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Contract Advice

Discussion in 'Lawn Mowing' started by soonernation, Apr 22, 2006.

  1. soonernation

    soonernation LawnSite Member
    from Okc OK
    Posts: 63

    I did a search and couldn't find what I was looking for. I have 15 contract customers all of which pay "semi" on time. But theres this new one that is 2 1/2 months behind on there bill. I haven't had this problem with anyone and don't know whether it is in my best interest to stop service until the bill is paid. How does that work. If I stop service and they let there lawn get out of control by the time they pay, I have to spend a lot more time getting it back in to shape. In the future, do I need to include this sort of thing my contracts? If you get your service cut off due to non payment, you have to pay for the labor it takes to get it back in to shape?
  2. StBalor

    StBalor LawnSite Senior Member
    Posts: 798

    Have you tried contacting the customer and letting them know they are late and you would like to stop by and pick up payment. If they still put you off stop services.
  3. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    NO!!!! do not STOP BY and pick up payment. it is the CUSTOMERS responsibility, to pay ON TIME. don't burn the extra fuel, or waste your time. simply stop service, till the check arrives in your box. then, u charge your regular mowing fee FOR EVERY week that was missed as a result of this.
  4. NEPSJay

    NEPSJay LawnSite Senior Member
    Posts: 492

    He cant do that Bobby, not a single one of his customers pay on time. He'll be out of part time work. What do YOU, bob, think is the real problem here??
  5. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    I don't like getting past 45 days .... that's a suspend service

    What I DO have in my billing outline is a 3 tier payment "plan"

    I bill on monthly ..... say I have a job I need $120 per month to service ....my invoicing goes out between the 1-5th of each month .....

    Payments recieved before the 20th is $120
    Payments before the 25th are $130
    Payments recieved 30days net are $145 .....

    With a suspend service on the following invoice
  6. NEPSJay

    NEPSJay LawnSite Senior Member
    Posts: 492

    wow, you will service customers that are up to 45 days in the bucket??
  7. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    the problem, i think, is that he even allowed them to get that far behind. he should have nipped it immediately. one day late, is late. action needs to be taken at this point, not 2.5 months later.
  8. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    CC companies have a letter in the mail the day your late the auto company finance dept have a letter the day your late.
    And at the top of the page it says tools click on odd debt and copy 1 of there letters as a "friendly reminder the day a customer is late.
  9. soonernation

    soonernation LawnSite Member
    from Okc OK
    Posts: 63

    Indeed I should have handled this sooner. I have reworded my contracts so that I can cover my a%$ a little better in the future. I will be calling the customer tomorrow to find out why they don't fell it necessary to pay me and that my services will stop until the amount is paid in full. They will pay for any extra it will take to get the yard back to the impecable shape it's in. The reason I have been somewhat reluctant to get aggressive is this lady is the president of the home owners association and I wanted to do this tastefully so as not to pi$$ her off and have her start bad mouthing my company all over the neiborhood. I understand that usually the yard guy is somewhere between paying the storage bill and the pooper scooper guy when it comes to priority but come on. Thanks for all the advice.

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