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  #11  
Old 01-31-2014, 02:06 PM
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phasthound phasthound is offline
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Originally Posted by humble1 View Post
I love how people get mad at me when they are 90 days past due. We have about 10,000 out over 90 days. Work that was done in Nov.
I use an outside collection agency American Profit Recovery and I let ny customers know that i need to wrap up their balance before the first week of Feb because anything over 90 days goes to collections. It amazes me how people get mad. We left a slip at time of application, sent an invoice, then send 3 statements. Then if they pay they dont pay the 3 months of late feees. Pisses me off.

So what is your approach?

Mike
I'm from Jersey, we gotta guy for dat. Seriously, I had the same problem collecting from landscapers until we took credit cards. I don't like paying the fees, but I sleep much better now that I get paid immediately.
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  #12  
Old 01-31-2014, 03:34 PM
Service 1st Lawn Care Service 1st Lawn Care is online now
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Seems we always have 5 or 6 folks who like to play this game, Invoice first then 3 statements, then a phone call. Then a week later right about dinner time knock on the door to see if they are having some trouble with their mail service? Then a week later turn over to my lawyer. Usually the lawyer letter gets the last one to pay next day.
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  #13  
Old 01-31-2014, 08:23 PM
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I really don't have a collection problem. 99% of my customer will actually chase me down the street to pay me. The few who don't pay I write off. To me there is more hassle and expense chasing down Dead Beats than it is worth. BTW I don't write off enough to worry about.

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  #14  
Old 01-31-2014, 08:44 PM
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Originally Posted by Ric View Post
.

I really don't have a collection problem. 99% of my customer will actually chase me down the street to pay me. The few who don't pay I write off. To me there is more hassle and expense chasing down Dead Beats than it is worth. BTW I don't write off enough to worry about.

.
To me Ric, its about principle. What I have out isnt going to break me. I remember when a man could shake your hand and his word meant something. Now the girl behind the counter doesnt say please, or thank you. And when she gives back too much money most people walk out the door feeling prowd that they ripped off the store owner who employs that girl. Morals and manners seem to be an elective these days...
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  #15  
Old 01-31-2014, 08:45 PM
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Originally Posted by Ric View Post
.

I really don't have a collection problem. 99% of my customer will actually chase me down the street to pay me. The few who don't pay I write off. To me there is more hassle and expense chasing down Dead Beats than it is worth. BTW I don't write off enough to worry about.

.
also as the amount of accounts goes up, so does the amount of exposure to deadbeats or internal theft. But having said that you cant pull huge profits without many people.
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  #16  
Old 01-31-2014, 09:15 PM
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ted putnam ted putnam is offline
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Originally Posted by sprayboy View Post
If they are continually slow I will set them up on prepay only the next year.
I have just cancelled a few out, after I finally get my money, and never go back unless they call me. Then it is prepay also.

Sometimes it's not worth having them if you are always chasing your money.

You are absolutely right. I handle mine the same way. And because of this, I am in a very similar situation to Ric. A/R's are minimal. I don't have time for small claims court. If they don't pay, I stop treating their lawn until payment is received. If they drag their feet too long, I cut them loose. My memory fails me sometimes but my database never forgets. I've had a handful try to sneak in the back door again after 2 or 3 years. Not always, but almost always...Once a deadbeat, always a deadbeat. I give them no slack...
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  #17  
Old 02-01-2014, 12:45 AM
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Originally Posted by humble1 View Post
To me Ric, its about principle. What I have out isnt going to break me. I remember when a man could shake your hand and his word meant something. Now the girl behind the counter doesnt say please, or thank you. And when she gives back too much money most people walk out the door feeling prowd that they ripped off the store owner who employs that girl. Morals and manners seem to be an elective these days...
That ship sailed a long time ago. I am old enough to realize DISCRETION IS THE BETTER PART OF VALOR. So why worry about a dead beat when you can replace them with a big spender. Make Lemonade.

BTW most of my accounts are old timers I have had for years. But I do get an occasional Dead Beat.

.
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  #18  
Old 02-01-2014, 01:49 AM
PenningsLandscaping PenningsLandscaping is online now
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Quote:
Originally Posted by humble1 View Post
The problem with the cc is the amount of % you give away. 2% off the top or whatever it is.
The problem is that we do multiple services in a month and bill. So we might be there for fertilizer, perimeter pest, tick control, mosquito control. so our balances can run up very fast leaving a lot of exposure to getting screwed.
2% of 10,000 is $200.

do you know what 100% of 0 is? 0. Which is exactly what you have. Factor the CC fees into your estimates and prices.

You don't have to bill every statement on a card. But having one on file, for these situations, already pre-authorized makes your life easier. You're pissing more money away on collection efforts and way more time than the $200 in credit card fees will cost you.

Last edited by PenningsLandscaping; 02-01-2014 at 01:53 AM.
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  #19  
Old 02-01-2014, 09:18 AM
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[QUOTE=PenningsLandscaping;4949483]2% of 10,000 is $200.

do you know what 100% of 0 is? 0. Which is exactly what you have. Factor the CC fees into your estimates and prices.

You don't have to bill every statement on a card. But having one on file, for these situations, already pre-authorized makes your life easier. You're pissing more money away on collection efforts and way more time than the $200 in credit card fees will cost you.[/

I'm leaning that way but I would be giving away more profit. If for easy math I did 100k a year and had a 30 per margin. The cc cost would be 2k. 30k profit the 2k would be between 6 and 7% of your profit. To raise my prices by that much plus my reg raise on materials when I'm on the high end price wise would be suicide. When the numbers get over 500k that's a lot off the top. But I hear you. Maybe anyone who is late once goes to cc and look at the history on all others and keep them on checks.
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  #20  
Old 02-01-2014, 09:31 AM
gregory gregory is offline
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do what the county goverment does down here charge them a fee to use the credit card.. its like 2.50 or something.. yea its not alot but its something...

i would think there is enough profit built into your service price to cover the 2% credit card fee like the 695.00 app would cost 13.90 i would hope you made enogh profit to cover that 13.90 for the credit card fee...


i would say if your current way is having problem then its time to change.. take credit cards and drop the slow or no payers like others have said..

i am in a different business then you but if i get a pita customer who wants to argue about 10.00 on his bill i remember him and when he calls back for work i tell him its going to be a week or so till i can get to your truck shop is real busy...if and when he brings his truck back i add alittle to his bill call it a pita fee...
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Last edited by gregory; 02-01-2014 at 09:37 AM.
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