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Reached that Point

Discussion in 'Lawn Mowing' started by tiedeman, Feb 4, 2006.

  1. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I feel that I have finally reached that boiling point of sticking it to customers. In the last two months this is what has happened, what I did, and what i am thinking about doing.

    Problem: Snow removal customer changed snow removal height up 3".
    Solution: I dropped the customer. This is the second time that I have had to deal with the customer because of price

    Problem: Late payment from customers. Normally in the past I would look the other way if they were a week behind on payment.
    Soon to be Solution: One of two things; either the customers will be billed by credit card from now on, or services will just stop all together without notice (that is what is actually stated in the contract but I really have never followed this with strict rules)

    I just have come to the point where I want to get paid, I want to pay my bills, and I am going to start to be really super picky about what customes I accept and keep
  2. J Hisch

    J Hisch LawnSite Senior Member
    Posts: 952

    90% of our customers pay and pay well, most residental we try to collect check at time of service. Just like anyone else in service industry. However we do have some who pay monthly off a statement, like i said most pay well. I would just tell you non payers that if they dont pay on time you will bill their credit card and have them sign acknowledging and authorizing the card transaction. Good luck. I tought I read a while back you were leaving the business, did I miss a thread?
  3. kc2006

    kc2006 LawnSite Silver Member
    Posts: 2,442

    Thats not really sticking it to the customer. Thats what should be done. You have to pay your bills on time right? Well they should too. Good job, keep them in check!
  4. naturescape

    naturescape LawnSite Bronze Member
    Posts: 1,694

    It seems like a week behind on payment is not very late. I'd say after 2 weeks or so, impose a late fee (make sure the fee is described in the contract or the law won't allow for a large fee on a small balance -- my late fee is $15 regardless of the balance). Then pile on the late fees, it's up to you when to drop the customer, but I'd give them at least a couple weeks grace period past the due date.
  5. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    LOL...you're getting mean in your old age Troy:p
  6. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,841

    I feel you, tiedeman. I reached that point about 6 years ago. That's why most of my customers are now on AutoPay. Now I always get paid on time.

    Honestly, I don't see how the rest do it. I couldn't have survived in business or with my own personal finances had I not done something about our accounts receivables problem.
  7. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    I believe the mafia has a system of collecting late payments that works really well. You should look into there payment collection techniques and there interest rates for late payers. Email me and I'll fill you in on how to find your local collection agency :eek:
  8. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    my biggest fear is that I would lose a lot of larger account customers because I am demanding payment sooner than before and I am not be as leniant. I mean, sure they eventually pay, anywhere from 1 to 3 weeks later. But that is cr@p that I have to wait that long. I give them 21 days to pay their bills. That is pretty good I feel.

    Perhaps this hard line approach will lose some customers, but maybe it will weed out the bad ones as well

    CHRIS MELROSE LawnSite Member
    from MIDWEST
    Posts: 170

    Clients that do not pay are considered "bad business". My grandfather always told me...."No business is better than bad business".
  10. amar

    amar LawnSite Member
    Posts: 203

    21 days thats it? You must not cut for any government agencies, commercial properties (larger ones) Definitely no fast food chains.

    Your located on Earth? If your in SE MI Ill take them off your hands.

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