What do you think of this idea?

lawn

LawnSite Senior Member
This year I am thinking about ( to clients that do not pay on time and or new clients) inserting in the first invoice a note saying something like:payment must received by the 15 Th of the month, a 30 days overdue payment we will charge $25.00
Also, we'll give you the 10 % off if you pay in cash.

Any comments? ideas?
 

Vogel-Landscaping

LawnSite Member
Location
South Jersey
late fees are tricky but ive offered a discount for payment early in the season before. this was when we were a new business and needed income in the spring for material and to pay a few guys payroll. it ended up sucking throughout the rest of the season tho. so i dont do the discounts anymore.
 

JCRalston07

LawnSite Member
Location
Newark, Ohio
I will begin assessing a late fee this year as well, let all may existing customers last december. We havent had any complaints thus far. We are charging $3.50 for 30 days late. $25 seems high to me. My thoughts were to compare my service to other services people get. Electric, gas, cell phone, ect. $3.50 for a late fee seemed consistant with those companies policies in our area. just my thoughts.
 

mikey.hill

LawnSite Member
Location
Vail, Colorado
Why not just offer an early pay discount. Thats what I do w/ my customers and it's worked out well. Pay 5 days within invoice and receive a 10% discount. Pay greater than 30 days out and 10% markup.
 

JCRalston07

LawnSite Member
Location
Newark, Ohio
I like that idea... I am a big believer in incentives...
 

Timi The Sod Lover

LawnSite Member
Location
markham TO
Assuming this is a seasonal lawn care contract. At the beginning of the season they were sent the lawn care contracts, appointments were booked to sit down and meet/ go over the terms and conditions (not really necessary) and they gave out 2 cheques one which was post dated. You could ask for one immediate and 2 post dated if you need the cash flow.
 

JFGauvreau

LawnSite Bronze Member
Location
Ontario, Canada
Ya if you say 10% off if you pay cash or if you pay cash, we pay the taxes, they all seem fishy lines to me, something related about screwing the government.

But something that could work is pre book the work, and if they pre paid, now they save 5-10%.
 

Paradise Landscapes

LawnSite Senior Member
Location
Warren, OH 44485
I don't think it's legal to charge a 25.00 late fee. I know you can charge that upto 30.00 for a return check for non-sufficient funds. Input guys?
 

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