Customers that don’t pay until after service is done

Discussion in 'Business Operations' started by Cmonstihl, Oct 7, 2019.

  1. paulsgrass

    paulsgrass LawnSite Member
    Messages: 243

    I hate that. I have a couple like that. Once they pay me its good bye.
  2. BigJlittleC

    BigJlittleC LawnSite Fanatic
    from Chicago
    Messages: 6,451

    I hear that a lot on here but never have that problem in real life. Infact when I started my business I needed money. So I made every sign up pay for the last 3 cuts up front. I have changed that policy since then now you either sign up on my terms or I move on to the next. They need me more then I need them on my list.
  3. StearnScape

    StearnScape LawnSite Member
    Messages: 30

    I have some of my customers pay by mobile phone Venmo, PayPal etc...Sometimes they right after job is done, but ironically being that the service is so convenient people take their time and usually pay later that night when i already have sent a second reminder. Also Venmo takes 1% from total....I always include the 1% when I bid my Venmo jobs. Cash in hand is always better. I dont want to hijack this thread, but what are other peoples experiences in mobile bill pay to your company? Is their other apps I can use that dont charge?Pros and Cons.
  4. BigJlittleC

    BigJlittleC LawnSite Fanatic
    from Chicago
    Messages: 6,451

    Your running a business. There is no free way to accept credit/debit cards. Lots of ways to deal with the cost. I charge a $3 convenience fee to all card charges that are not on file. Plus I have the charge figured into my overhead and it's a nice write off come tax time.

    Don't look at the cost as a bad thing. I assume that's how I'm paid and when I get cash or check the little bit extra is a bonus.
  5. Cam15

    Cam15 LawnSite Silver Member
    Messages: 2,908

    I had a customer that was 6 mows behind, but I knew she was good for it. Got paid today it turned out her son had been in the hospital.
  6. Cam15

    Cam15 LawnSite Silver Member
    Messages: 2,908

    Venmo doesn't charge anything unless you want it that day.
  7. LawnSite Fanatic
    Messages: 6,088

    You need to relax man !
    It's just money.

    I bill out residential and few commercials monthly to cover expenses. The rest I bill at end of season. And all new property gets billed monthly.
  8. Mumblingboutmowers

    Mumblingboutmowers LawnSite Senior Member
    Messages: 935

    I have a similar deal right now. A new customer I acquired this year has been in the hospital for quite a while and is not in good shape from what I hear. The last 2 cuts went unpaid due to this. I went and cut it again today anyway as I figure it's the last cut for it for the year anyway. I am hoping the guy pulls through and I get paid, but if not I figure it doesn't hurt to do some good deeds now and then. I should've gotten his address, so I don't even know where to send a bill in hopes that family might pay it. (no mailbox at house and the guy lived alone).
  9. Mumblingboutmowers

    Mumblingboutmowers LawnSite Senior Member
    Messages: 935

    No proof but it makes sense to me. Lawn guys unfortunately fall into the same category as contractors and in general people are untrusting of contractors unless they know them and they have been in business for a while. I see nothing wrong with asking for prepayment if you are an established business, but being an "unknown business" I think a person would lose work demanding payment up front.
  10. kemco

    kemco LawnSite Silver Member
    Messages: 2,537

    I've had a few customers die over the years owing for a cut or two. Do I go after the estate. Nah. #1 id personally just feel bad doing it #2 would cost me more in time than the money they owe. Now on the few larger installs we always end up doing each year where we are talking multiple thousands of dollars yes.. but so far that has not happened.

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