Collection problems???

Discussion in 'Business Operations' started by lawnman_scott, Feb 12, 2001.

  1. Mike Nelson

    Mike Nelson LawnSite Senior Member
    Posts: 416


    In our sealcoating business we get 50 percent before starting the job(commercial only)and the rest upon completion or within two weeks.The residential side we just collect when we finesh.(being most jobs are under $250.)
    For guys doing municipal work or big jobs there is a company that will buy your invoices for a small percentage and you get your money right away.
    Lots of luck to you all
    P.S.We could always do what Tony Soprano does to collect his money :D
     
  2. Rex Mann

    Rex Mann LawnSite Senior Member
    Posts: 621

    When our sales people meet with a client, they tell them we get 50% when we start and the balance upon completion. That is standard in our area. We used to take money down to "hold their place in line". But, if you said you'd be there in two weeks and it rained for two weeks they felt they had a right to yell and scream at you because you had their money.

    We have lost some clients after a verbal "go-ahead". What could I do to stop this? I do not want to take money down to "hold their place in line" any other ideas?

    Rex
     
  3. diginahole

    diginahole LawnSite Member
    Posts: 249

    I don't know a better way than having a few of their dollars to keep a signed client from renegging on a contract. In my parts though it doesn't EVER rain for 2 weeks so getting that far behind isn't so much of a concern. We do however often get behind because of changes made to contracts that we are currently working on. Keeping the queved clients informed of schedule delays makes them happy. If you keep them in the dark about why you are not there on time they will rightly be dissapointed with you. "Hello, Mr Jones, it's Blair calling, we are still working at Mrs. Smiths property because she has requested a few changes that will put us back by 2 days. We will be there on Wednesday to begin your project and once we start things will certainly progress rapidly. Once we start on your job we will be there until you are completely satisfied just as Mrs Smith is sure to be tomorrow. Well thanks for understanding and I look forward to seeing you bright and early Wednesday morning." Customers love this kind of respect and will find it hard to say "no, I don't want you doing my job if you can't start today."

    Blair Deutekom

    [Edited by diginahole on 02-12-2001 at 10:37 PM]
     
  4. Rex Mann

    Rex Mann LawnSite Senior Member
    Posts: 621

    We pride ourselves in keeping our clients "up-to-speed" on not only when they can expect us but also what's going on during their entire project.

    Maybe we will have to start taking some dollars at the time of commitment. I just realized-in their minds it's not a commitment because they have nothing to lose. Duh!!!!!

    Sometimes it takes a while for the light to come on.

    Thanks diginahole.

    Rex
     

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