Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Lawn Care, Landscaping, and Property Management Forums > General Talk

General Talk If it doesn't fit anywhere else, post it here.

Late Fees


General Talk

If it doesn't fit anywhere else, post it here.
Reply
 
Thread Tools Search this Thread
  #1  
Old 02-21-2012, 02:41 PM
FaccLndscpng FaccLndscpng is offline
Senior Member
 
Join Date: Sep 2008
Location: Phila PA
Posts: 118
Rep Power: 7
FaccLndscpng is on a distinguished road
Default Late Fees

I am getting ready to send out contracts for this upcoming season and am thinking about increasing my late fees. Right now I only charge 2% compounded on payments 30 past due. What does everyone else charge? I didnít look into it fully yet so I donít know if there is a cap on how much you can charge legally but I am tired of waiting for payments and I think half the people donít mind paying 2% if it buys them some time. Like right now I have a snow removal customer that owes over a grand, and I feel that they are just going to wait it out and just pay me the $20 in late fees, itís not worth it anymore I have way too much overhead (especially with snow removal) to wait on money for months at a time. What does everyone think?
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 02-21-2012, 03:00 PM
willshome willshome is offline
new member
 
Join Date: Jan 2012
Location: Mass
Posts: 865
Rep Power: 0
willshome is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
I give them 10 days or 15% fee every 30 days. At 2% your the cheapest loan out there and you will be the last thing paid. I have had only one customer say "you sound like a bank with that fee" I told her "I plow on time and I only think its fair to get paid on time" when i put it like that she understood
Reply With Quote
  #3  
Old 02-21-2012, 03:20 PM
CHEESE2009's Avatar
CHEESE2009 CHEESE2009 is offline
Dr. Scott - Ruler of the Underworld
 
Join Date: Mar 2009
Location: Switzerland, Grindelwald
Age: 73
Posts: 4,475
Rep Power: 10
CHEESE2009 is on a distinguished road
Default

I think you should only accept post-dated checks.

This way you know you will be paid for the work you do. Imagine this situation;

A client missed the payment due date, yet you have arrived to his property. You decide to cut the lawn.

Problem;

a) Imagine if you had 20 clients like this, how unorganized would you become? Very. Running a business based on 'trust' will destroy you.

b) The client still doesn't pay you. You are beginning to feel ripped off. Your brain starts thinking, "The customer is a nice person, but I just can't keep harassing them for money, they will think I'm a bad person". You continue to mow their lawn half arsed (to feel better about yourself). You let yourself become miserable, and now your quality looks awful aswell.

c) You stop cutting their lawn. The client now calls and makes you feel guilty, "You know you could trust me. I will have the money, promise". You are stuck taking their promise again, or putting your foot down and upsetting the client. Upsetting the client means you have made things awkward between the both of you, you are now unhappy every time you visit them to do your job.


In other words, accept post-dated checks ONLY!

Pros:
Never have the chase a client (security for you)
Client gets to cancel the checks any time (security for the client)

Cons:
None

Last edited by CHEESE2009; 02-21-2012 at 03:23 PM.
Reply With Quote
  #4  
Old 02-21-2012, 05:09 PM
dpld dpld is offline
new member
 
Join Date: Jan 2012
Location: nj
Posts: 885
Rep Power: 0
dpld is on a distinguished road
Default

i charge 10% as soon as it is 10 days past due which starts when they receive the bill and it jumps to 23% after 30 days.
if they complain about the late fee i tell them pay the bill on time and there will be no fee.

i could care less what they think about the fee and frankly, if they can not pay their bill on time i don't even want them as a customer.
Reply With Quote
  #5  
Old 02-22-2012, 01:34 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,431
Rep Power: 10
Steve has disabled reputation
Default

Can you get some/all of them to pay in advance each month?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #6  
Old 02-22-2012, 02:25 PM
FaccLndscpng FaccLndscpng is offline
Senior Member
 
Join Date: Sep 2008
Location: Phila PA
Posts: 118
Rep Power: 7
FaccLndscpng is on a distinguished road
Default

