# Best way to collect from past due customers?



## BillyM83

Have one customer who told me up front when I met her she is terrible about paying her bills on time (she owns a wave runner rental company based out of florida so is always out of town)

Coincidentally she is my only customer past 30 days


----------



## leolkfrm

tell her its time to prepay or no service?


----------



## snowplower1

I'm with Leolkfrm. she has to prepay if shes that bad at paying and knows it.


----------



## Philbilly2

Send a statement every month.

If they still don't pay,

politely insult them by writing on the statement "if you cannot afford to pay your bill, we can put you on a payment plan"... people typically send the money right away if they have it when you give them that line...


----------



## jonniesmooth

The closer we get to spring, the harder it is to get paid.


----------



## Mr.Markus

I wouldn’t insult them but I would make it clear, especially to another business person that being terrible about paying your bills isn’t something to brag about.
I have some pretty big deal customers, the kind that book their phone calls through a gatekeeper. “Can you be available for a 5 min call from ****** on March 30 at 3:10?”
You would think these are the type to play the busy, out of the country game. They are not, I email 80% of my invoices, (the others are elderly and like the snail mail.) I hit print send at the same time and the high end customers send me an e transfer before the others even stop printing. I don’t let a lot of people get far behind, 3 months and I’m knocking on the door face to face to make sure you’re not dead. There is something about a little face to face that works every time.


----------



## SHAWZER

The few late payers I have are all from 2-3 hours away . Add interest on there bills and tell them you may put them on the small town , every plow guy will know that they dont pay list so nobody else will plow them ......


----------



## JMHConstruction

Have you tried a crowbar? Maybe a hired thug

Honestly I'm surprised you even added someone who told you up front that they wouldn't pay on time...
Do you have a late fee? I'm guessing since it's the end of the season she's blowing you off on purpose.


----------



## JD Dave

Mr.Markus said:


> I wouldn't insult them but I would make it clear, especially to another business person that being terrible about paying your bills isn't something to brag about.
> I have some pretty big deal customers, the kind that book their phone calls through a gatekeeper. "Can you be available for a 5 min call from ****** on March 30 at 3:10?"
> You would think these are the type to play the busy, out of the country game. They are not, I email 80% of my invoices, (the others are elderly and like the snail mail.) I hit print send at the same time and the high end customers send me an e transfer before the others even stop printing. I don't let a lot of people get far behind, 3 months and I'm knocking on the door face to face to make sure you're not dead. There is something about a little face to face that works every time.


You are a little intimitading with your size and face tattoos.


----------



## jonniesmooth

Mr.Markus said:


> I wouldn't insult them but I would make it clear, especially to another business person that being terrible about paying your bills isn't something to brag about.
> I have some pretty big deal customers, the kind that book their phone calls through a gatekeeper. "Can you be available for a 5 min call from ****** on March 30 at 3:10?"
> You would think these are the type to play the busy, out of the country game. They are not, I email 80% of my invoices, (the others are elderly and like the snail mail.) I hit print send at the same time and the high end customers send me an e transfer before the others even stop printing. I don't let a lot of people get far behind, 3 months and I'm knocking on the door face to face to make sure you're not dead. There is something about a little face to face that works every time.


I used to collect in person when I started. It was very much like when I had my paper route in junior high.

I had one customer who lived 50 miles away. I maintained a river property for him near me.
Went to his door, he wouldn't even open it to talk to me. He called the cops, I had a nice chat with them, then went to the bar.
He never paid me.


----------



## FredG

JD Dave said:


> You are a little intimitading with your size and face tattoos.


That would give me a reason not to pay him, Look like some kind of freak show lol. https://www.google.com/search?q=fac...AhUNq1MKHTKGADIQ9QEIMTAD#imgrc=KccrV0bNMpp3xM:


----------



## Randall Ave

Has she paid you anything for the season? What's she owe,?


----------



## Mr.Markus

You wouldn't believe how quickly the older ones cave...


----------



## FredG

Mr.Markus said:


> You wouldn't believe how quickly the older ones cave...


Your not telling me nothing, The last thing you want to see is me standing next to your car. Very efficient,


----------



## BillyM83

Randall Ave said:


> Has she paid you anything for the season? What's she owe,?


