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General Business Discussions

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  #1  
Old 06-12-2006, 03:23 PM
tiedeman
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What would you guys honestly do?

I picked up a new customer about 6 weeks ago. She has me mow her property every 2 weeks because she can't afford to have it done once a week. Well, I sent out her first invoice almost a month ago and it's due on June 14th. Since I mailed out that invoice I have mowed it once more, and it was due for another mowing today, but I am holding off until I receive payment. I know that she still has two more days to pay it, but in my opinion it's better to wait and not do the work, instead of doing the work and never getting paid.

Would you guys still go ahead and do the work though if it was schedule for today, even though she hasn't paid the first bill yet, but it is not due for another 2 days?
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  #2  
Old 06-12-2006, 03:37 PM
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I think this falls into the category of "gut feeling."

Your gut feeling is telling you something may be wrong with this customer's ability to pay for services rendered so until they develop a relationship with you, you are being cautious.

I don't blame you one bit and would do the same.
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Old 06-12-2006, 06:36 PM
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What I am thinking about doing is calling her up and telling her, "I will be there tomorrow to mow, but before I mow, I need payment from the first invoice."
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Old 06-12-2006, 07:02 PM
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I would think that is fine. She hasn't proven to you yet that her credit is good. Why over extend yourself and provide more services when you have yet to be paid?
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Old 06-12-2006, 07:16 PM
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That sounds like a good plan, this way your up front about it and no one gets hurt.

I'm having the same situation right now. One of my new customers has yet to paid, this is the first invoice for him, and it's due in 3 days. He's up for mowing tomorrow, but per contract service will be cancelled after due date, so I'll mow it up tomorrow and if he doesn't pay next week it's done and he'll get a letter.
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Old 06-15-2006, 10:57 PM
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You may want to suggest having her tape a check to the door the day of her mow, as you're "Doing this now to help offset gas prices and keep post-billing costs down". I started last year with the check-on-door method, with about 6 people only that I actually sent invoices to. This year I have spent a total of zero on a stamp to send out an invoice, and 98% of my customers are on auto bill on their credit card.

Why is it that so many people in the lawn industry (mowing) extend credit to people they don't know?
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Old 06-15-2006, 10:59 PM
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Quote:
Originally Posted by [b
Quote[/b] ]Why is it that so many people in the lawn industry (mowing) extend credit to people they don't know?
This is an excellent point and we all need to reflect on this.

Many times LCOs do this, I think, because they either don't know better, don't feel they have a choice, or simply feel it is the way things are done.
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Old 06-15-2006, 11:10 PM
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I know around here, the credit card billing wouldn't fly. Too many people would be afraid to do it (thats where that tech savy area comes in again). The only reason I do monthly billing is because it's easy, I don't have to worry about checking for a check each week, people only have to write one check a month, I only make one deposit a month. But on the other hand it's rough for new people, I'm still waiting on 2000 in AR for last month.
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Old 06-15-2006, 11:12 PM
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Very good points Kurt.
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Old 06-17-2006, 01:38 AM
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A little update on this story, I dropped her as a customer. I wrote her a letter explaining to her that I have a zero tolerance for new customer late payers. New customers bascially have to build a trust with me first, before I allow them to even think about sliding a couple of days.

Anymore though I call up people tell them that they need to pay or all services are stopped. But this lady, repeatedly lied to me about payment
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