Thanks guys for the info, these are old contracts that I have had for probably 4 years and at the time I just went by another landscaper and one of my suppliers. I just assumed that 2% was probably the norm or the legal limit. I am definitely increasing the fees this season.
As for payment in advance, I would love to but there is so much competition out there that doesnít require payments in advance that I am a little leery that I would lose a job or two. A lot of my property managers are picky, god forbid I make them do a little more work than they are used to. I have put out there that we can do automatic withdraws for the seasonal contracts but no takers. I was thinking about requiring automatic withdraws on the 1st of every month for all seasonal snow work for next year. As everyone knows we are always wrong, we are just supposed to do the work and expect payment when it comes it comes no rules for customers right? If I didnít have your property plowed and clear by 7 am I get complaints all day, but if you donít pay your bill on timeÖoh well deal with it! Must be nice to be a customer huh?
Reply With Quote
  #7  
Old 02-22-2012, 03:01 PM
dpld dpld is offline
new member
 
Join Date: Jan 2012
Location: nj
Posts: 885
Rep Power: 0
dpld is on a distinguished road
Default

Quote:
Originally Posted by FaccLndscpng View Post
Thanks guys for the info, these are old contracts that I have had for probably 4 years and at the time I just went by another landscaper and one of my suppliers. I just assumed that 2% was probably the norm or the legal limit. I am definitely increasing the fees this season.
As for payment in advance, I would love to but there is so much competition out there that doesnít require payments in advance that I am a little leery that I would lose a job or two. A lot of my property managers are picky, god forbid I make them do a little more work than they are used to. I have put out there that we can do automatic withdraws for the seasonal contracts but no takers. I was thinking about requiring automatic withdraws on the 1st of every month for all seasonal snow work for next year. As everyone knows we are always wrong, we are just supposed to do the work and expect payment when it comes it comes no rules for customers right? If I didnít have your property plowed and clear by 7 am I get complaints all day, but if you donít pay your bill on timeÖoh well deal with it! Must be nice to be a customer huh?

those are not the rules and they only become the rules to those who choose to accept them.
what would paying ahead instead of behind change for them ? they have to pay you anyway and after the first bill it is monthly from there just like they are doing now.
no other other type of business is gonna do squat for anyone without some upfront cost why should they expect anything different.

you can not go by what other landscapers do because the fact of the matter is most landscapers are poor businessman and outside of cutting a lawn they don't know the first thing about being in business.

think about every trade out there, they usually have to work for someone in order to learn the industry and learn how to be successful and most landscapers start out as some dude who bought a lawnmower and decides to call himself a landscaper.
who do you want to model your business as, a professional or just some trade jumping hack.

if you present your case to your customers in the proper manner and convey to them that with the rising costs of doing business that you can not longer offer the best possible service and be bank of america at the same time.

ask them if they submit their hours to their boss for the entire month and wait for him to pay them when he feels like it, i doubt it and they would be crying to the department of labor faster then the jews left christ.

i am sure some won't like it but if they don't it's probably more to do with that they want the option of screwing you if need be then about anything else and you probably don't want them as a customer to begin with.

as they say, you got to break some eggs if you want to make a omelette.

after the first visit on every property i service for the year they get a bill for the month and then the bills go out on the 24th of the month thereafter and i work exclusively for high end commercial properties and i have yet had a person quam about it. and i would think a customer that is paying 15 k a month would say something before a lousy homeowner paying a couple hundred dollars a month.

wew, i am glad i got that off my chest, forgive me if i came off too strong but i get worked up when i hear about other guys being nervous about asking for the money they worked their tails off for.
Reply With Quote
  #8  
Old 02-22-2012, 03:33 PM
FaccLndscpng FaccLndscpng is offline
Senior Member
 
Join Date: Sep 2008
Location: Phila PA
Posts: 118
Rep Power: 7
FaccLndscpng is on a distinguished road
Default

I agree with you totally, landscapers are treated like crap. But with the state of the economy many people are jumping through hoops to get work and if myself and another company are charging pretty similar but I require payments in advance I could see the other guy getting the job, unfortunately. With the state of the economy I even started noticing some of the commercial properties in my area being serviced by ďan old man with a pick upĒ, they can have the residentials but now their making their way into the commercials? That isnít right! Thanks for the input guys I hear ya totally.
Reply With Quote
  #9  
Old 02-22-2012, 06:58 PM
dpld dpld is offline
new member
 
Join Date: Jan 2012
Location: nj
Posts: 885
Rep Power: 0
dpld is on a distinguished road
Default

Quote:
Originally Posted by FaccLndscpng View Post
I agree with you totally, landscapers are treated like crap. But with the state of the economy many people are jumping through hoops to get work and if myself and another company are charging pretty similar but I require payments in advance I could see the other guy getting the job, unfortunately. With the state of the economy I even started noticing some of the commercial properties in my area being serviced by ďan old man with a pick upĒ, they can have the residentials but now their making their way into the commercials? That isnít right! Thanks for the input guys I hear ya totally.
if you do a good job, your honest and your customer is happy with your services billing ahead will be a non issue, as i said earlier, they have to pay you anyway and one benefit right off the top they will get is they will be done paying you for the year one month earlier which will be just in time for christmas.
Reply With Quote
  #10  
Old 02-24-2012, 09:38 PM
FaccLndscpng FaccLndscpng is offline
Senior Member
 
