Customers who pay late

Discussion in 'Lawn Mowing' started by AuburnGuy, Jul 18, 2004.

  1. AuburnGuy

    AuburnGuy LawnSite Senior Member
    Posts: 279

    I send out invoices on the first and they are due on the 15th. The last couple of months i have had to call a few people to make sure they got the invoice and let them know it was past due. In my contract i have a $25 late fee. I cant decide if i should just put it on thier bill or call them again and let them know if it's late again they will be charged. The last invoices had the due date highlighted so it should not have been overlooked. What have your experiences been with this?
    thanks
     
  2. ince8728

    ince8728 LawnSite Member
    Posts: 249

    I work for a guy who charges $30 per month after the bill is late, he will send out a notice that the bill is late each month for 3 months & on the third one he basically says that the collection agency will be at their door the next day.
     
  3. MOJO111

    MOJO111 LawnSite Member
    Posts: 148

    Put a notice of late payment surcharge on every invoice as a standard format. that way they always see it on each bill and its a gentle reminder to pay by due date.:D
     
  4. MiracleMan

    MiracleMan LawnSite Member
    Posts: 52

    We have a due date on each invoice and a notice that there is a 5% Late/Service charge if RECEIVED after that date. We add the fee to the next months billing. Only about 5% of our clients are ever late anymore. Hmmmm, ... I see linkage here ...
     
  5. HOOLIE

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    If the late fee is on the contract, you should enforce it on the following bill. I only call customers who are "habitual offenders"

    For some reason, doctors and other medical professionals are horrible with due dates.
     
  6. 42homers

    42homers LawnSite Member
    Posts: 102

    Those that have..........hold on to it longer than those that don't.

    I have one of, if not the wealthiest, people in town owing me for 3 months. She's had her invoice for at least 17 or 18 days now and still no payment.

    Other side of the coin is those that don't have squat but chase you down to pay you cause they can't stand owing a bill.

    Rich folks could care less about late fees. they somehow think they are above them.
     
  7. chuckers

    chuckers LawnSite Senior Member
    Posts: 657

    42 homers has a great point i think that is the same way around here i think thats what keeps the not so wealthy going is they never get behind on bills
     
  8. mbricker

    mbricker LawnSite Senior Member
    Posts: 505

    Psychiatrists and dentists, that's who I can always depend on to pay late. And there was one dentist whose staff would call about 7:15 in the morning and say "there's a limb down on the parking area, would you get over here and remove it before our first patients show up?" And then consistently be 60 days behind on paying. And his wife who wrote the checks, sent me a nasty note saying they absolutely weren't paying any late charges.

    Don't work for the jerk anymore.
     
  9. Precision

    Precision LawnSite Silver Member
    Posts: 2,995

    add the late fee to the bill. it can always be removed for the first offense if they complain. But after that tough luck.

    I am not so sure, but late fees should be lienable just like the rest of the bill.

    doctors and lawyers are notoriously bad tippers, but it is the law of averages. I have never had much of a problem in that arena with 12+ years in Food service. So I try not to judge by the cover and certainly stay on top of people and enforce preventative clauses.

    Suspending service also should work like a charm. I would never go 60 days. That is crazy. I also get paid in advance by 1 month so that gives me a cushion.
     
  10. ProStreetCamaro

    ProStreetCamaro LawnSite Platinum Member
    Posts: 4,155

    HAHA your a LAWN GUY. Just like me. If I were to charge a late fee EVERY single person would quite on the spot. Why wouldnt they? There are 5 million other guys out there that will do the same job for the same pay and NOT charge a late fee. You guys kill me with this late fee BS. Yes it would be nice if I could charge a late fee but I cant. Heck if I wanted to go up $1 per cut to cover higher gas or what not 1/2 of my 70 customers would quite.
     

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