Yeah, she actually wrote me a check when I met her and prepaid for 2 plows. I've done 5 plows total, so she owes for 3. I'm not super worried yet, I texted her today and said she's approaching past due status and to pay ASAP otherwise late fees will be assessed.. she told me she needs to "review my invoices then she'll pay"


----------



## m_ice

Go to Florida, rent a jet ski from her, and run the crap out of it. When she ask why it's all banged up tell her you bad about abusing rentals.


----------



## Philbilly2

m_ice said:


> Go to Florida, rent a jet ski from her, and run the crap out of it. When she ask why it's all banged up tell her you bad about abusing rentals.


LmfaoThumbs Up:laughing:


----------



## BillyM83

m_ice said:


> Go to Florida, rent a jet ski from her, and run the crap out of it. When she ask why it's all banged up tell her you bad about abusing rentals.


Winner


----------



## On a Call

Call call call


----------



## Randall Ave

And document everything.


----------



## Avalanche 2500

I would approach her w/a knee kicker at hand !! Being in the flooring business myself


----------



## Walleye Hunter

JMHConstruction said:


> *Have you tried a crowbar? Maybe a hired thug*
> 
> Honestly I'm surprised you even added someone who told you up front that they wouldn't pay on time...
> Do you have a late fee? I'm guessing since it's the end of the season she's blowing you off on purpose.


I was thinking that Joe Pesci's probably looking for something to do...


----------



## FredG

Walleye Hunter said:


> I was thinking that Joe Pesci's probably looking for something to do...


In NY there are guys that look like him and act like him lol.


----------



## wishfull

We don't do residential so don't have that kind of a problem. Our commercial clients vary. The longer they take to pay the higher we charge them. An awful lot of them now pay immediately after invoice by credit card and some even give us their card info. and tell us to just go ahead and put it through when we do work for them. Works great for us and seems to work for them also. Maybe we just have good clients. Try that approach with your client although if she is telling you she has to review your invoices I smell a rat.


----------



## Philbilly2

wishfull said:


> We don't do residential so don't have that kind of a problem. Our


I found it easier to get paid by residential... finish work, send invoice, get paid typically. Sometimes leave with a check!

None of this net 30, 60, 90, 120, make sure your w-9 and coi are good, send invoice to wrong e mail it is lost forever... that BS


----------



## cwren2472

BillyM83 said:


> who told me up front when I met her she is terrible about paying her bills on time


Am I the only one who admires her honesty? I mean, really, who else in this thread can say they have a customer who admitted to being a deadbeat before you even did any work?


----------



## BillyM83

cwren2472 said:


> Am I the only one who admires her honesty? I mean, really, who else in this thread can say they have a customer who admitted to being a deadbeat before you even did any work?


Definitely not a deadbeat - house she owns is worth 1 mil in a ritzy part of town here.. maybe that's why she's so rich!


----------



## m_ice

I admire the fact that she's honest but don't admire the fact that she's not willing to fix it. That mindset is what's wrong with people now a days, everyone is entitled to short others because of their own flaws. 
On a side note, 1 of my questions to new customers is how do they pay their bills? And I adjust my bid accordingly if I know they are 30+ days.


----------



## FredG

BillyM83 said:


> Definitely not a deadbeat - house she owns is worth 1 mil in a ritzy part of town here.. maybe that's why she's so rich!


She single and pleasant looking Women? lol


----------



## Mr.Markus

FredG said:


> She single and pleasant looking Women? lol


Her ex husband doesn't think so...


----------



## Freshwater

The old "I have to review the invoices" ...
1mil house....
Business owner...

She'l pay, but on her time. People like her need to feel powerful over other people. She doesn't view you as important enough in her world. The ones who are important get paid on time believe me. She will pay you'l have to be persistent though. Drives get pre paid for me, you can try that route. I'd drop her, people like that drive me crazy.


----------



## Philbilly2

Freshwater said:


> She'l pay, but on her time. People like her need to feel powerful over other people. She doesn't view you as important enough in her world. The ones who are important get paid on time believe me. She will pay you'l have to be persistent though. Drives get pre paid for me, you can try that route. I'd drop her, people like that drive me crazy.


It is not always that they feel "powerful" over people...

I have a sub that every time they submit an invoice, they will send a statement at the end of the month and ask when they are going to be paid. Honesty it has gotten to the point that it annoys me to the point that I hold their check longer just because they are a pain in the butt EVERY job.