Join Date: Sep 2008
Location: Phila PA
Posts: 118
Rep Power: 7
FaccLndscpng is on a distinguished road
Default

I say we go back to voilence, nothing gets you paid quicker!!
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Late Fees AZTLANLC Gopher Software Support Archived Question & Answers - Read Only 1 09-05-2005 11:40 PM
Late Fees J&R Landscape Gopher Software Support Archived Question & Answers - Read Only 3 08-31-2005 11:34 AM
How to use Late Fees Steve Gopher Software Support Archived Question & Answers - Read Only 8 07-07-2005 12:09 PM
LATE FEES hoghunter Gopher Software Support Archived Question & Answers - Read Only 11 11-15-2004 12:39 PM
late fees Mister Landscaper Gopher Software Support Archived Question & Answers - Read Only 5 08-24-2004 11:57 AM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Incorporating &...
WesleySnips
Yesterday 09:39 PM
Yesterday 09:39 PM
by WesleySnips
0 24
Hello from Kentucky
TRV
09-30-2014 05:42 PM
Yesterday 09:21 PM
by TRV
3 141
Mowing the hills
EyeCatchersNow
07-08-2014 12:22 PM
Yesterday 05:57 PM
by Steve
21 1,862
Real Estate??
tbtigers03
09-30-2014 06:43 PM
Yesterday 05:01 PM
by stevef1201
5 197
John Deere z235 Deck
WesleySnips
09-29-2014 06:02 PM
Yesterday 04:38 PM
by WesleySnips
5 248
Sprinkler head guards...
Sprinkler Buddy
09-27-2014 04:55 AM
Yesterday 02:50 PM
by Sprinkler Buddy
6 450
Look out Bob Villa -...
Mr Dave
09-30-2014 10:06 AM
Yesterday 02:19 PM
by Steve
5 218
Question?what should I...
dalvan0
09-24-2014 11:10 PM
Yesterday 01:39 PM
by Steve
17 837
Whe does Mowing season...
jack2048
09-30-2014 07:05 AM
Yesterday 01:38 PM
by jack2048
4 211
Kohler command carb...
ExtremeLawncareServices
09-21-2014 03:09 PM
Yesterday 01:30 PM
by Steve
26 1,175
Help a brother...
tbtigers03
09-28-2014 11:41 AM
Yesterday 01:26 PM
by Steve
7 399
Give Me Your Problems
ellakit
09-30-2014 04:10 PM
09-30-2014 04:10 PM
by ellakit
0 17
Say Hello !!!
Steve
03-19-2007 11:18 AM
09-30-2014 03:53 PM
by ellakit
1,188 336,310
Falling into business
stellarmowing
09-28-2014 04:35 PM
09-30-2014 02:17 PM
by Steve
4 358
hey
sizemorelawncare
09-28-2014 08:12 PM
09-29-2014 03:10 PM
by Steve
2 287
Update on LawnsAway and...
Ian Lovejoy
09-28-2014 10:24 AM
09-29-2014 03:09 PM
by Steve
2 343
Need to figure out how...
tjslawnde
09-28-2014 10:31 AM
09-29-2014 03:05 PM
by Steve
4 353
Aerocore Deck?
wdrdoctor
09-26-2014 06:21 PM
09-29-2014 02:36 PM
by Steve
3 479
Hello from CNY
arazucontracting
09-22-2014 06:07 PM
09-29-2014 02:33 PM
by Steve
3 736
How to price lawn mowing.
jack2048
09-24-2014 04:18 PM
09-29-2014 02:27 PM
by Steve
4 592
Pricing ????
6295danny
01-14-2013 07:54 PM
09-29-2014 02:22 PM
by Steve
35 6,606
30 Inch Push Mowers Pros...
Billy Goat
06-27-2013 08:07 PM
09-27-2014 04:11 PM
by SGL1
30 7,138
Replacing a Shindi T-27
Dan Tanner
09-13-2014 12:59 PM
09-26-2014 04:16 PM
by stevef1201
5 1,117
Looking for feed back on...
ExtremeLawncareServices
09-17-2014 08:38 AM
09-25-2014 09:18 AM
by ExtremeLawncareServices
10 1,144
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
09-25-2014 08:01 AM
by ExtremeLawncareServices
124 9,347
Trying something new,...
ExtremeLawncareServices
09-21-2014 09:07 PM
09-23-2014 11:13 AM
by Steve
4 828
This sucks...
Matther777
