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I would like to know what you would do in this case. We have had some customer's that still do not pay after a month or 4 cut's but we have had them for several year's. What do you suggest.

Thank you
GLS
 

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get them to pre-pay you
tell them its your policy that if they don't pay ontime for say umm 2 bills... THey now have to pre-pay you

Or at beginning of season when getting agreements put together add in a part about late payments...for instance you'l add a 2%fee for late payment something like that.
 

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How are you billing them? By the cut?
Or are you billing them after a month of service, and they still aren't paying you for another month?

If you're billing by the cut, then maybe paying after each and every cut isn't convenient for them. Some people may choose to handle all their bills only once a month.

SO your first step is to make it convenient for them to pay.

If you aren't already doing this.... bill them once a month at the end of the month, get a red stamp made up at Staples or business supply store that says, "Payment due within 10 days", and see how that works out for you.

Let us know how frequently you are billing them. From the way I read your post, I'm assuming you are billing them after each cut?
 

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i use bubbas collection service. this guy in 6/6, used to play semi pro football in florida. and he dont care if he goes to jail. he gets 50% of the collection. dont know if he will travel to rhode island though, thats a long bike ride for him.
 

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Originally posted by GSL 23
I would like to know what you would do in this case. We have had some customer's that still do not pay after a month or 4 cut's but we have had them for several year's. What do you suggest.

Thank you
GLS
GSL 23,

I say if you can afford it, keep them. Some times things happen to us in life that we can't control.
I have been mowing for about 9 years now. I can think of two customers, right off the top of my head that I charge weekly but sometimes they will go three or four weeks with-out being home. One of my current customers who I have had for about seven years holds the record at six weeks with out paying.
Be patient with them, in the long run, this little convenience to them will set your services apart from the competition.
Craig
 

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I'm with Craig on that point. I have a couple of customers that are hard to catch at home. They've always been good about paying and I know they will pay. One guy owes me for 5 weeks, and a woman that owes me for 6. I'm not worried about them though. I just sent out end of the month invoices and included their accounts with them even though they normally pay every week. If they don't respond to those by sending in their payment, or call to make arrangements to pay me personally; then we have a problem that will be delt with accordingly.
 

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Give them a call and ask them whats going on. Then tel them that your adding a late fee starting the next month. I think by law the most you can add a month, is 2%.
 

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This is a message on all outging invoices from now on.

Payment Due Upon Receipt. Any amounts that are 30 days or more overdue from billing date are subject to 2.0% monthly interest charge. Thank you.
Here is the letter we sent out to all the customers to start this. Feel free to use it if you like, - I hope it helps.

Dear Valued Customer,


First of all, we would like to thank you for your patronage that assists us in assuring that we can continue to provide our high quality and standards of work at reasonable rates. However, due to the influx in overdue accounts receivable, it is necessary that we begin instilling an interest charge onto any amounts that are 30 days or more overdue. All accounts and amounts that are not paid within 30 days of billing date will be charged 2.0% interest each month for all amounts overdue. This policy will take effect 30 days after mailing date of this notice. We sincerely appreciate your business and cooperation on this matter. Thank you for your patronage, and if we can be of further assistance or if there are any questions regarding this matter, please feel free to give us a call at 730-7135. Once again, thank you.
 

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Not tryin to be a smart a##, but because of the nature of the note, I thought I might say....

1. "Rates" aren't reasonable, but fair might work
2. "Instill" means to implant or infuse.
3. Change "assure" to ensure
4. You thanked them for their patronage twice. Patronage means: special support:right to distribute jobs.
 

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So you don't think that "reasonable rates" is a definitive term? I chose the word instill under the intentions of the definiotion "To impart something gradually" whether it is to impress ideas, principles, or teachings. The gradually fits in because of the grace period in which it has to take affect.
As far as changing "Assure" to "ensure", well, that is just a matter of taste, I guess, as they both mean. "To make something certain". ex.: "Proper planning assures that the job will be done right." If I was to use "ensure", it would sound a bit awkward in saying "... that assists us in ensuring" as opposed to "... that assists us in assuring".
As far as the thanking them for their patronage (def. "The REGULAR purchasing of goods from a particular store or business.") I should have used the word "Again", before thank you for your patronage. Even though that IS a bit redundant, atleast by saying "again", they know that they (their patronage)is appreciated. Anyway, any changes anyone would like to make,... you are more than welcome, and I CERtainly appreciate the input! ;)
 

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Uh,

1. Rates cannot be reasonable, as they cannot reason.

2. You instill INTO something, like principles into a child. An interest charge is not instilled ONTO an amount.

3. Ill give you the assured thing, because that sentence falls apart again when you state you have more than one standard. Are you double standard organization?

4. Patronage means what? What goods are they purchasing?

Look, I didn't make the rules. I'd love to say it's a great piece of work, but the truth is before you send that note out, it needs some serious editing. Your directing customers attention specifically to the matter of money. It is serious to you and them.

Your welcome.
 

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O.k., let's say "added to", instead of instilled. As far as rates go, I'm sticking with the adjective reasonable. No, the prices can't reason, but we can. Reasonable rates has been used for more years than I have been around, and I think it works. Reasonable is an adjective that can EASILY describe a price,- meaning "within reason".
The term patronage also applies to businesses that provide services. A reataurant and hotel, for instance are service businesses. THEY can have continued patronage. A hotel has patrons as customers or "guests". I always thought about the "instill" thing, though from the moment I wrote it, I wasn't TOTALLY comfortable with it. lol
 

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Failure to pay could cause a late fee to be incurred. Or the fee could be 'included' in the amount due on the next billing cycle. Just some ideas so you can nix 'instill'. I think I might also tie this policy change to 'continuing to improve our company's management so that we may continue to provide you with the professional level of service you have come to expect from us.' I think that it helps to link this to a benefit for the customer. The idea is to inspire compliance. Otherwise, it may be taken in a less positive light.
 

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I started a late fee last month. Just a note on the bill. Here's how it shows up this month:

Subtotal: $740.00
Sales Tax: $48.10
Total: $788.10
Arrears: $1,717.00
late fee: $34.34
Total: $2,505.10

Accounts not paid within 30 days of date due are charged a 2%late fee

In Microsoft Excel the decimal points line up. But you get the idea.
The due date is the 1st of the month.

I had a man from purchasing tell me that today's buzzword is to offer a 2% "discount" when paid on time.
(Of course that extra 2% is rolled into the original bill so they're getting nothing.)

Thanks but no thanks. I'm sticking with "late fee"

My wife's debugging her program to automatically add late fees to the bill when needed. It already brings the arrearages forward from the previous month.

Dave
 
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