Everyone in my industry knows how construction draws work... I am not going to pay you until I am paid as I want you to lien with me if it gets that far. So why would this person feel the need to be a thorn? It just pisses me off.


----------



## JustJeff

FredG said:


> She single and pleasant looking Women? lol


Fred, I don't give a damn how good a woman looks. You can find the finest looking piece of tail in the world, and somewhere there's a guy that's tired of dealing with her B.S.


----------



## BillyM83

Freshwater said:


> The old "I have to review the invoices" ...
> 1mil house....
> Business owner...
> 
> She'l pay, but on her time. People like her need to feel powerful over other people. She doesn't view you as important enough in her world. The ones who are important get paid on time believe me. She will pay you'l have to be persistent though. Drives get pre paid for me, you can try that route. I'd drop her, people like that drive me crazy.


This seems to be the most accurate assessment of this situation.. I had a bad feeling about her when I met her


----------



## Philbilly2

BillyM83 said:


> This seems to be the most accurate assessment of this situation.. I had a bad feeling about her when I met her


If that is the case, hit her with some finance charges for past due. That helps to get attention of poor payers...


----------



## BillyM83

Philbilly2 said:


> If that is the case, hit her with some finance charges for past due. That helps to get attention of poor payers...


I've been mulling that over.. I'm probably going to wait till the 1st of the month before I throw some finance charges on


----------



## BillyM83

I feel like I should clarify a little bit on how her saying she needed to review the invcoices was brought up .. 

Tuesday Mar 13, I texted her: "Hi, your account is quickly approaching past due status. Can you please take care of the balance ASAP to avoid late fees?" 

Her reply: "Hi - for which property? I prepaid my property, correct? You were going to correct the invoice and resend to me." 

"Yes, you did prepay you property for 2 plows, however I have plowed it 3 times. I did resend the corrected invoice to you back on 2/13. I will resend it again today for you." 

"Ok, let me review the invoices and get them paid."


----------



## Philbilly2

BillyM83 said:


> I feel like I should clarify a little bit on how her saying she needed to review the invcoices was brought up ..
> 
> Tuesday Mar 13, I texted her: "Hi, your account is quickly approaching past due status. Can you please take care of the balance ASAP to avoid late fees?"
> 
> Her reply: "Hi - for which property? I prepaid my property, correct? You were going to correct the invoice and resend to me."
> 
> "Yes, you did prepay you property for 2 plows, however I have plowed it 3 times. I did resend the corrected invoice to you back on 2/13. I will resend it again today for you."
> 
> "Ok, let me review the invoices and get them paid."


Sounds like she is going to pay them... that was only 3 days ago right?


----------



## BillyM83

Philbilly2 said:


> Sounds like she is going to pay them... that was only 3 days ago right?


Yes


----------



## JustJeff

She'll pay you. But from this point forward I would give her a seasonal price and offer her a discount on it if she pays for the whole season up front. This is why our seasonal accounts pay prior to the first of each month if they want to be serviced. Also, how have you only serviced her property 3 times this year? What's her trigger, 4"?


----------



## Freshwater

Philbilly2 said:


> It is not always that they feel "powerful" over people...
> 
> I have a sub that every time they submit an invoice, they will send a statement at the end of the month and ask when they are going to be paid. Honesty it has gotten to the point that it annoys me to the point that I hold their check longer just because they are a pain in my hole EVERY job.
> 
> Everyone in my industry knows how construction draws work... I am not going to pay you until I am paid as I want you to lien with me if it gets that far. So why would this person feel the need to be a thorn? It just pisses me off.


Feel powerful might be the wrong phrase. There's something about certain people where they drag their feet, review, check, recheck. You just know you've been categorised a certain way , different from say the electric bill or the vendor who supplies her business. Your service is simply not valued as much.


----------



## Randall Ave

Freshwater said:


> Feel powerful might be the wrong phrase. There's something about certain people where they drag their feet, review, check, recheck. You just know you've been categorised a certain way , different from say the electric bill or the vendor who supplies her business. Your service is simply not valued as much.


Well it's kinda like here. When you're trucks broke down, I'm your favorite guy. But I have a few customers that as soon as they pick it up, I'm a forgotten sole.


