[MaintenanceMike]

What is the best way for handling problem customers? I'm having a problem getting paid, This particular customer owes me $365.00 for cuts that I did for him in the begining of the mowing season,

I have mailed him bills numerous times with no response, I even sent 2 "nice" asking if there was a problem but got no respnse

On several occasions I even personally paid a visit but he never answers his door or isn't at home ,


What should my next step be

[NCSULandscaper]

either a property lein or small claims court. I think i would shoot for small claims court personally, most of the time they will pay before the trial date.

Also are you adding any late payment fees and interest to the bill? If not then you should be.

[Stonehenge]

Do as much as your contract will allow, including the lien and small claims suit, as NCSU suggests. I would certainly try by phone, and try to keep things nice as you've done, asking first if there's been a problem, later explaining that there is a balance due and you'd like to know when you can expect payment.

You always want to keep things civil for as long as you can, because as soon as you get ugly, you can't ever go back, and things always go downhill from there pretty quick.

[Bill Schwab]

Easy. Bill early and often, and don't le anyone get more than a month out before you stop service. We used to bill for the entire month of service on the 1st of each month. The bill was due on the 30th of that month. If I did not get paid by the time I ran the next months bills, I was on the phone and even made special stops. If they were not home, I told them to leave it under a mat, or somewhere we could get it. Any extra work was billed after completion and added to the balance. An updated statement was sent or placed at the clients home. With the exception of a very small few, we nevr really had problems after we billed this way. W even did commercial accounts like that. Otherwise you work a month, then bill, then wait yet another month, so in effect you are allowing net 60...So, who pays the juice on that if you don't get a handle on it?

[cutntrim]

I receive a series of post-dated cheques from residential customers (April-October) that are dated the 1st of each month. They send them in March. Cuts way down on billing and guarantees (in theory) that I'm always paid on-time.

Commercials are invoiced as Bill stated, monthly on the 1st of the month net 30 days. There are a couple of accounts that take 45 days to pay, but I allow for that.

[Stonehenge]

cutntrim - I would think you'd need to have established a pretty high trust level to get them to cut you a bunch of checks in advance of the work you'll do over the following several months.

Kudos for being able to dit - but I'd want to know how you built that trust that people would be okay with those kinds of terms more than anything else.

[cutntrim]

Hmm. Well my partner and I started out many years ago by asking that each week's payment be left in the mailbox for when we arrived. So I guess I've always required payment in advance. It just naturally progressed to payment for the whole month in advance and to post-dated cheques for the season. Very few people have ever questioned it, and when they do I reply by saying that that's the way I choose and have always chosen to run my business. It means I don't have to worry about chasing around each person for payment each month, and they don't have to remember to pay me. Any work above and beyond the normal maintenance fee is billed seperately (usually T&M).

Up until this year I did not send a formal contract to residential customers for lawn maintenance. Their post-dates, a renewal letter and my word was the contract. This spring I sent a contract to be returned along with their post-dates. Should a new customer have concerns about sending post-dates, I'll offer to give them a couple referral customers (often their neighbours) to call if they are leery about our trustworthiness. I've never had anyone take me up on the offer.

When I order Blue Jays tickets I pay in advance and don't question as to whether or not the games will be played. My next game (flex pack) is September 20th. I paid for that ticket (along with the other 5 games) back in March, but I know that the Jays will take the field at 7:07p.m. on the 20th, and Mr. Jones knows that we'll be their this Friday to cut his lawn, just as we have each Friday (weather permitting) since the 1st of May.

[cutntrim]

Another thought occured to me, and that is that my professionalism probably makes it easier for new customers to accept paying in advance. I'm not a no-name-fly-by-night type operation. I'm a registered business, fully licensed and insured, advertise in newspapers, phone directories, and the internet using that same registered business name. I return calls for quotes and show up on time wearing professional logo'd attire and driving a clean, logo'd vehicle and leave them with a computer printed quotation/contract to sign if in agreement.

That would be a lot of trouble to go through just to screw someone out of a few hundred bucks for a month of services not performed. I'd also be pretty easy to track down if I did screw them over.

[GLAN]

Mike

I hope you discontinued service....

Ok, so you tried calling, visiting and even a couple nice letters. Yet no payment.

