Late Payer

Discussion in 'Business Operations' started by Keegan, Feb 20, 2008.

  1. Keegan

    Keegan LawnSite Senior Member
    from CT
    Posts: 606

    I just received a payment from a customer of only one year. It took him 3 months to pay for his fall clean-up. I contacted him a few times but got no return calls.

    I think I'm going to drop him. Do I even tell him I don't want you anymore or just ignore him?

    He's a lawyer and on the town committee so he obviously thinks he's better than everyone else. I guess this is my way of flippin him the bird.
     
  2. greenazkeeper

    greenazkeeper LawnSite Member
    Posts: 15

    2 people that I never do business with. Lawyers and Engineers. Lawyers because they have this attitude as you describe above. They think they are better than everyone else and that they can skew the law in any way to get out of anything. Engineers cause they will nit pick and complain about every little microscopic detail.

    My suggestion, get rid of this loser.
     
  3. Kortas

    Kortas LawnSite Member
    from Arizona
    Posts: 40

    I second that motion. But I'm Engineers and Lawyers, in that order. They're like meth, "not even once".

    I would suggest credit cards in the future myself. I don't worry about slow payers, ever. I get my money before doing the job, or I don't go.
     
  4. pixr99

    pixr99 LawnSite Member
    Posts: 12

    Hey, cut engineers some slack... we can't turn it off ;-)
     
  5. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    There are indeed certain type of Busineess that pay is diffrent than most people are used to,

    When I was a Teacher we got paid once a month. that's that, mainly on the 15th.

    the home builders stay 3 months behind at all times, <--- or most of them do.

    ths simple soultion is to have a clause on your invoice that states, pay this ammount before the 10th, pay this ammount after the 10th, pay this. any payment NOT recived By the 30th, is subject to intrest of XXX ammount.

    TRUST ME IT WORKS
     
  6. Flow Control

    Flow Control LawnSite Bronze Member
    Posts: 1,267

    We started changing our proposals to builders to the following. If we value the job at a fair price of $10 then we invoice $12.5, but if the bill is paid within 30days then the price is $10. So far it has worked extremely well. For example we did a parade of homes where our little job at each house was 2200 but we billed 2800 and if paid within 2 weeks then they owed the 2200. Worked like a charm for 5 different builders.
     
  7. grass-scapes

    grass-scapes LawnSite Bronze Member
    Posts: 1,552


    The billing you describe is, for example 2% 10 net 30
    you can change the percentage as you see fit. The above means if paid in 10 days or less, they get a 2% discount, otherwise total amount due in 30
     
  8. Loy's Home Services  LLC

    Loy's Home Services LLC LawnSite Member
    Posts: 186

    My worst customer on a res. account is a local news anchor.from KMBC@9
     
  9. Landrus2

    Landrus2 LawnSite Platinum Member
    Posts: 4,833

    We have been in this business. for to long and we have costumers from the very beginning, that have been with us and some have fallen behind, some of them to behind we are confident that they will pay. its part of the business:waving:
     
  10. SpruceLandscape

    SpruceLandscape LawnSite Senior Member
    from ohio
    Posts: 502

    I've had regular customers (especially ones on fixed incomes) that have fallen behind at times (especially during the holidays). Most of them are good reliable clients that in the end will always pay up and will understand or even request that we discontinue services until they are back on their feet. I understand how money can come and go these days and for regular customers can make an exception here and there. That being said, I have also been burned by doing this, but mostly with customers who I THOUGHT would be regular but turned out to be deadbeats only wanting a few services and then never paying, returning phone calls, or keeping to their agreements. You can spend your time chasing after them if you want, or, just do like I do. If after 60 days there is no payment in full, send them to collections and wash your hands of it. I have too many things going on to be sitting in driveways, calling multiple times a day, or spending who knows what on wasted postage for letters that will be torn up or ignored. I send the original invoice, then a statement, then a collections warning letter and phone call. In that order, then its off to collections they go...
     

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