Non Paying Customers

[Stephen M.]

Bulldog, $5 off is about an 11% discount. That seems excessively high when considering that most "to the trade" distrubutors are only doing a 2% discount for early payment.

[Stephen M.]

What do I do about customers that won't pay? I have one guy who gave me the runaround and he owes me $100. I was just starting and not exactly sure how to do everything. I cut his yard the 1st time and told him I would pick up the money next time. The next time he told me to send him a bill. Well, I sent him a bill and between that time I cut it again. Next thing I know this fool owes me $100. I attempted numerous times to send him a bill, even sent it certified! Called him numerous times and even threatened to go to court. I really don't want to go to court, but it seems that I may have to. I have a few customers like that, fortunately they don't owe me as much. I know this may seem like little money to many, but it is alot to me. And just the freakin Principal that I did the damn work. Any suggestions?

Small Claims court is always a good option if your state has favorable laws that help you collect. While they don't guarantee collection, I believe that it is a national deal that credit bureaus regularily check the court action dockets for people like that who are non payers and the judgement affects their credit rating.

What I will start doing next year is having prospects fill out a regular generic credit application. If they won't, then I don't need them as a customer.

There are always people who will get stuff done and then decide you don't deserve payment. You can thank the numerous Do It Yourself books out there that tell people that the "lawn boy" billing can be ignored and put off if they are strapped for cash. The way to fight back is putting out the message that the "lawn boy billing" is every bit as important as paying the rent or morgage payment!

[EncinoLawns]

Your not alone. I had one cust. two years ago cancel service and never paid her final bill. Another outfit who services the same area told me she had done the same to him. Well just this year she pulled up to one of my jobs and asked me if I could give her a bid on her lawn. I informed her I would if she would pay the bill from the last time I worked for her, I then received a deer in the head lights stare as she rolled up her window and drove away.

[kiddinla]

ahh man, you lucky sucker. i wish i'd have been around to see that look. . To get a chance to tell off a customer is rare, but i try to do it up right. good goin.

[bobbo]

My best advice, know your demographic! I find the older folks more appreciative, and the 1st check i get every month. In 5 years i have yet to run down an older folk who was late in paying. Know who NEEDS your services and blitzcreek them.

old folks dont have $$. You need the young wallstreet people that move out of the city to buy million dollar homes and have never owned grass let alone cut it before..

[Georges Lawn & Mulch]

They get us all sooner or later. Have one right now that is trying to stiff me $120.00 for a load of mulch that she ordered. Sold her one load and she paid me up front. Ordered the 2nd load the same day. When I dumped the load 2 days later she wasn't there to pay eventhough she said she would be. Left the invoice in her door. I figured she would pay it with no problem. 30 days later still no payment. Sent a past due notice to her and got a message on my machine that she never ordered the mulch and I didn't deliver it anyway. Was in the process of preparing a letter to send to her and I get a complaint letter from the Better Business Bureau that she filed on me. I responded to their letter giving them all the details of what transpired and a copy of the letter that she will be receiving. Long story, short version was pay up or I take it to court. Not that it really matters, but I can't wait to see what I get from the BBB.

[windshadow]

contracts why?

I am woundering why use a contract ? If it is so hard to collect ?

[Bulldog26]

Thier nice if you need to go to the bank for a loan.

[Stephen M.]

I am woundering why use a contract ? If it is so hard to collect ?

A contract gives you more legal standing as to the agreed on price.

Anytime there is a "meeting of the minds", there is a contract. That is the legal standard and it applies to verbal and written contracts. Obviously, its easier to prove in court, small claims or higher, that a "meeting of the minds" exists if it is in writting.

Not everybody is willing to sign a full blown contract, so the next best thing is to have a "proposal" signed which stipulates what you are going to do for person Y and the price as agreed upon. When the person signs the "proposal", you now have a very simple "contract". Now you have a contractual agreement that can prove to a court or collection agency that you indeed had a "meeting of the minds".

But a signed proposal form has limitations, as it doesn't spell out in detail things like what is and isn't guaranteed, what is and isn't your responsibility, etc.

[jgc8fan]

We have an opportunity at this very moment to get a guy that owes us $55 from last year. He lives(d) across the street from me, and never paid the last bill. It pissed me off because I see him blowing hundreds of dollars on junk, and yet he can't give us the $55.

Last month his wife left him and his two kids, and he wound up getting evicted from the house. The owner is there everyday repairing the house to start renting it again, but I guess he forgot to add changing the locks to his list. Every night the guy shows up with his kids, goes in, and leaves the next morning before the owner shows up. The owner is a retired cop, so I'm sure if I let him know the guy would be in it deep. Unfortunately... We aren't going to do anything strictly because of the kids. If it was just him I'd squeal in an instant, but the kids already lost their mom, and I'm not gonna get their dad thrown in jail or worse living in the street with 2 kids over me losing $55.

I think we lost $765 last year to non payers. we even had one ask us for more work, and informed her we would be happy to as soon as she gave us the $120 she owes us, and pays in advace for future work (never heard from her again).

Wonder... Can a business file a complaint with the BBB against another company for non payment??? We have a guy with a tile business that stiffed us for $80 last year, and I still see the guy around town with his brand new Nissan Titan, and his brand new enclosed trailer. I make a point of giving him a one finger salute everytime I see him. That one get's me more than any others... Simply because you have a guy in a service trade screwing over another. I'd like nothing more than to tell his customers what a $#!tbag he is.

[RRS]

It suprises me to hear all these stories of non-paying customers. I've been in business for 5 years and I've never had someone even make a late payment.

Half the time I have a couple months worth of payment reciepts in my desk folder before I get around to updating the accounts recievable. I just haven't had to worry about it. It must really suck to deal with people that don't pay their bills.

[Brian@Greenleaflawn]

I had an older guy that I did work for back in july. He paid me right away the first time,but when I did some work for him a week later he wasnt home to pay when I was done and I just left him a bill. well we sent him 4 more bills not to mention numerous calls and visits to his house. I finally heard from him last week and he says he forgot and was real busy, anyway I just got a check the other day and I learned that he is no longer someone to deal with. I was at the point of putting a lien on his property, and or sending him to collections. definitly recommend these two options first as getting in his face will do nothing but give you a bad reputation.

[Georges Lawn & Mulch]

RRS,

I don't have many . I usually get one a year that I have to run down. Consider yourself a lucky man that all your customers are good.

[CCLS]

Put a mechanics lein on the property you will get your money eventually and you can get upwards of 18% interest annually on your money.