a question about those who wait to pay till 25+ days out

Discussion in 'Lawn Mowing' started by SILVERSTREAK INC, May 31, 2008.

  1. SILVERSTREAK INC

    SILVERSTREAK INC LawnSite Senior Member
    Posts: 295

    i know it sounds petty, but i find myself wasting time every month playing phone tag with people who have discrepencies about their monthly lawn bill, because they wait until the last day of the month before sending their payment in

    85 out of my 100 customers pay within 7-9 days, it just gets annoying because i send my billing cycle out on the 1st of each month then on the 2nd comes the payment from the previous month from the customer, the customer recieves my un-updated bill and then holds payment because they arent smart enough to realize i sent the bills out before i recieved my payment (which was late), many of these customers i explain it to over and over yet they still hold onto their money till the last possible second

    i was thinking, ive already on quickbooks statements put a memo at the bottom that says "please remit within 15 days" but is there anything else people have tried to get these slow/late payers to get in the groove? i want to put "services will terminate on the 20th of the month if payment isnt recieved" but it sounds cocky and also rude to those people who do pay promptly like i said i know things could be worse (and 2 or 3 clients do let it go to 65+ days out before they write a whopping check) but it does get hard to carry labor and material for 30+ days without payment + the time i waste explaining it to the same people (and if i dont return the call and have that 20 min. convo then they will hold payment until i do return the call)

    i know the answer could be simple as drop them guys! but....any ideas?
    thanks
     
  2. F3Nelson

    F3Nelson LawnSite Member
    Posts: 119

    Here's an idea

    Stop putting please remit within 15 days, and click on the little box that says due on reciept!

    Thats what my invoices say
     
  3. LawnMowerMan3875

    LawnMowerMan3875 LawnSite Member
    Posts: 46

    SilverStreak
    I bill out the last day of the month and make the payment due by the 20th of each and every month. Bottom of invoice says, any payments revieved after the 20th is subject to late fees. Its in normal size font, no bold. It gives them almost 3 weeks to pay. If no payment is recieved by then, they get a phone call advising them that if a payment isn't sent, service will be discontinues until it is....Usually they will have me stop by, they come by or even drop in in my lockable mailbox....So far no problems....Hope this helps...

    LawnMowerMan3875
     
  4. lawnwizards

    lawnwizards LawnSite Silver Member
    Posts: 2,434

    thats what i do as well. seems to work for me. a few still slip through the cracks but thats what late charges are for. give them a stiff penalty for being late and chances are they wont do it again.
     
  5. ProStreetCamaro

    ProStreetCamaro LawnSite Platinum Member
    Posts: 4,155

    Ha we have about 4 people right now that we havent received payment from at all this year. Its always the same people year after year. The thing is they always get caught up then do it over again then get caught up. Its better to be owed and know you will receive it eventualy than it is to just drop them.
     
  6. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    No don't drop them, here is the deal:

    So long you give your customers the option to pay UP until a certain time, some WILL hold payment until the very last minute. That is their choice, we may not like it but the terms of your payments are at their disposal.

    So to help eliminate the problem you will want to re-state those terms, as a suggestion I would do that for next year, make it 10 Days Due or some such thing to that effect. You could do it now but springing this surprise on them might alienate a few too, so I would wait until next year but you decide...

    Now you will still get some folks hold it until that very last day, but if you shorten the length of time it does help.
    And you also might get a few who consistently pay TOO late, these I usually or eventually drop but the choice is yours.

    Other stuffs:
    Not to contempt on you, but maybe they are smart enough lol

    Yeah that don't do no good, waste of breath I learned.

    Just re-state your terms to 10 or 15 days due, that should help.
    Then you do as you decide with those who test that beyond the limit.
     
  7. LawnBrother

    LawnBrother LawnSite Senior Member
    from SW Ohio
    Posts: 867

    Payment Due Upon Receipt. This needs to be your new due date. Then start charging late fees. Some will get cheeky and decide they don't have to pay the late fee, so add it on their next bill. You have to enforce late fees to get these guys to pay on time, or else there is no consequence, and they will keep paying you whenever.
     
  8. the angler

    the angler LawnSite Member
    Posts: 56

    i agree with the DOR.... you said you have about 100 customers??? i know you do the work you deserve your pay , alot of people on here say to drop a pita customer and just replace them ?????how do you replace them though , you drop them and get a new account ???????? your not making any less money this way but your company is not goin to grow i do everything i can to make my customers happy even if i have to grit my teeth,,,tru i have drop accounts but in the end they cant be replaced i have never understoood that ,that could be a thread all on its own............
    sorry that was off track...you sound like you make enough to carry the lass for a while even thoiugh this is a pain money for ewveryone is tight right now and i think every company now matter what work you do is goint through the same thing ...survival of the fitest sort of speak........it comes with the job just keep calling and sending letters ,nature of the beast ..
     
  9. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    there is a better way......

    my statement says, pay XXX.XX on or before the 10th,
    Pay XXX.XX after the 10th.

    thank you
     
  10. lawnwizards

    lawnwizards LawnSite Silver Member
    Posts: 2,434

    thats a good idea.
     

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