----------



## BillyM83

JustJeff said:


> She'll pay you. But from this point forward I would give her a seasonal price and offer her a discount on it if she pays for the whole season up front. This is why our seasonal accounts pay prior to the first of each month if they want to be serviced. Also, how have you only serviced her property 3 times this year? What's her trigger, 4"?


She contacted me early Feb (red flag????) and hired me then.


----------



## Freshwater

BillyM83 said:


> She contacted me early Feb (red flag????) and hired me then.


Absolutely a red flag.


----------



## Randall Ave

BillyM83 said:


> She contacted me early Feb (red flag????) and hired me then.


It's the end of the season, if by chance it snows again. Don't do anything till your paid.


----------



## Snow tracker

I have some wealthy clients with second homes or third homes in my area. They hate to pay a small bill with a check, especially if they know they will have another bill next month. I bill monthly and can tell you who’s check will be in the box three days after billing and who’s check will be at 10 days. But I have a handful that will get the bill every month and still send a check for the whole year in April. Now I have worked for these people for ten plus years and I know I will get paid and of course the rate is adjusted accordingly. If they were a new client I would get persistent. I would also recommend you get set up with the ability to take online payments and credit cards.


----------



## BillyM83

So it's been a week since she told me she needed to review the invoices and get them paid. I just texted her (Yes, texting is the best way to communicate with her) the following message: 
Good morning, this is a courtesy text asking if you would please take care of the past due invoices. Thank you!


----------



## wishfull

This is starting to not look too good. We had landscape customer many years ago (with lots of money by the way) pull this stunt on us. As long as the bill was a large one everyone got paid but if it was a small one, say under $500 you were s.o.l. He knew it wasn't worth your while on a small bill to spend a lot of time trying to collect. He had properties all over and done this to plumbers, electricians, anybody who worked for him. He eventually run out of people to screw so he started selling off his properties and started paying a bit better.


----------



## BillyM83

wishfull said:


> This is starting to not look too good. We had landscape customer many years ago (with lots of money by the way) pull this stunt on us. As long as the bill was a large one everyone got paid but if it was a small one, say under $500 you were s.o.l. He knew it wasn't worth your while on a small bill to spend a lot of time trying to collect. He had properties all over and done this to plumbers, electricians, anybody who worked for him. He eventually run out of people to screw so he started selling off his properties and started paying a bit better.


This is my fear. However, I do pass this subdivision on my way into work every day so the next big snow snow storm that hits let's just say she might end up with a little extra on her driveway


----------



## BillyM83

UPDATE: Today, she texts me she put a check in the mail for one of the accounts due, and that the other account was to be auto-billed, which I had explained to her that I don't do auto-billing as my bank charges me and arm and a leg for it. We're supposedly getting 3-5" of snow this weekend (pray for it)


----------



## JustJeff

We are? I haven't heard a word about it.


----------



## BillyM83

JustJeff said:


> We are? I haven't heard a word about it.


----------



## JustJeff

I don't see any accumulations on there.


----------



## BillyM83

JustJeff said:


> I don't see any accumulations on there.


Read the description on Saturday again


----------



## Philbilly2

JustJeff said:


> I don't see any accumulations on there.


----------



## JustJeff

I don't believe it. Not that I trust this app on my phone AT ALL, but this is what it's showing for me.


----------



## JustJeff

Philbilly2 said:


> View attachment 179508


Gotcha.


----------



## Philbilly2

JustJeff said:


> I don't believe it. Not that I trust this app on my phone AT ALL, but this is what it's showing for me.
> 
> View attachment 179509


We have rain all day but I am a lot more south


----------



## JustJeff

Just caught the weather. They still don't know. Could be rain, could be snow, could be a mix. I'd be willing to bet no snow.


----------



## Snow tracker

Did I miss it? How much money are we actually talking about? You said she paid for two plows and owes for three. Is this just a residential drive, a commercial property or HOA? Sorry if I missed this info somewhere. You said some invoices need auto pay, so are we talking about different properties?


----------



## BillyM83

Snow tracker said:


> Did I miss it? How much money are we actually talking about? You said she paid for two plows and owes for three. Is this just a residential drive, a commercial property or HOA? Sorry if I missed this info somewhere. You said some invoices need auto pay, so are we talking about different properties?


