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Old 01-31-2014, 08:49 AM
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humble1 humble1 is offline
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Collecting Money Whats your approach?

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
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Old 01-31-2014, 09:35 AM
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Quote:
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
Sounds like you have a good system in place. But if that fails send Louie and franky in after dark with a louisville all kidding aside I hate those people. Amazing they get mad, if I was in their shoes I'd be embarrassed not mad.
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Old 01-31-2014, 09:45 AM
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10k is not chump change. You might want to consider keeping a cc on file in the future. That's a significant number of deadbeats you have. Have you tried direct contact? I would be sitting in driveways for that money.
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Old 01-31-2014, 09:48 AM
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just got a responce from a guy that owes $695 he says Ill have to see the contract. Im like you wait till 96 days to question the contract, not after the day of service or the invoice or the 3 statements you got? wtf
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Old 01-31-2014, 09:55 AM
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Originally Posted by Patriot Services View Post
10k is not chump change. You might want to consider keeping a cc on file in the future. That's a significant number of deadbeats you have. Have you tried direct contact? I would be sitting in driveways for that money.
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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.
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Old 01-31-2014, 10:05 AM
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2% on 10k is only 200 dollars. That seems well worth the cost. How much have you lost in 90 days in the form of interest and agony? 90% of my customers use cc. I couldn't imagine trying to operate on an all cash or check basis. The fact their on contract only adds to why these people feel its ok to not pay for services rendered.
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Old 01-31-2014, 10:07 AM
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Quote:
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
We do the exact exact same. We are looking at about 25k past 60.

Driving past a neighbor owing about 700 now, i asked my wife if she remembers that old time value of paying your bills? Seems to be lost these days.
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Old 01-31-2014, 10:25 AM
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JCLawn and more JCLawn and more is online now
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One auto repair shop had up on their road sign "John ***** pay your bill" I bet that was effective lol
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  #9  
Old 01-31-2014, 11:23 AM
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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.
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  #10  
Old 01-31-2014, 11:43 AM
sprayboy sprayboy is online now
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I have sent letters also that state if payment is not received by a certain date that it will be filed in small claims court. There is a filing fee of aprox $80 but you always get that back when the judge awards you the victory.

The threatening letter usually gets the payment.

Not sure how the small claims works in your state but that is a possibility.
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