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General Business Discussions

A place to talk about general business discussions.
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  #1  
Old 05-19-2006, 08:54 PM
tiedeman
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Why is it that whenever my gut tells me that I am going to have problems with new customers, that it always happens like 99.9% of the thing?

Perfect example. Picked up a new customer about a month ago. Did some overseeding in their lawn and a weed/feed application. Came out to around $170. I still have not received payment from them yet and it was due on the 15th. When I met them I just had this feeling that they would try to stiff me or be late payers. I sent out a past due notice tomorrow, and if I don't get payment by next Wednesday, they are done.
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Old 05-19-2006, 09:05 PM
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Lawn care business tipsLawn Care Business Book
What kind of signs made you worried about this customer?
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Old 05-19-2006, 09:13 PM
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Little things:
1. *The appearence of the inside of the house (whether there are dirty dishes, clothes scattered about, dust on bookshelves and stands, etc.
2. *The appearance of the outside of the house (whether it has been mowed rently, how much pet damage is done outside)
3. *Toys. *Now from my opinion, the more toys someone has, the harder it will be to get payment from them. *I mean like snowmobiles, four wheelers, etc.
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Old 05-19-2006, 09:22 PM
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Very interesting.

So maybe the more toys they have, the less money they have to pay for services?
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Old 05-19-2006, 09:54 PM
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I think so. I think that they are so far in debt that they have problems paying bills. Now not everybody is like this though. Some people have lots of toys, lots of money, and makes the payments on time, but from just "my" experience, it's the other way around
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Old 05-19-2006, 10:42 PM
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I am sorry about this happening.

How will you handle it if the customer doesn't follow through with payment?
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Old 05-20-2006, 01:10 AM
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I will usually send them one past due notice, and give them 30 days. If I haven't received anything in the mail, then I send another past due notice with a letter stating that I will turn it over to a collections agency and/or small claims court
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Old 05-21-2006, 06:46 PM
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Let us know how this turns out.

I am sure others reading this can learn from it.
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Old 05-22-2006, 05:23 PM
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Anymore this is a reason that I want people to place a credit card on file
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Old 05-22-2006, 05:25 PM
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That is not a bad idea at all. In fact what if you instituted a policy where if a job was over $X then a customer had to give a credit card number?
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