Getting Paid

Discussion in 'Business Operations' started by Fwilamosky, Oct 23, 2012.

  1. Fwilamosky

    Fwilamosky LawnSite Senior Member
    Posts: 280

    So I've have a pretty good year this far but I have been fed up with a few of my residential clients not paying in a responsible manner. I want to know what other LCOs are doing to encourage clients to pay on time and if they offer discounts to paying earlier and or penalties for paying to late? I was thinking about having all clients next sign a service agreement saying they will be penalized for paying late
     
  2. Nate'sLawnCare

    Nate'sLawnCare LawnSite Bronze Member
    Posts: 1,001

    Just send the late ones an updated invoice with a 15% additional charge.
     
  3. orangemower

    orangemower LawnSite Silver Member
    from pa
    Posts: 2,773

    Yep, and start looking for new customers. When they read the invoice they will most likely drop your service.
     
  4. jsslawncare

    jsslawncare LawnSite Bronze Member
    Posts: 1,674

    Deal with them this year, and replace them next year.
     
  5. TNGrassCutter

    TNGrassCutter LawnSite Bronze Member
    Posts: 1,321

    Just got paid today....
    Posted via Mobile Device
     
  6. corey4671

    corey4671 LawnSite Silver Member
    Posts: 2,931

    After getting hung with a few bums in recent years, I decided this year I was not going to tolerate slow payers. Two weeks into the month, if the previous month's invoice wasn't paid, I stopped service. Had a new customer that tried me in July. Kept sending him reminders and he never would respond. After I serviced the lawn the second time in August, I sent him a message saying that this would be his last service until the July invoice was paid. Low and behold, next day he pays up. Get through August, send invoice and once again start sending reminders. No reply. After the second visit I send another message saying this is your last service. No reply. Called him asking for payment. Would hang up on me. Ok. kept Sending reminders. No response. Called again. Hang up. Left invoice stuck in front door. One more call, again hung up. Decided I'd given him every chance. Had all the makings for another bum that had hung me. Left him a little reminder that he couldn't miss....

    pay up.jpg
     
  7. Chilehead

    Chilehead LawnSite Bronze Member
    Male, from Stockbridge, GA
    Posts: 1,898

    Option 1: Send each of them a demand letter via certified mail. Indicate that you require payment in full in the form of credit card or bank check only, due 10 days from the date of the letter. Also indicate that failure to pay will result in litigation, and if you win that they will have to pay any court costs.
    Option 2: Give me your clients' contact info and I'll collect for 50% of the amount owed.
     
  8. Premier GreenScape

    Premier GreenScape LawnSite Member
    Posts: 33

    I have a client that is a collections/recovery agent if I have someone that is past due and has refused to respond I will call him.
     
  9. ptjackson

    ptjackson LawnSite Member
    Posts: 211

    How many people here use a service that just auto deducts from the clients account? Is it worth the fees to do (subscription style)?
     
  10. caseysmowing

    caseysmowing LawnSite Bronze Member
    Posts: 1,881

    Hahaha Love it!! Did he pay after that?? Or call the cops?
     

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