Non-Payers

[MEvans857]

Just getting some collective idea's to deal with those wonderful people who expect you to give them top notch service and decide not to pay for it. I've been fairly lucky with avoiding those types but for some reason this one couple will not pay. Not a huge bill but still the point of it. They've received there normal invoice, 60 day 2nd request with a late fee and a phone call at 90 days. I asked them what the deal was and they said they have been out of town for 2 weeks and they would send the check that day. Yeah...... I also asked (again) to make sure they were happy with the work and she stated they were very happy???? Another month and a half later, still nothing. I don't get it, but any way I red a forum some what around this issuse and someone used Mad collection agency but that can cost some major $$$ that I really don't want to have to get stuck with. Looking for some other ideas........

[clclawn]

I have a freind in this buz, after 45-60 days he will start calling every day till they pay. I've never tried it but he said after a week or two he alwas gets his money.

but keep in mind, if they were trying to screw you they wouldn't take your phone call. Some people are just bad about paying bills stay on em. when you think they are trying to screw you send em to collections. 50-75% is better then nothing.

You may want to think about undoing what you did.

Ive never done this but i know a guy who would plow the drive shut in the winter. last resort but it might be fun!!!!!!!!

[GRASSISGREENER]

lol, clclawn that would be a great one, especially after they get it shoveled the first time or two, lol! I might have to try that one!
mevans857
I'm not sure if you are set up to accept credit cards but if so, be sure your including that , the icons, on your invoices. We have always attacked AR's with this and more often than not they'll pay off with the plastic. Another good tactic is to get an "Urgent-Accounts Recievable Notice" form on a post- it flourescent RED adhesive pad. Go to the home and slap it on the door, it gets attention and especially if it happens enough they'll get embarrassed!

[clclawn]

the same guy who plowed the drive shut.

a lady refused to pay for the work she requested( mowing) so the filled up a dump truck with grass clippings and dumped it in front of the garage door. Put a sign on it said This was there return poilicy for unsaticfied costomers.

[silvertouchlandscape]

Non-Payers

I have a landscape/lawn services business in the Detroit area. I have been fairly lucky with customers paying on time soo far. However, I do have about 5 customers that have past due lawn mowing bills ranging anywere from $150-$350. I have looked into collections and I really want to avoid the high % rates that they take out. I was wondering if anyone has taken any customers to small claims court before or any suggestions on this.

[clclawn]

keep in mind
if you have an acount that is 300 past due, if tha collection agency takes 33% you get 200 they get 100. Is 100 worth the time it would take you to go to small claims. figure 1 hour for filing the claim and 3 hours to go to court. 4 hours means you get 25 per hour. is that worth your time.

[Sir Turf Tracer]

Keep sending the bill with the proper intrest, then send a letter that states, When bill gets to this amount ? you will start court action.
People know you will not do much on a small bill, But when it reaches a bigger number in a year they will be happy to pay.


STT

[lw4259]

its aint free

I dont mow lawns for free, an customers that dont pay have to be dealt with. My contracts says all cost in collections can be passed on to them. May sure you after your friendly call an letters the you start sending them registered mail. They can say you never called or sent them a bill or letter, register it says you mean business. It the bill is large enough you might have a lawyer send a collection letter for you, it says you mean business.

Once the season is over i have time to sit in court an chase these people but alot of them do end up paying in time. Just remember they can spread their payments out over time if the court orders them to pay.

When you figuare out your hourly rate it has to take in to account losses.

Plowing them in or doing other stuff, forget it dont come down to their level. Your a professional

[Woody]

I'm going to post this info once again. It seems this comes up from time to time. THIS is what has worked for me, and many others, and it will work for you too.

When you get someone that keeps giving you the runaround on payment, you MUST go see them in person! Phone calls are nice reminders, as are sending bills out in the mail.... BUT.... The only way you are going to resolve this issue is to show up in person! Go to their house to start with. If you don't get paid, the next step is to show up where they work. IN PERSON! Always be professional and courteous!! Plowing a driveway shut may sound like a good idea (I'm a hothead at times, so it would sound great to me too), but it will NEVER help your business! Forget about stuff like that.

