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, 03:41 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, 04:00 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, 04:20 PM
CHEESE2009's Avatar
CHEESE2009 CHEESE2009 is offline
Dr. Scott - Ruler of the Underworld
 
Join Date: Mar 2009
Location: Switzerland, Grindelwald
Age: 74
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 04:23 PM.
Reply With Quote
  #4  
Old 02-21-2012, 06:09 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, 02:34 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,683
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, 03:25 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, 04:01 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, 04:33 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, 07:58 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, 10:38 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 09-06-2005 12:40 AM
Late Fees J&R Landscape Gopher Software Support Archived Question & Answers - Read Only 3 08-31-2005 12:34 PM
How to use Late Fees Steve Gopher Software Support Archived Question & Answers - Read Only 8 07-07-2005 01:09 PM
LATE FEES hoghunter Gopher Software Support Archived Question & Answers - Read Only 11 11-15-2004 01:39 PM
late fees Mister Landscaper Gopher Software Support Archived Question & Answers - Read Only 5 08-24-2004 12:57 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Has Obamacare helped or...
Steve
Today 04:37 PM
Today 04:37 PM
by Steve
0 5
Employee job training...
brookline
12-15-2014 08:15 PM
Today 02:09 PM
by SuperiorPower
5 188
I'm BACK!
SuperiorPower
12-16-2014 11:08 PM
Today 02:05 PM
by SuperiorPower
2 104
Repair or replace the...
lxarth
Yesterday 05:07 PM
Today 01:37 PM
by Steve
2 79
Hello from Md
homey
Yesterday 06:55 PM
Today 01:34 PM
by Steve
1 48
what do you "love" to...
calebmoss
07-06-2011 10:05 PM
Yesterday 05:09 PM
by Chilehead
28 8,864
What Fertilizer to Use?
acrajchel
04-07-2014 02:56 PM
Yesterday 01:11 PM
by Steve
23 2,892
Grass hopper mower
ExtremeLawncareServices
12-05-2013 09:51 AM
Yesterday 09:40 AM
by SuperiorPower
34 6,035
Peco Bagger
AGPS
11-18-2014 02:20 PM
Yesterday 09:13 AM
by SuperiorPower
15 1,239
These are the days on...
ExtremeLawncareServices
03-22-2014 10:12 AM
12-15-2014 10:30 PM
by ExtremeLawncareServices
188 16,425
New to Gopher Haul-from...
323k13l
12-12-2014 10:34 PM
12-15-2014 02:58 PM
by Steve
3 232
hi
creteland
12-12-2014 09:06 AM
12-15-2014 01:45 PM
by Steve
5 235
New addition to my small...
googus
12-12-2014 07:36 PM
12-15-2014 07:47 AM
by googus
4 300
Ferris IS700Z
rmccutchan
12-14-2014 01:10 AM
12-14-2014 11:41 PM
by rmccutchan
4 208
Charge what the market...
Billy Goat
12-09-2014 12:39 PM
12-14-2014 06:39 PM
by biglee
20 735
Hi from IL
steveinil
11-25-2014 02:07 PM
12-12-2014 07:18 AM
by steveinil
4 748
Utility Company Right of...
eastsidelandcare
12-11-2014 04:54 PM
12-11-2014 04:54 PM
by eastsidelandcare
0 227
leaf removal
Double J LLC
10-03-2014 05:24 PM
12-11-2014 04:50 PM
by eastsidelandcare
33 3,968
suggestions on full lawn...
Brian3137
12-10-2014 07:18 PM
12-11-2014 03:41 PM
by Steve
6 328
new to me box truck
jrayb39667
03-06-2014 11:20 PM
12-11-2014 09:43 AM
by Sprinkler Buddy
18 3,288
Hello from SW FL!!
5StarLawnscaping
12-05-2014 02:35 PM
12-10-2014 02:45 PM
by WesleySnips
7 562
Echo pb200 blower fuel...
googus
12-06-2014 09:03 PM
12-09-2014 06:35 PM
by Steve
3 410
Facebook
element009
03-23-2011 09:36 AM
12-09-2014 06:24 PM
by Steve
36 9,720
Are you prepared for the...