I plow 2 properties. One is her private residence and one is a house she is selling. We're talking roughly $300 total past due. She asked me if I could automatically ACH withdrawal her money which I can do if I set it up with my bank for a fee of $25/mo. (Not worth it for me) 
I emailed her saying exactly that plus I suggested her using a cash sending app such as chase quick pay or PayPal. I'm most likely cutting her off after this season unless I can make her prepay for the season somehow.


----------



## BillyM83

Woke up this morning to an email from Chase that she quick paid me about 1/3 total due of her invoices... she messaged me saying she mailed in a check over the weekend for the commercial property. We shall see.


----------



## wishfull

Keeping my fingers crossed for ya. Nothing worse than doing an honest days work for no pay. Life can be a beech.


----------



## Philbilly2

BillyM83 said:


> I plow 2 properties. One is her private residence and one is a house she is selling. We're talking roughly $300 total past due. She asked me if I could automatically ACH withdrawal her money which I can do if I set it up with my bank for a fee of $25/mo. (Not worth it for me)


So could you not just charge her the $25?


----------



## Snow tracker

Philbilly2 said:


> So could you not just charge her the $25?


Call it a convenience fee


----------



## Mr.Markus

Snow tracker said:


> Call it a convenience fee


*inconvenience fee.


----------



## BillyM83

wishfull said:


> Keeping my fingers crossed for ya. Nothing worse than doing an honest days work for no pay. Life can be a beech.


Got the money from her personal driveway and got the ol' "the check is in the mail" for the other property. Hard to believe since it's been 5 business days since I was told that and we live in the same zip code


----------



## BUFF

BillyM83 said:


> Got the money from her personal driveway and got the ol' "the check is in the mail" for the other property. Hard to believe since it's been 5 business days since I was told that and we live in the same zip code


Just go and collect the money in person.


----------



## JBMohler

I send out my invoices through PayPal. I haven’t even met 70% of my customers. No one gets to 30 days, it’s within 4 days usually and everyone is paid up.

A 50 invoice I’ll net like 46.


----------



## Mr.Markus

JBMohler said:


> I send out my invoices through PayPal. I haven't even met 70% of my customers. No one gets to 30 days, it's within 4 days usually and everyone is paid up.
> 
> A 50 invoice I'll net like 46.


It cost 8%???


----------



## JBMohler

Oops I just looked, I net 48.25


----------



## Randall Ave

Persistance pays off. Be a pain, call, Email, snail mail. I finally got paid today for repairs I did last year. Pay costs that much to use?


----------



## Landgreen

Randall Ave said:


> Persistance pays off. Be a pain, call, Email, snail mail. I finally got paid today for repairs I did last year. Pay costs that much to use?


It takes up a lot of time but the above is what I have found is the best way. Throw in a threat of small claims court will help too.

I received a check for an acct 60 past due. She added $50 for "gratuity". Lol. I have never had someone nice enough to add extra for being delinquent.


----------



## Philbilly2

JBMohler said:


> Oops I just looked, I net 48.25


What?


----------



## JBMohler

Philbilly2 said:


> What?


PayPal takes 1.75


----------



## Mr.Markus

JBMohler said:


> PayPal takes 1.75


If payfriend takes $1.75 of your gross and you net $48.25/50 then you have no costs associated on your end?


----------



## JBMohler

That's all PayPal costs yes. It's so worth it at least for me doing residential work.


Mr.Markus said:


> If payfriend takes $1.75 of your gross and you net $48.25/50 then you have no costs associated on your end?


----------



## jomama45

I understand PayPal and paying directly through Quicken, credit cards and the rates you pay them and all that. I realize you get your money quicker in general, but call me old fashioned, I'd still rather wait 30 days and not get dinged 3.5% on my receivables..........


----------



## JBMohler

I also have a pay pal debit card and it gives cash back, however much that is, maybe 1%


----------



## NYH1

My peeps pay in three waves. Some in the beginning of the season, some in the middle of the season and the last few are trickling in right now. It works out pretty well. Money coming in all season long.

I never had much of a problem with any of them paying. Maybe the _just back from Afghanistan DEVGRU look_ helps, I don't know. I'd hate to have to chaise anyone down for money. That might could turn into a hassle. 

NYH1.


----------



## BillyM83

Still haven’t been paid...


----------



## NYH1

So it's been three weeks since the _"last time"_ she said she was gonna pay ya. Might be about time to take your German Shepherd over for a walk in her yard....prolly around dinner time would be good.

