[sandim]

Hi all, have a client we mowed all last year. ALWAYS paid late, didn't necessarily always pay the full amount, you know, you've been there. Wanted quotes for some other things and was always trying to talk us down, which of course we didn't give in to.
Now they want us to mow them again this year, just received their renewal form in the mail. Was hoping not to.
I would really like to charge them a month ahead of time for mowing, and if we don't mow due to weather, dormant lawn, etc, give them a credit for next month. And if they don't pay we don't mow. However, since we don't do that normally, and they are friends with another client who does pay on time, seems like a bad idea.
I don't want to keep haggling with this guy over money this year. Any suggestions?

[Dot Pecson]

Would you consider simply telling your client that you are already at your quota of clients and cannot work with him this year?

Sounds like someone you should dump as soon as you can. There are just some people out there that you do not quite enjoy working with, shall we say?

In my business, I would find a polite but firm way to say, I think you'd be happier working with someone else whose a better match with what you expect from someone in my line of work.

Dot

[agla]

Up his rate. Add a line into all of your contracts that states that if payments are more than two weeks over due two times, you may bill weekly. Then you could use your discretion on when and with whom you would actually do that to. And at any time that a second bill is sent prior to receiving payment on the first bill, you may stop work until they catch up. You should have the same wording on all of the contracts so as not to descriminate.

[GLAN]

You can always talk to them about their payment history and what can possibly done to alter their payment habits.....

here's a scenario that can happen......

You inform them in the way Dot explains.....but suppose it doesn't go well and they confront you.......the back and forth soon becomes the point being about their payment habits.....or lack there of.

Now either way........You do it as Dot says..

They get together with their friends that you also do.......chit chat.......BS this and that......You become topic of converstion.........First they are curious as to why you work for the friends.......not them........Without them admitting to being bad payers.....they may or may not pick up on that............regardless.........they are resentfull........and then it starts..........they find fault in just about everything you ever did............now the friends you currently do.....they go home and during the season they critigue further your efforts looking for faults......they are going to find them.

Now......suppose these bad payers do confront you and it progresses to discussing their poor payment habits.........Right off the bat......they are insulted.......What then when they chit chat with their friends that you currently do?......Think they are going to say......"Well, the guy has a point, we don't pay on time"..........Hell no........It's going to be bashing time on you.

Either way.........there is an increased potential of the situation getting worse.

But.........what if you contact them and discuss their payment problems?........Maybe they will come to realization and be better payers.........or they tell you tuff.....that is the way we pay..........at least you confronted the issue attempting to correct the problem.....It could go either way........they leave you holding the ball and deciding to continue service, or they will terminate.

In the last scenario I presented........If they terminate or leave that up to you......I doubt highly they will discuss the issue with their friends.




It will be interesting to see other view points here on this situation



It has been my approach for several years now to try to work things out.....come to an understanding........If they feel they won't / can't.........then let it be their decision to terminate service. You'd be surprised what communicating can accomplish

[Matt Kulp]

Well said Glan, but I have less patience for some customers. If I have a customer that is constantly late payers, and reasoning with them does not work, FIRE them. They can promise all they want, but at the end of the day, they think they have the right to pay you late and will take advantage of you when they see fit. Do you really want to deal with someone like that? You could raise their rate, but that just means that you will have more money sitting in A/R when they don't pay. I have had many late payments....the first couple times it happens we will just send them friendly reminders. If they are late over 4 times in a season, they go on the LIST for next year. They will either not get a renewal, or we send them a letter stating due to past payment history, their account will be frozen if payment is over 15 days past due and no work will be done.
No matter what you do, make sure you have it in your Terms and Conditions attached to your contract. You can't just make up rules when you feel like it, without having the customers agree to it. JMO

[Terre]

What about a generic letter to all clients that unfortunately due to expense increases, (they will think gas, you know you mean non paying clients) you have to raise your rates, BUT that payment in advance, either monthly or for the season, will still get last years rates? And that failure to pay on time will result in immediate suspension of the account?


Then if they whine to their friends, the friend got the same letter and will have a clue what is going on.

[GLAN]

Patience.......yeah........I guess........maybe there's another term?


I don't turn over that many accounts one year to the next......I don't expect to and that's my goal.

I do have payment terms covered.

I guess with the customers we have for a time, I'm a little more tolerant when a hiccup occurs.

[Matt Kulp]

I agree about being a little more tolerant with long time clients. I was coming from the perspective that it was a client that has been a pain since the beginning of the relationship.

[GLAN]

New accounts.......no tolerance

Fish them out early..........keep the good ones

[Fine Edge]

Sandim,
You really didn't state in your post how much you actually talked to them about the late payments. Has there been any talk on the matter besides just a friendly reminder on your invoice?

[sandim]

Hmmm, all good points. We do have a different client that frequently pays late, BUT they always pay, and give us lots of work, so no true complaints, I know with them it's par for the course.
My biggest problem with this client is that we know for a fact they have friends we work for because they referred us to them. I do like many of the ideas afore mentioned, I am just on the fence about sending a letter out to clients who always pay on time.
My problem is that I let it go on too long last year. BAD ME!
What do you all think about just starting off on a good foot hoping for the best, and if payment becomes an issue again, then sending out a letter stating that late payments are not tolerated and all work will be suspended until payment is received. If they end up having to receive another letter, firmer terms and a warning for account termination will follow.

[Fine Edge]

If you're going to start off on a good foot, I would MAKE SURE your contract to them has agreeable payment terms and penalties that they sign off on. Don't feel bad about charging someone a finance or late fee when they disregard the contract that they signed.

[sandim]

Fine Edge,

Sorry to have not addressed your comment, somehow I missed it. There has been no talk this year. Last year at the end of the year there were a few threatening letters of further action to be taken and a couple of firm phone calls. We were extremely surprised that they renewed.

Dot, Agla, Matt, Terre, and Glan....I would like to thank you all for your comments, they have helped more than you know. We have decided that we will start the season with them again on a clean slate... just because we feel it would be awkward any other way as we work for close friends of theirs as well. The wording Agla mentioned will now be worked into all of our lawn contracts. We now have a no tolerance policy for late payments and have spent some time figuring out the wording (thanks to you all) and timeline for late payments for lawn care.

These forums are so invaluable!

Speaking of invaluable, time is such a valuable commodity, thank you all for taking the time to post your input!! It is appreciated.

[agla]

I used the word "may" in there. One of my previous employers used that to imply a zero tolerance, but allowed him discretion when he felt like using it.

[GLAN]

sandim

Personaly.......I think you now have a better approach to the situation as I was reading your post in # 11 of this thread.

Suspension has been a valuable tool for me to bring awareness to the severity of late and non payments....enough people are late.......how do you pay your bills?

Also.....there is greater value in making a phone call than sending letters........Me?.....I honestly can't stand the phone......I find it's the quickest way to resolve anything......Letters and notices have their place as well....documentation is very important.

I'm going to finish with this..........You worked, completed the task, must be paid