Steve
12-02-2014 04:13 PM
12-09-2014 06:22 PM
by Steve
7 827
Email Address Name
Just Cuts
12-07-2014 09:49 PM
12-08-2014 03:15 PM
by Steve
3 371
Inspection form
stevef1201
12-07-2014 10:38 AM
12-08-2014 03:10 PM
by Steve
1 367
Truck, Trailer,...
hawthornelawncare
12-23-2011 01:01 AM
12-08-2014 12:37 PM
by jrs.landscaping
108 34,071
Back Pack Blower
Ian Lovejoy
11-09-2014 08:41 AM
12-07-2014 06:35 PM
by stevef1201
24 1,632
Innovation by mandate
bayoubandit
11-29-2014 01:33 PM
12-06-2014 03:27 PM
by SGL1
12 891
Trying something new,...
ExtremeLawncareServices
09-21-2014 10:07 PM
12-05-2014 11:06 AM
by Steve
9 2,197
Good help is hard to find
Hanks Lawn Care Services
11-19-2014 03:27 PM
12-04-2014 01:32 PM
by stevef1201
15 1,372
How many hours is too...
Just Cuts
12-04-2014 09:00 AM
12-04-2014 01:02 PM
by Just for Cuts
6 539
Does this sound like a...
googus
12-03-2014 07:47 AM
12-04-2014 12:37 PM
by Steve
5 613
New website
Chilehead
11-20-2014 04:39 PM
12-04-2014 12:27 PM
by Steve
14 1,155
New website
SGL1
12-02-2014 10:55 PM
12-03-2014 11:17 PM
by BLC7
19 787
Websites, how long...
Dan Tanner
03-09-2014 08:29 AM
12-03-2014 11:12 PM
by SGL1
21 3,153
I Want to buy old...
ExtremeLawncareServices
10-10-2014 11:04 PM
12-03-2014 10:36 PM
by ExtremeLawncareServices
8 1,804
GPS trackers for...
Billy Goat
12-02-2014 06:09 PM
12-03-2014 07:17 PM
by Steve
8 640
My site is on fronts page
tbtigers03
11-14-2014 05:58 PM
12-03-2014 06:31 PM
by SGL1
17 1,368
Hiring Subs over Temps
Billy Goat
12-02-2014 06:26 AM
12-03-2014 01:24 PM
by Steve
3 573
Thanksgiving cards
Steve
11-10-2008 11:57 AM
12-02-2014 11:11 PM
by SGL1
11 9,445
New parking area
ExtremeLawncareServices
11-07-2014 09:47 PM
12-02-2014 02:17 PM
by jrs.landscaping
12 1,416
Pressure Washing...
WesleySnips
07-31-2014 07:13 PM
12-02-2014 08:47 AM
by SGL1
6 1,436
old contracts
bayoubandit
11-29-2014 11:10 AM
12-01-2014 11:20 AM
by Steve
3 658
Hi to you NOTHERNERS
stevef1201
11-11-2014 05:56 PM
12-01-2014 10:54 AM
by Steve
9 1,199
Lawn care truck
Steve
10-10-2009 03:40 AM
12-01-2014 10:45 AM
by Steve
32 15,104
Intuit Quickbooks...
CDLAWNCARE
11-30-2014 10:19 AM
11-30-2014 10:19 AM
by CDLAWNCARE
0 555
Say Hello !!!
Steve
03-19-2007 12:18 PM
11-28-2014 01:36 PM
by Just Cuts
1,196 355,351
Hello from Kentucky
TRV
09-30-2014 06:42 PM
11-28-2014 10:49 AM
by Steve
13 2,244
Happy Thanksgiving!
Steve
11-27-2014 09:48 AM
11-27-2014 09:48 AM
by Steve
0 607
» Popular Tags
4wd aerocore apartment bid apartment lawn care estimate applying bid bob villa bush commercial decorating deliquentaccounts demonstration ditches edging employee problems ferris first truck georgia gopherhaul grass hardscapes hiring how much to charge how to hydraulic installation introduction landscape services lawn lawn care lawn care busines plan lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care seo lawn care website lawn care website seo managing a lawn care business mulch mulch price new business patio install per hour charge podcast profit on employee reo scag v-ride scripts shell snow snow plowing starting a business starting a lawn care business start up lawn care business steep lawns steve sulky theft toro tractor auger trailer mate pro tree truck new used landscape turfgrass consulting up sell employee walk behind won't return wright stander rh
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 05:00 PM.


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

All times are GMT -5. The time now is 05:00 PM.

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