09-18-2014 04:56 PM
09-22-2014 08:02 PM
by ExtremeLawncareServices
11 1,203
Not sure, but anyone do...
SnowRemoval2k14
09-22-2014 12:10 AM
09-22-2014 04:49 PM
by Steve
1 773
Tribulations of working...
stevef1201
09-13-2014 08:37 AM
09-22-2014 04:45 PM
by Steve
9 1,104
Mulching beds
Bradcook21
09-21-2014 07:43 AM
09-22-2014 04:43 PM
by Steve
3 842
Scag turf tiger hydrolic...
ExtremeLawncareServices
09-04-2014 10:55 PM
09-22-2014 04:35 PM
by Steve
12 1,470
2014 Gie-expo
ExtremeLawncareServices
08-19-2014 11:22 PM
09-21-2014 09:23 PM
by ExtremeLawncareServices
3 1,507
Mowing 7 acres
avetslawncare
08-31-2014 04:24 PM
09-19-2014 03:29 PM
by acrajchel
6 1,725
snowplowing
jshak40
09-01-2014 07:20 AM
09-19-2014 11:49 AM
by Steve
23 2,157
Lowballers scrubs &...
Darksteel
01-13-2014 07:35 AM
09-18-2014 06:32 PM
by Northwoods Outdoors
58 7,550
Hello from upstate NY!
A&MLawn&Snow
09-18-2014 11:19 AM
09-18-2014 04:10 PM
by Sprinkler Buddy
2 939
Price to apply fertilizer
SS.Lawncare
09-15-2014 11:10 AM
09-18-2014 01:16 PM
by Steve
9 1,122
Trailer tires
J.A.S.LawnService
09-01-2014 10:17 AM
09-17-2014 09:57 PM
by curts lawn care
4 1,556
new to the forum
SGlawncare
09-16-2014 11:20 PM
09-17-2014 08:29 PM
by curts lawn care
3 947
Help With Snow Blowing...
Robertf31
09-13-2014 10:55 PM
09-17-2014 12:34 PM
by Steve
11 1,318
Non-Stop Summer?
SouthallMowing
09-14-2014 10:51 PM
09-17-2014 10:48 AM
by stevef1201
6 1,071
Poll - net income
Dan5082
11-15-2010 08:08 PM
09-16-2014 04:44 PM
by jrs.landscaping
12 3,824
Getting lowballed!
PineHillLawn
06-27-2012 07:23 AM
09-16-2014 01:25 PM
by jrs.landscaping
24 5,563
Compare this summer to...
Steve
09-03-2014 12:52 PM
09-16-2014 11:20 AM
by Hanks Lawn Care Services
15 1,745
thinking about throwing...
veteranslawncaresystems
09-09-2014 10:31 PM
09-15-2014 03:41 PM
by Steve
12 1,472
Hello
Robertf31
09-12-2014 10:34 PM
09-15-2014 03:17 PM
by Steve
2 962
Newbie......Again
Jibber
09-13-2014 12:17 PM
09-15-2014 02:54 PM
by Sprinkler Buddy
2 1,090
need help with starter...
GoGreenerKS
09-12-2014 04:23 PM
09-15-2014 02:25 PM
by Steve
3 1,013
Brake job!
kslawn
08-30-2014 07:49 AM
09-15-2014 02:16 PM
by Steve
12 1,831
Hello
jawnebgoode
08-28-2014 08:37 PM
09-15-2014 02:15 PM
by Steve
3 1,556
» Popular Tags
2wd 4x4 aerocore apartment bid article marketing auger bid billy goat brushcutter care charge collections subcontractor decorating deliquentaccounts equipment rental exmark ferris foreman four wheel drive gopherhaul grass gravely health hills honda how much to charge husqvarna installation john deere quik trac landscape services lawn lawn care lawn care business podcast lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care seo lawn care website lighting brass outdoor lights managing a lawn care business marketing mechanic monthly mulch mulch price new buisness new business podcast promotion pto push versus ride savannah scag schedule scripts seo snow snow plowing starting a business starting a lawn care business stihl sulky theft theft of services toro toro grand stand trailer trimmer rack walk behind walker
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 03:07 AM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 03:07 AM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy