Collecting Money Whats your approach?

Discussion in 'Pesticide & Herbicide Application' started by humble1, Jan 31, 2014.

  1. phasthound

    phasthound LawnSite Platinum Member
    Posts: 4,564

    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.
     
  2. Service 1st Lawn Care

    Service 1st Lawn Care LawnSite Senior Member
    Posts: 643

    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.
     
  3. Ric

    Ric LawnSite Fanatic
    Posts: 11,946

    .

    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.

    .
     
  4. humble1

    humble1 LawnSite Silver Member
    from MA
    Posts: 2,495

    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...
     
  5. humble1

    humble1 LawnSite Silver Member
    from MA
    Posts: 2,495

    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.
     
  6. ted putnam

    ted putnam LawnSite Platinum Member
    Posts: 4,533


    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...
     
  7. Ric

    Ric LawnSite Fanatic
    Posts: 11,946

    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.

    .
     
  8. PenningsLandscaping

    PenningsLandscaping LawnSite Bronze Member
    Posts: 1,855

    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: Feb 1, 2014
  9. humble1

    humble1 LawnSite Silver Member
    from MA
    Posts: 2,495

     
  10. gregory

    gregory LawnSite Bronze Member
    Posts: 1,068

    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...
     
    Last edited: Feb 1, 2014

Share This Page