NYH1.


----------



## BUFF

NYH1 said:


> So it's been three weeks since the _"last time"_ she said she was gonna pay ya. Might be about time to take your German Shepherd over for a walk in her yard....prolly around dinner time would be good.
> 
> NYH1.


Send her some sweets.


----------



## NYH1

BUFF said:


> Send her some sweets.


Yeah, I kinda like that too.

NYH1.


----------



## BillyM83

Texted her last night and she said check no. Xxxx was finally mailed


----------



## Randall Ave

This is why the other guy left. If it was me, after I was paid in full, she's done.


----------



## JMHConstruction

Get a square reader or the QuickBooks reader or something, get their CC information, and set up a payment schedule with them. Email an invoice, and tell them you will "autopay" on the 15th of every month or something (just sit down every month and manually type it in). You'll need them to sign something approving it, but then you can be in control.

If you want to continue working with a customer like this, you need to do something like that. Eat the 5% or whatever they charge for the rest of this year, and then next year charge enough to cover it. $300 isn't worth putting a lien or anything on them, so you'll have to find another way to get paid.


----------



## NYH1

I'd get my money and flush her!

NYH1.


----------



## BillyM83

She finally PAID today!!


----------



## jonniesmooth

I've got 2 that have been late every month this season. It's the only positive thing that comes out of April blizzards, people paying their bill.
But that 14" storm missed us this weekend.
Glad you got your dough!


----------



## NYH1

BillyM83 said:


> She finally PAID today!!


Good. Now next year tell her you're to busy....even when you drive by her house.

NYH1.


----------



## Randall Ave

NYH1 said:


> Good. Now next year tell her you're to busy....even when you drive by her house.
> 
> NYH1.


Beat me to it, but I was going to add, plow her in.


----------



## Philbilly2

Come on fellas...

She is like 60 days past and you are going to write the customer off? 60 days is not ****. Good luck to you if you ever want to grow... 

Add a few percent to cover the auto withdraw, or credit card processing, or what mind you, add another couple percent for dealing with a PIA customer, and tell her at the start of next season that you will need payment upfront each month to get on the list of sites that will be serviced.

As long as it is up front and in the open, make them be the person to make the decision of if you will service the site or not.


----------



## John_DeereGreen

Philbilly2 said:


> Come on fellas...
> 
> She is like 60 days past and you are going to write the customer off? 60 days is not ****. Good luck to you if you ever want to grow...
> 
> Add a few percent to cover the auto withdraw, or credit card processing, or what mind you, add another couple percent for dealing with a PIA customer, and tell her at the start of next season that you will need payment upfront each month to get on the list of sites that will be serviced.
> 
> As long as it is up front and in the open, make them be the person to make the decision of if you will service the site or not.


This...

I have a snow customer that always pays 60-90 days instead of the 30 that my contract states. I gave the property manager 2 options after the first season when she explained how they pay slowly in the winter time.

Option 1: pay your invoices on time and no price increase or late charge will be applied.

Option 2: pay your invoices at your leisure, my terms are still net 30, with a base price increase of 15%, and a 2% per month late charge on any past due amounts.

She picked option 2, and this winter was our 4th servicing the account. I'll gladly be a bank if someone is paying me to do so.


----------



## Philbilly2

John_DeereGreen said:


> This...
> 
> I have a snow customer that always pays 60-90 days instead of the 30 that my contract states. I gave the property manager 2 options after the first season when she explained how they pay slowly in the winter time.
> 
> Option 1: pay your invoices on time and no price increase or late charge will be applied.
> 
> Option 2: pay your invoices at your leisure, my terms are still net 30, with a base price increase of 15%, and a 2% per month late charge on any past due amounts.
> 
> She picked option 2, and this winter was our 4th servicing the account. I'll gladly be a bank if someone is paying me to do so.


This sounds very similar to one of my factories...

Their terms are net 60, they pay 120 to 150...

Every time I bid the next job there, I add the interest from the last job plus quite a few more percent for "admin fees" or what ever I call them that day.

When the facility manager asks why the project that I am bidding at that time is SO expensive, I tell him it is because his office cannot pay in time... as soon as they start to pay on time, my quotes will reflect this... he understands and accepts this


----------



## NYH1

Everyone has choices on how they want to do business. 

NYH1.