Usually, when you show up where they work, or at their house when they have company, etc., they will pay you. REMEMBER THE FOLLOWING!!!!! Your customer may be dealing with things in life, such as the death of a relative, which has their behaviour, and their life, out of sorts. How would you feel if you found out Mrs. Smith just lost her sister, and then you plowed her driveway shut? What would the image of your company be like after word of this got out?

Anyhow, I do realize there are idiots who just think they can not pay for extended periods, for whatever reasons. You are going to have to show up in person. Have a backbone, be professional, be courteous, and look them straight in the eye (this is intimidating for some people). You did the work, you deserve the pay. Now, go out and get your money. Also, when you are there, you might think about putting them on a pre-payment deal for at least a few months. Just tell them it is company policy (and it should be) to have a probationary period after a non-payment episode. Remember, if this customer has been a good, paying customer in the past, they are most likely going through something unpleasant in life that has affected their behaviour. We are all human beings, and as such we all deserve to be treated with dignity and respect (this means not only the customer, but YOU too!).

Now.... Get in your truck, and go knock on their door, and get your money!

Woody

[clclawn]

woody
good point.

i have costomers that will go 2,3,or4 months without paying, they always pay at some point. 99% of people are good and honest but somtimes fall behind or get lazy. must will pay someday.

You dont plow the drive shut when you are going through the collection process. You wait a year or two, they will never think it was you.( i do not recomend plow a drive shut, i have never tried it, but hell it would be great. )

[dave_n_mulberry]

if you charge an interest payment it has to be included in your initial agreement of and i think the max is 1.5% per month of the un-paid balance.. it may be different in different states but fl requires the customer be notified in advance of incurring any charges that a late penalty will be assesed.

[dave_n_mulberry]

a follow up in my other business i give them a set price for work done but i also tell them this is a discounted price if payment is received within 10 days of billing, if payment is not made then the higher charge is due and payable. have not done this with the lawn service as everyone has always paid me.... maybe i have to get bit once.

[Seascape]

Short of small claims court,,,,, Residential are easier than commercial. 1 way is to obtain the neighbors name and or phone #. Call the neigbor and explain that you have not been able to get in touch w/ theyre neighbors regarding theyre account. Dont mention debt, just that its important to speak w/ them. Ask if theyve seen them,or if they can get a meesage to call you to them. They immediately know what your calling about and what your up to. I assure you your debtor will have the message within 15 minutes and will be outraged. They will more than likely call you screaming,, but youll get paid. Even the neighbor may yell at you but so what,, theyll still relay the message and youll get paid. You can also use this tactic w/ mail but its not near as quick and effective. Simply put RESIDENT and the neighbors address,,, enclose a copy of theyre neighbors past due bill. Your bebtor will get it. These tactics are embarrassing to your debtor and any collection angency will tell you very effective. You can pretty much count on never working for them again but who cares if you have to chase your money down. If the problem isnt resolved w/ 1 neighbor than work another neighbor. Trust me when theyre neighbors start calling them or coming over w/ theyre past due bills theyll pay up to avoid any further embarrassment. Id only use this if youve sent a past due notice and they have broken a promise to you vebally to pay the bill.
mike

[Sir Turf Tracer]

Re: Non-Payers

Originally posted by MEvans857
Just getting some collective idea's to deal with those wonderful people who expect you to give them top notch service and decide not to pay for it. I've been fairly lucky with avoiding those types but for some reason this one couple will not pay. Not a huge bill but still the point of it. They've received there normal invoice, 60 day 2nd request with a late fee and a phone call at 90 days. I asked them what the deal was and they said they have been out of town for 2 weeks and they would send the check that day. Yeah...... I also asked (again) to make sure they were happy with the work and she stated they were very happy???? Another month and a half later, still nothing. I don't get it, but any way I red a forum some what around this issuse and someone used Mad collection agency but that can cost some major $$$ that I really don't want to have to get stuck with. Looking for some other ideas........

On your pm to me, I said sell hot dogs not eat them
STT

[MEvans857]

Re: Re: Non-Payers

Originally posted by Sir Turf Tracer
On your pm to me, I said sell hot dogs not eat them
STT

Are you trying to say something?