Getting customers to pay

Discussion in 'Business Operations' started by zeroman, Jul 16, 2017.

  1. zeroman

    zeroman LawnSite Member
    Male, from Allentown, PA
    Messages: 64

    Need some advice, I bill at the end of every month. I either email the invoice or put it in the mail. On my invoice it says due on receipt, and then I have the due date for the 15th of the month. Most all of my clients pay by credit card or check. Should I put a statement on the invoice asking them to pay by the 15th. Do any of you charge a late fee if so how late do they have to be I had one customer that was 2 months behind sent them a txt saying service is suspended till payment is recieved. She txt back says they have been trying to pay online put it was not working. I told her click on the link follow the instructions. Finally they paid.

    Thanks in advance

    Don
     
  2. GrassManKzoo

    GrassManKzoo LawnSite Silver Member
    Male, from Kalamazoo, MI
    Messages: 2,638

    We had a house, lady stopped paying and we stopped service.. this was two years ago. Boss got a check for full payment last week from her attorney... she died.
     
  3. BigJlittleC

    BigJlittleC LawnSite Bronze Member
    from Chicago
    Messages: 1,385

    I bill at the end of the month with due net 15. On the 15th day a reminder is sent on the 30th service is suspended and late fee added.
     
    guitarman2420 and TrainingWheels like this.
  4. jonnyz37

    jonnyz37 LawnSite Senior Member
    Messages: 365

    You guys must love to suffer. How many times are you guys going to allow people to steal from you before you change your billing practices?
    I bill first week of the month for that month's mowing. They are in affect, prepaying. I have had two people question why i do it this way. Ive lost zero clients with this method. And i dont chase money. And i dont mow people 6 times before i get paid...if i get paid at all. You guys need to get with the times and make your lives easier.
     
    Charles, weeze and Bcoogan23 like this.
  5. zeroman

    zeroman LawnSite Member
    Male, from Allentown, PA
    Messages: 64

    How can you bill for services you have not performed? How much do you charge in late fees and how many clients do you loose.

    Thanks
     
  6. Michael Ray

    Michael Ray LawnSite Member
    Messages: 214

    So how do you handle payment if someone calls you on say, the 10th? Charge for less than a month? Then start full invoices on the 30th?
     
  7. JMK26

    JMK26 LawnSite Bronze Member
    Male, from Missouri
    Messages: 1,372

    Due upon Receipt is one of the worst terms to set up. Using the word "net" as well....studies have shown these terms are not used by everyday people and are easily misunderstood. Hard to believe, but it's true.

    I send invoices out on the 1st and the 15th. I give my clients a choice for their budget. This helps because if they get to choose the option where they have the money to pay......Invoices are due in 7 days, 10 days they are late with a $10 late fee. This is the first year I have done this....previous years have been the Net being various days...played with it each year.....the 7 days and 10 days late have shown the lowest amount of late payers than any other season...(this is my 6th season).....in previous years I would have at least 8 late payers each month......this year...I've had 2 late invoices for the whole season, and the payments are received quicker as well.
     
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  8. zeroman

    zeroman LawnSite Member
    Male, from Allentown, PA
    Messages: 64

    JMK26,
    Thanks for the great information I think I am going to follow your advice it makes more sens.

    Thanks
     
    TrainingWheels likes this.
  9. TrainingWheels

    TrainingWheels LawnSite Bronze Member
    Messages: 1,176


    Totally off topic Zero,

    Now that your problem seems solved.....You have a really nice graphic!

    Good luck my friend.

    BR,

    ~TW
     
  10. Patriot Services

    Patriot Services LawnSite Fanatic
    Messages: 14,018

    We invoice on 1st, due on 10th. We are on a monthly cycle, not pay per cut. New customers are due at time of first service. If people complain about so called not paying for services not done, I tell them they can use a cc and dispute it if needed. I tell them I risk more of not getting paid than you do not getting service. I didn't build my company and reputation by ripping people off. Your monthly payment isn't worth my integrity.
     
    Todd73 and ron mexico75 like this.

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