Faster Payment

Discussion in 'Business Operations' started by tiedeman, Feb 4, 2006.

  1. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I am going to try out something new this next billing cycle. I have purchased some additional envelopes (smaller ones compared to my double windowed invoice envelopes.

    I already put my address on the envelopes and sending them with the invoice, hoping that the customer will use them, for a faster payment.

    It doesn't hurt to try
     
  2. scagwildcat

    scagwildcat LawnSite Senior Member
    from nw. ct.
    Posts: 507

    they will pay when they feel like it, or NOT!!! nothing helps...........
     
  3. kppurn

    kppurn LawnSite Senior Member
    Posts: 426

    I've been doing that ever since I sent out my first batch of invoices five years ago. I don't think it will do a whole lot for you. If someone is irresponsible, a return envelope won't solve their problem.
     
  4. zturncutter

    zturncutter LawnSite Bronze Member
    Posts: 1,308

    We started doing that about 8 years ago. All it does is cuts into your profit and time. When we stopped doing it 2 or three years ago the slow pays were the only ones that complained. The only way to have good paying customers is to not put up with it and get rid of the slow pays.:gunsfirin
     
  5. T.E.

    T.E. LawnSite Senior Member
    Posts: 799

    Constant late payers should not be tolerated! I believe when selling the customer on our services, that payment on time should be included in the selling of the service. It needs to be stressed from the very first that late payers will not be tolerated. I have heard this principle spoke about in sales meetings, that it is a part of the sale, and when included as such it will cut down on the late payers. If they are late, they need to be called the next day as to why payment has not been received. I have found out if you ever let them get by with one late pay it opens the door to more late pays. JMO Later, Tony
     
  6. heather lawn sp

    heather lawn sp LawnSite Senior Member
    Posts: 681

    Put 'em at the bottom of the service list and keep looking for more work to replace them. If they are going to be late you can be late too.
     
  7. out4now

    out4now LawnSite Bronze Member
    from AZ
    Posts: 1,796

    I think that captured it perfectly. Who cares about the envelope? It could even be postage paid and they wouldn't send it out faster. You have at least three threads on late payers going so far, just start enforcement of policy if its that much of a problem. A small business can't float that much time. Are these businesses or residences jerking you around? If its a business doing the ol we pay only on the 1st and 15th thing, they are taking you for a free loan. Its extra time they have to keep their cash working elsewhere while not paying you.
     
  8. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    these are just strictly residentials that are doing it.

    Basically all the threads are tied in together resulting from the same people
     
  9. out4now

    out4now LawnSite Bronze Member
    from AZ
    Posts: 1,796

    I thought I read one that refered to businesses, ok. Well choice is pretty simple then, boot 'em. Suspend service, change the policy like in the other thread, charge a reinstatement fee and make it known that all future payments will have to be made cash in advance because they can still screw you with a charge back on a credit card. It's imply not worth the headache to you for a slow pay. 21 days on a resi. is nuts. If they are that slow then leave 'em for the guys you wnat to run out of business. They will smile at you, say the checks in the mail and all that when really what they saying loud and clear is I really don't care to pay my bills. Ever watch the Simpsons? Place a pic of Fat Tony to hang from the review mirror as a reminder from the pretzel episode. Paraphrasing Fat Tony, " my wife has been most adimant about the pretzel monies, where is da money, how come you are not getting the money now and so on and so forth, so ...if you please..DA money!!" :p

    fattony.gif
     
  10. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    nope, I have never had a business pay late, just the residential.

    There is one particular residential customer that just flat out lies about things or doesn't care about the bill. For example, I sent a notice out to some customers back in the summer about services, it wasn't until almost 4 weeks later that the customer asked me how can I was charing more for something. I told them, "Did you get the letter." And she was like, "Ya, I just haven't opened it yet." Or other times I have tried to charge her a late fee and she says that she didn't receive the bill, or she refuses to pay the bill because she never received it in time. The funny thing is, I asked her to see the envelope, and it was posted marked one day after I sent it.
     

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