----------



## John_DeereGreen

Philbilly2 said:


> This sounds very similar to one of my factories...
> 
> Their terms are net 60, they pay 120 to 150...
> 
> Every time I bid the next job there, I add the interest from the last job plus quite a few more percent for "admin fees" or what ever I call them that day.
> 
> When the facility manager asks why the project that I am bidding at that time is SO expensive, I tell him it is because his office cannot pay in time... as soon as they start to pay on time, my quotes will reflect this... he understands and accepts this


The first season, I called in mid January asking about November's installment. The response I got from the lady that handles accounts payable was "I just paid our property taxes for the year, things are tight right now" and the song and dance excuses just kept rolling that year.

What I don't understand, is the tenants are billed a portion of our services prorated to their square footage a month in advance. So say November invoice is $500.00. The tenants pay their prorated portion on their October lease payment. My invoice for November is sent on the first (business) day of December.

How are the funds not there to cover my invoice when it is received? They ALWAYS pay, it's just slow going.


----------



## Philbilly2

NYH1 said:


> Everyone has choices on how they want to do business.
> 
> NYH1.


EDIT: understood


----------



## JMHConstruction

If it was commercial I can see the net 30, 60, whatever, assuming it's what was agreed upon or having late fees. When it's a residential, I wouldn't accept 60 days late. If you payed a bill that late it would hurt your credit score, why accept it from a customer?

Maybe I've just been lucky and haven't had to deal with it. If I was chasing money for 2 months on a deck I built I'd have started the lien process. I also wouldn't put up with it for a few hundred bucks from plowing a driveway. If it was your biggest money maker, maybe. Dealing with that for what, $30 or so in late fees wouldn't be worth the hassle for me.

Just my 2 cents, not worth much


----------



## Philbilly2

JMHConstruction said:


> If you payed a bill that late it would hurt your credit score, why accept it from a customer?


Would it though?

Let me give you an example here directly relating to your line of work...

What if you had a customer that had you build a deck for and they paid you 15-30 days late, BUT they DID pay the full amount. Then they asked you to come back and add on to the deck. SO you knowing that they pay late, add 15%-50% to the base bid of what you need. They again pay late, but this time it is 30-45 days late. They again ask you to now remodel their kitchen... NOW they have stuck you 2 times... you better than _double _your base bid and they say "when can you start?"

So what your telling me is that you have a signed contract in your hand that you can make double the profit that you would make working on the other side of the street from someone that will pay you when you are done...

Are you sure about this still... cus being the bank can be very profitable at times... don't believe me, look at how much interest you pay on your mortgage each month compared to how much principal...


----------



## framer1901

Heard a story once from a guy - sitting around a table, a bunch of guys comparing their line of credit interest rates, when it came to this guy, he said interest is something I earn, not pay.

Late payers, priced correctly, are some of your best customers.


----------



## JMHConstruction

Philbilly2 said:


> Would it though?
> 
> Let me give you an example here directly relating to your line of work...
> 
> What if you had a customer that had you build a deck for and they paid you 15-30 days late, BUT they DID pay the full amount. Then they asked you to come back and add on to the deck. SO you knowing that they pay late, add 15%-50% to the base bid of what you need. They again pay late, but this time it is 30-45 days late. They again ask you to now remodel their kitchen... NOW they have stuck you 2 times... you better than _double _your base bid and they say "when can you start?"
> 
> So what your telling me is that you have a signed contract in your hand that you can make double the profit that you would make working on the other side of the street from someone that will pay you when you are done...
> 
> Are you sure about this still... cus being the bank can be very profitable at times... don't believe me, look at how much interest you pay on your mortgage each month compared to how much principal...


I agree to a point. Would I do it for a project that brings thousands in revenue, yes. However, is it worth your time and effort for one residential driveway?

Is double the profit realistic though? I've had plenty of people late, but 10% (max in KS) of a $15,000 deck is much better than 10% of a hundred dollar driveway.

At what point is it not worth chasing your money anymore?

I get where you're coming from though, and do agree


----------



## Aerospace Eng

So going back to the original post.....Next year have her prepay for however many plows you did this year, plus a few. Then, after the season is over, refund the balance (after however many months she was late).


----------



## Mr.Markus

Refund... Is a funny word in this instance.

