Slow Payers this Season

Discussion in 'Business Operations' started by Atlantic Lawn, Mar 8, 2008.

  1. Atlantic Lawn

    Atlantic Lawn LawnSite Senior Member
    Male, from Outer Banks NC
    Posts: 940

    We know times will be tough for some this year. How far behind do you let them get before you suspend service? I've had people get behind, I even had one customer who was over two months behind and we stopped service. I saw another guy cutting his property and told him the guy wasn't paying us and he told me he was paid the day he did the work ! Just how far behind do you let them get and how do You stay on good terms during the collection process ?
     
  2. landscaper22

    landscaper22 LawnSite Senior Member
    Posts: 829

    It varies for me. I have had a couple get more than two months behind. One was 3 months behind. I try to look at each circumstance individually. I only get mad and impatient if I feel they are trying to shaft me. If they are good customers that are just having a rough time, I will be a little tolerant and work something out. Of course I can't let everyone get slack or I will have problems. But if I have had a customer for 2-3 years and run into an occasional problem, I try to cut them some slack. If I work with them they usually pay. If you piss them off to quickly, you may never see your money.
    If I stat to see a pattern with the same customer, once they have finally paid me what I am owed, I ask that they pay for each visit at the time of service. They have to leave a check for me, or I will not service the property. Or I may let them send me a check after the one visit, but they can no longer pay on a monthly basis. It is like a final effort on my part so that I don't have to drop them. Seems to work fairly well. This is how I handle it.
     
  3. mgugliotti

    mgugliotti Inactive
    Posts: 58

    Hey guys-
    You are right it all depends on your business, and how badly you need the money. The thing that kills me is that he didn't pay you and hired some one else! This happens all too often and it is the biggest drain on our industry- why should you get beat out of money only for the guy to hire some one else? We need to stand together as an industry and stop this from happening, it is ruining our industry.
    I got fed up with this happening to me and my contractor friends- so I started Solidcontract.com. I have a forum on lawnsite.com check it out if you want to change the way we do business and protect ourselves as contractors.
    I'm glad you made an effort to take the time and tell that other contractor you didn't get paid! We need more people like you in the industry! Best of Luck!
    Matt
    solidcontract.com
     

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