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Agreements & Late Fees

HydroRI

LawnSite Member
Location
Rhode Island
These questions are based on lawn care programs including weed & Pest control.

I am a owner operator of my lawn care business with no employees. I tell my residential customers that they have no obligation. If they are not happy with my service I will do everything I can to make it right. But if there still not happy the can cancel service at any time. They pay me after each application and I allow 30 days for payment. This year I had a couple of customers go over the 30 days. Right now I still have money owed since October. I never thought about what I would do besides not show up for the next application until I get paid. Does anyone charge late fees or interest? I have already sent a letter stating payment is now overdue. Since I still have not received payment it is making me think I might need to make changes.

My other question is I did a fert program for a state hospital this year. I outlined the program and they told me to go ahead and do it and they gave me a purchase Order # for the first application. I did the Early Spring and Late Spring treatment. When summer came around they did not give me a PO because they said from lack of rain they did not want the summer treatment because the lawn was burning up. When late summer arrived they said they were having money allocation problems for grounds keeping. SAME EXCUSE FOR FALL.

Would a contract have avoided the skipped treatments and would they of had to pay me for all 5 treatments regardless? What would be the correct way for me to do business with this hospital and other commercial accounts in the future? This was my first year dealing with commercial grounds so any feedback would be appreciated.
 

ArizPestWeed

LawnSite Bronze Member
Location
On the Toilet
Well , for the first question , I do the next service and the third , too.
I let their bill build up .
If u cancel , u will lose the client , maybe .
I make 'em feel guilty by going to thier door when they are home .
If u have time , keep on doing the service , ..
I can say that I'm way ahead doing this than if I cancelled because of 1 month late .
Late fee , my invoices state $25 late fee if more than 15 days late .
It's illegal in Az , use it as a scare tatic amd it works for most , but not all .
Thouse who pay the late fee , I apply it as a credit
 
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