Now you send a more demanding letter. Send it registered mail, return reciept. Allow 15 days or 30 to pay. After that deadline and payment has not been made, in the letter you inform them that you will have no other alternative than to file with small claims court.

I wouldn't allow 30 days at this point.

If it comes to it............follow through and file with small claims.


Or........you can turn this over to a collection agency......not all agencies are the same. Some will only send a letter or two on your behalf. Others will go through all the way to reporting the dept to credit reporting agencies like TRW. And can provide legal representation on your behalf......Collection agency fees can run as high as 50% the amount collected.

[greenman]

You guys are telling him to invoice early and often........and mentioning contracts, but I am thinking that Mike is talking about lawn maintenance. Can he sue in small claims with no written agreement?

[Bill Schwab]

The sick part and good part of America and the bastardized verson of British common law we use, is that we can sue anyone, anytime any place...And, not be responsible for the other guys attorney fees.

Anytime I ever entered into court, ( not simply used notice to apear to intimidate) I have always weighed what the costs and distraction would cost in terms of lost billable time, positive movement forward, and productive activity. Anytime you enter a courtroom, that is what it cost you. Now, if we only would award attorney fees to those who file frivelous suites, or were found in the wrong, 70% of all this idiocy would stop, but the trial lawyers associations will see to it that never happens.

So, before court, weigh out the cost in what I mentioned above. I know for principle alone, you want to nail thier rear end to a wall. But those nails might just cost you more than what you could make by simply getting over the situation.

[drizzay]

Mike sorry about about your trouble but keep your head up and move forward. As for me ahad a few dead beats but i learned fast when I do business its always under a written contract. And I insist that my monthly payment is made on the 1st or by the 10TH of each month. And first payment of the contract is up front. I use written contracts not for the purpose of sueing, but I heard that some of these collection agents would buy those contract for about 25% on the dollar. Some money is bettr than none. I havn't had to go that far yet, but after the tenth day I'll give them a call. But after the middle of the month if I don't have a payment or a arrangment I don't cut the property. After two weeks in the middle of summer their're going to have to make a move, either pay me, pay someone else or do it theirself. Most of my customers are young professional who work alot and sometime just forget. I also found out that accepting credit cards is a big help most use their debit cards to make payment. i have the mobile unit and that came in handie because with one customer I stop by her job and she just swipes her card. and I'm on my way.

[Fine Edge]

I don't know about other states but here in NC, I took a builder to small claims and won. Hurray!! Were is my $1900.00? Still in the builder's pocket, that's where. With all my wasted time in court ( 3 different times ) , gas, lost wages & stupid paperwork, I really wondered if it was even worth it since the Small Claims Court can't MAKE him pay me. So, I do some more research in the archives, file a lien & guess what? He's already on the books as owing 6 -7 other companies who he's lost to in court.
If I wasn't such a nice person, I'd be calling my cousin Vinny!
Good luck.

[pondman300]

I have had the same problem a few times. Just this last summer we put in a good size stone patio and walkway at the completion of the job the home owner was no where to be found they had taken a cruise to South America imagine my surprise here's 7,000 dollars dancing and having a blast on the love boat. What I did was leave a few messages on their voice mail, nice at first but when I got no reply after about 2 weeks most people check their voice mail at some point I let them know we would soon be taking a trip to the local court house with some fee's included. Needless to say after some gripes and moans I eventually got paid. Some people are just that way it would be great if they came with a sign on their forehead saying BEWARE I DON'T LIKE TO PAY FOR GOOD SERVICE!

[Dale Wiley]

Contracts, contracts, contracts....

We use a one page contract with a QAR document for jobs under $ 1,500.00

We have a maintenance contract with specs and frequency's.

We have a 6 page construction contract with 4 pages of general conditions. We carefully spell out EVERYTHING we are going do.

We do the job right, we get paid under THE TERMS OF THE CONTRACT. Our construction contracts have very specific clauses that protect us and our profits.

I do not hesitate to file a lien or go to small claims court on the smaller stuff. I very seldom have to do this. Maybe once every 3 years. I get a lien on the property, they may not want ot pay me, but when they want to sell or re fi, they find a lien during the title search, and I get my money with 9% interest. I had one where the interest was more than the originalamount owed.

Good tight contracts, payment clauses, general conditions make life a lot less stressfull.