switch the people who were consistent problems to CASH ONLY. NO CASH, NO MOW. This resolved our problem immensely!! We also changed the terms of payment on the invoices to Due Upon Receipt. I've been told that unless you offer an agreement, that they sign, you are not required to give them 30 days to pay. In our opinion work was completed and payment is due. Period. They know this bill is coming so they needed to or SHOULD have budgeted for it.
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Old 05-15-2014, 04:36 PM
eastsidelandcare eastsidelandcare is offline
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Join Date: May 2014
Location: seattle, wa
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My experience with using late fees is sketchy. It hasn't seemed to deter people who regularly pay late and they rarely will pay the late fee. Only recourse seems to be to stop doing business with them and that is not very practical in general. What I have found is that it is a small number of problem customers. Over time I have weeded them out of the mix or converted them to pay up front.

Lonnie
Eastside Landcare
www.eastsidelandcare.com
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Old 05-15-2014, 05:25 PM
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Locqus Locqus is offline
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I like the cash option!! Might be trying that this year.
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Old 05-15-2014, 09:19 PM
keys861 keys861 is offline
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Location: Central KY
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Thanks! I think I will do the Cash Only, No Cash, No Mow for my problem customers if one should ever develop. So far, so good.
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2009 BadBoy ZT 62" 27hp Kohler
Lawnboy 21"push mower
Stihl FS76 Trimmer
Stihl BG55 handheld blower
2001 Nissan Frontier (I hope to update in 2015 to a Ford F250
16' trailer (nothing fancy)
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Old 05-15-2014, 10:42 PM
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CreativeLawncareSolutions CreativeLawncareSolutions is offline
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Quote:
Originally Posted by keys861 View Post
Thanks! I think I will do the Cash Only, No Cash, No Mow for my problem customers if one should ever develop. So far, so good.
Oh, they'll develop. It's inevitable.
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