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  #11  
Old 08-02-2010, 02:48 PM
germann germann is offline
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Join Date: Aug 2001
Location: Central Ohio
Posts: 148
This may sound crazy, but we are generous with people when it comes to payment speed. Alot of people are just busy or lazy, or are out of town all the time, and don't pay for 30-60 days. When I call or email a reminder, I always say I wanted to make sure they did recieve the invoice and am very polite-sometimes it gets pitched with junk mail. Even with people who are slow for cash flow reasons, we have found being patient and nice really builds loyalty and referrals. We go 90-120 days alot of times without charging fees. This is excessive, but I think treating people with respect in this matter builds great relationships. The only people I get frustrated with are those who work our prices down, are difficult to please, shop around all the time, and then pay late on top of it all...
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  #12  
Old 08-02-2010, 02:51 PM
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AI Inc AI Inc is offline
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A real lot of my customers only get paid once or twice a month.Mail always picks up from the 27th to the 5th.
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  #13  
Old 08-02-2010, 02:55 PM
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Mike Leary Mike Leary is offline
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Location: Winnemucca, Nevada
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Quote:
Originally Posted by germann View Post
This may sound crazy, but we are generous with people when it comes to payment speed. Alot of people are just busy or lazy, or are out of town all the time, and don't pay for 30-60 days. When I call or email a reminder, I always say I wanted to make sure they did recieve the invoice and am very polite-sometimes it gets pitched with junk mail. Even with people who are slow for cash flow reasons, we have found being patient and nice really builds loyalty and referrals. We go 90-120 days alot of times without charging fees. This is excessive, but I think treating people with respect in this matter builds great relationships. The only people I get frustrated with are those who work our prices down, are difficult to please, shop around all the time, and then pay late on top of it all...
I can't go 90-120 days at my suppliers without being "in jail"; why should any client pimp you for that long?
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  #14  
Old 08-02-2010, 03:19 PM
germann germann is offline
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Location: Central Ohio
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I look at it as a perk-It is fairly cheap to be patient as long as you are not desperate for the cash, and like I said, people appreciate patience. Many guys do a 5% prepay discount, which is much more expensive. At todays interest rates $1000 only earns about $20 in interest over 12 months, so as long as you have decent enough cash flow to cover yourself, your patience only costs you a dollar or two a month.
That said, you need to know the customer-and their probable reason for being late. I am not as patient with jerks.
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  #15  
Old 08-02-2010, 04:30 PM
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jvanvliet jvanvliet is offline
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Join Date: Aug 2009
Location: South Florida
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Any repair work or installation I think is going to run over $250.00 involves a written agreement outlining the scope of work, contingencies, payment terms, late penalties, and unless I have a long term relationship with the account, or receive an explanation for the delay, the absolute certainty that if I don't get paid, a mechanic lien will be filed at their expense.

If I have to pay for materials, I get a check for the material costs (plus my usurious markup) when I deliver the goods. At least I won't be out the hardware costs.

Maintenance accounts have written service agreements even if they are only a couple of $$$ a month for a small system.

Mechanic Liens are cheap to file and you can do it yourself, at least in FL. Templates are available on line for free.

Too many people skip out on you down here, specially homeowners. Usually the first letter of intent is sufficient; if not, they weren't in a position to pay any way so I may as well get on the wait and see line since liens are paid in order of the filing date.
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  #16  
Old 08-02-2010, 07:12 PM
MarcSmith MarcSmith is offline
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Location: Washington DC
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Quote:
Originally Posted by jvanvliet View Post
Too many people skip out on you down here, specially homeowners. Usually the first letter of intent is sufficient; if not, they weren't in a position to pay any way so I may as well get on the wait and see line since liens are paid in order of the filing date.
Plus you get interest and penalties. I had one for a landscape isntall that a guy sat on for 3 years.... 18% is a nice return....
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  #17  
Old 08-02-2010, 10:09 PM
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DanaMac DanaMac is offline
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To tell the truth, I don't mind if people need to pay in 2-3 installments. I would just like it if they would have the decency to call and ask or explain the situation. Rather than sending a check for $200 when the bill was for $500. Call and talk to me a little first.

or they can pay by credit card and get it taken care of now.
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  #18  
Old 08-02-2010, 10:56 PM
SoCalLandscapeMgmt SoCalLandscapeMgmt is offline
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Join Date: Sep 2007
Location: So. Cal.
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Could be worse.... I just found out Friday that one of our better clients just had several of their properties go into receivership. These are $8mil to $9mil office properties. We take care of two of them. Good news is we'll get paid from last Friday on out. The bad news.... there is no guarantee that we'll get paid for the last 3 months of work that they owe us for. That ought to be good for about a $7500 headache!
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  #19  
Old 08-02-2010, 11:00 PM
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Mike Leary Mike Leary is offline
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Originally Posted by Dan Hanson View Post
The bad news.... there is no guarantee that we'll get paid for the last 3 months of work that they owe us for. That ought to be good for about a $7500 headache!
Why do you let stuff go 90 days?
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  #20  
Old 08-02-2010, 11:26 PM
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DanaMac DanaMac is offline
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Originally Posted by Mike Leary View Post
Why do you let stuff go 90 days?
Ditto. I wouldn't keep doing work if they are that far behind. Mine are all one time jobs, not continuous jobs or contracts.
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