I would set a yearly price for coverage, If she doesn't want it you are that much more ahead. Make it worth your while. Ie: I base my prices on an average amount of service events, plus I add a flub of 20%. If the customer wants to prepay(the whole season) they get a discount of 10%.


----------



## Philbilly2

JMHConstruction said:


> I agree to a point. Would I do it for a project that brings thousands in revenue, yes. However, is it worth your time and effort for one residential driveway?
> 
> Is double the profit realistic though? I've had plenty of people late, but 10% (max in KS) of a $15,000 deck is much better than 10% of a hundred dollar driveway.
> 
> At what point is it not worth chasing your money anymore?
> 
> I get where you're coming from though, and do agree


10% is always 10%... $150 one time or $15 one hundred times... still 10% will be 10%.

I like 20% better than 10, but I like 10% better than 5....

The point in which it is not worth chasing your money is the day that it is no longer profitable to chase. I don't think you get rich chasing it... you have to get it on the front side if you catch my drift.

And yes... double is realistic.


----------



## EWSplow

I've got a client who never pays on time and never pays the total balance'
I keep a running spreadsheet showing monthly late fees of 12% (you can charge 18% finance charge, but then you have to report it to the bureau of finance) which he gets as a statement. He doesn't quibble over the late fees. There aren't to many places you can make 12% on savings, or investments, so it's a pretty good deal.


----------



## JustJeff

I agree with Phil, as stated above. This is why every seasonal residential customer paid me at least part, if not all of their bill prior to me servicing them. I'm not going to get my panties in a wad over 300.00. The next season, she would either prepay me, or not be serviced. Losing a single customer of 300.00 a year isn't going to break me if they don't like my terms.


----------



## FredG

I don't quite understand it, But this new QB thing my Warden and daughter installed has late fee's in the invoicing part if you want to use it. Along with a 2.9 % fee for credit cards and a bunch of other options. Thank God I don't have any late payers right now. 

I had one that I still work with that was late all the time and always hiding his office is like trying to get into a prison. I nice friendly talk with him out by his car solved that. He told his superintendents not to use me no more. I don't know what changed his mind but it did not last a week before they were calling me back.


----------



## stevesyardcare

Philbilly2 said:


> Send a statement every month.
> 
> If they still don't pay,
> 
> politely insult them by writing on the statement "if you cannot afford to pay your bill, we can put you on a payment plan"... people typically send the money right away if they have it when you give them that line...


I like this, will have to remember that line!


----------



## Jacobmb

I used to purposely leave houses that didn't pay until the end of the route, if they were unresponsive to my collection requests. It is wonderful to have an irate customer calling at 9am asking what happened and why we havn't shown up yet. Respond: I am happy to swing by now if you can leave a cheque in the mailbox to get up to date we can kill two birds with one stone. Usually does the trick.

This year I am providing 3 options for contracts and will not be offering per push.

1) Pay in full for the season post dated cheque (or cash or e tranfser) and get 10% off

2) Provide two post dated cheques (or pay 2 cash or e transfer installments) one dated Nov 15 the other dated Jan 1st

3) Provide 5 post dated cheques for 5 months of service

The only money I have to chase this way will be people who decide to do 2 installments (and only the second installement who didnt provide post dated cheque will have to be chased) and will likely only need one round of collection notices/reminders sent out for these guys. 

Our contract states that we reserve the right to suspend service due to non payment past Jan 1 and that we are to be held harmless due to non performance of contractual obligations due to non payment.


----------



## 2 Guys and a Snow Blower

I own and operate a snow management service in Montreal, Quebec Canada. I have 13 employees in my employ, We cater mostly to high-end homes. 
I have some clients that are out of the country.
All my clients pay for our service upon arrival.
Either I or one of my lead hands will look at the amount of time it will take.

Clients are told what the hourly rate is. . . 
Clients are told billing is in increments of 60 Minutes.
Kinda like a parking meter. 

With one of my truck parked in front of their property, and my employees and equipment there. Is not like we take their money and run away. 
I am listed in 4th place on Yelp.ca


I ALWAYS get paid before any work is performed.
I accept Visa, Master Card, AMX, CASH, e-Transfers.
I even built my very own website that accepts on-the-spot-payments.

Have your clients pay for your service BEFORE you remove a single snowflake. If their intentions are legit they will pay you up front, if not.... then you just avoided a problem.

Remember guys
They need you
You do not need them


----------

