Am I an LCO or a Bank?

Discussion in 'Business Operations' started by haybaler, Mar 25, 2008.

  1. haybaler

    haybaler LawnSite Senior Member
    from ma
    Posts: 511

    why is it that customers think they can pay there lawn guy whenever they feel like it? and then they pay the bill in payments without even asking if it's alright. No other company's run like this. I'm not a bank or credit card company. I'm fed up and i'm going to lay down the law. you have 3 options. pay by credit card, pay within 10 days, or pay after 25 days and pay the interest charges. anything other and you get a black mark on your credit score.
  2. Stillwater

    Stillwater LawnSite Platinum Member
    Posts: 4,834

    why are you telling us and not your customer
  3. Lawn-Sharks

    Lawn-Sharks LawnSite Senior Member
    Posts: 912

    Customer are weird like that..... i havent had that problem yet but my other LCO's friends have. Hope it all works out for ya!
  4. haybaler

    haybaler LawnSite Senior Member
    from ma
    Posts: 511

    i'm just venting, and giving people starting out a heads up.
  5. J&R Landscaping

    J&R Landscaping LawnSite Fanatic
    Posts: 5,096

    I run into that problem sometimes. Yes it sucks but my policies were changed for this year. Strict late fee's as outlined in my contract if I don't get my check or a phone call by the 15th.
  6. Runner

    Runner LawnSite Fanatic
    Posts: 13,494

    There is an old saying that I have used with people for years. I tell them this.
    "Sir (or Maam), My bank and I have an agreement that I continue to honor. They don't mow any lawns, and I don't loan any money."
  7. jimmyburg

    jimmyburg LawnSite Senior Member
    Posts: 701

    Get paid when your finished, i do. they leave a check or cash
  8. Flow Control

    Flow Control LawnSite Bronze Member
    Posts: 1,267

    DUH....... We are all Banks. I am still chasing money from last year, enough to buy two trucks. But the BIG catch is, even though people string us out FOR some dumb reason our creditors expect their money on time. CRAZY... But we all bow and pay our bills on time and WAIT for others to do the right thing.

    This year we are trying new software in hopes of less money "slipping through the cracks" hoping that it works.
  9. IN2MOWN

    IN2MOWN LawnSite Platinum Member
    Posts: 4,993

    I did the same thing. I had due dates on my invoices but this year I added something to the bottom of the invoice stating when it was due and what the consequences are if they are late.

    I also included all that in my spring letter I sent out last month.

    I give my customers 15 days from the date of the invoice to get a check to me. I think that is more then fair.
  10. pderenzo

    pderenzo LawnSite Member
    Posts: 8

    You'll always find slow paying customers. People generally don't know how to budget their funds past one day to another. You have to make up your mind when your in business. You are either a credit giving agency or not.

    My policy has always been pay as you go. Payment do on completion of any job. If the client is out of town then it is in advance for the month.

    Customers do have problems that come up some times, you treat each customer individually based on your experience with them. I offer credit to some, but they have been with me for a while and have a good relationship with me. Customers that intentionally fail to provide payment after several attempts to collect the money due with no explanation or contact, before there next scheduled visit is dropped (I'm not in the collection business).

    Anything under contract also has credit options with a specific payment outlined in their agreement.

    My best advise would be to avoid offering credit as much as possible. As it is the profit margin on lawn care is somewhat questionable at times.

    Blessing to you all

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