I don't post much here anymore but dammit, this is important.
We need to make this an industry-wide practice and stop giving con-artists, scammers, and service thieves the upper hand. This is how we, as an industry, turn the tables on bad customers permanently and start increasing our profits.
Most LCOs do not take deposits, even ones who have been in business for a long time. It is common practice in this industry to sign someone up, mow the lawn for a month or do a landscaping job, then wait even longer to get paid. For years, I have seen thread after thread on this board complaining about non-payers, slow payers, and chasing money. It's ridiculous and it needs to stop. It does not need to be that way. Simply start taking deposits.
I take deposits from all new customers. For mowing, 4 cuts plus tax in advance, refunded or applied to balance after 12 months of timely payments or upon cancellation. New landscaping customers pay 50% up front for the job and 50% upon completion.
There is no doubt in my mind that this slows growth and account acquisition, but I got burned too many times and I was sick of waiting to get paid. If you want to avoid slow payers, non payers, and other trouble customers, this is how you do it.
Dave Thomas, founder of Wendy's, said this and it always stuck in my head:
"Don't even talk to people who can't afford your product or service."
Now, while I don't think this should be taken literally, it applies perfectly to our industry. Customers who do not intend to pay will run from you when they find out about a deposit. Good riddance, we don't need you as a customer. If you are professional and present yourself as such, good customers who want dependable service have ZERO problem paying a deposit.
As many of you know, there is little recourse for the service business owner when it comes to theft of services. Even here in Ohio, where there IS a theft of services law, good luck getting it enforced.
Stop letting thieves take you for a ride.
START TAKING DEPOSITS ASAP. Tell other LCOs you know to TAKE DEPOSITS. Tell other service business owners you know to TAKE DEPOSITS.
Let's make this an industry wide practice.
We need to make this an industry-wide practice and stop giving con-artists, scammers, and service thieves the upper hand. This is how we, as an industry, turn the tables on bad customers permanently and start increasing our profits.
Most LCOs do not take deposits, even ones who have been in business for a long time. It is common practice in this industry to sign someone up, mow the lawn for a month or do a landscaping job, then wait even longer to get paid. For years, I have seen thread after thread on this board complaining about non-payers, slow payers, and chasing money. It's ridiculous and it needs to stop. It does not need to be that way. Simply start taking deposits.
I take deposits from all new customers. For mowing, 4 cuts plus tax in advance, refunded or applied to balance after 12 months of timely payments or upon cancellation. New landscaping customers pay 50% up front for the job and 50% upon completion.
There is no doubt in my mind that this slows growth and account acquisition, but I got burned too many times and I was sick of waiting to get paid. If you want to avoid slow payers, non payers, and other trouble customers, this is how you do it.
Dave Thomas, founder of Wendy's, said this and it always stuck in my head:
"Don't even talk to people who can't afford your product or service."
Now, while I don't think this should be taken literally, it applies perfectly to our industry. Customers who do not intend to pay will run from you when they find out about a deposit. Good riddance, we don't need you as a customer. If you are professional and present yourself as such, good customers who want dependable service have ZERO problem paying a deposit.
As many of you know, there is little recourse for the service business owner when it comes to theft of services. Even here in Ohio, where there IS a theft of services law, good luck getting it enforced.
Stop letting thieves take you for a ride.
START TAKING DEPOSITS ASAP. Tell other LCOs you know to TAKE DEPOSITS. Tell other service business owners you know to TAKE DEPOSITS.
Let's make this an industry wide practice.
