Non paying customers!!
- Thread starter The motor guy
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You could warn them (and do if they fail to pay) their details will be passed on to all local business. As long as you are strictly factual, this is perfectly legal.
Let them know if they are struggling financially that would be prepared to negotiate a discount (if it went to court and they prove they have no means to pay, they would only have to pay a tiny token amount anyhow). Better to get $10 for a $30 job or $30 for a $170 job than nothing at all.
Let them know if they are struggling financially that would be prepared to negotiate a discount (if it went to court and they prove they have no means to pay, they would only have to pay a tiny token amount anyhow). Better to get $10 for a $30 job or $30 for a $170 job than nothing at all.
If you intend to charge interest on past due accounts, be sure to state the terms on every invoice.
Actually charge the interest on past due accounts, and update the invoice to reflect the new amount due.
1, 1.5, 2% per month are reasonable rates. You don't want to go too high because you can run afoul of usury laws in your jurisdiction.
I find phone calls to be less than ideal; mailing invoices is better.
After 90 days past due, escalate your collection process, whatever you decide that may be (small claims; selling the debt at a discount; etc.
If you are normally out and about doing your business activities, knock on doors when it's convenient for you to do so (nearby doing another job, after work, weekends, etc).
Spend some effort collecting, but don't spend *too much* effort; there is no point in wasting many hours on a debt you may not collect. Escalate instead.
Keep track of your collection efforts ... any amount of money you spend collecting (even postage) is also due and payable when you go to small claims court. So if you make a phone call, make a note of the details, and charge 15 minutes of your time as a collection cost (for example).
Actually charge the interest on past due accounts, and update the invoice to reflect the new amount due.
1, 1.5, 2% per month are reasonable rates. You don't want to go too high because you can run afoul of usury laws in your jurisdiction.
I find phone calls to be less than ideal; mailing invoices is better.
After 90 days past due, escalate your collection process, whatever you decide that may be (small claims; selling the debt at a discount; etc.
If you are normally out and about doing your business activities, knock on doors when it's convenient for you to do so (nearby doing another job, after work, weekends, etc).
Spend some effort collecting, but don't spend *too much* effort; there is no point in wasting many hours on a debt you may not collect. Escalate instead.
Keep track of your collection efforts ... any amount of money you spend collecting (even postage) is also due and payable when you go to small claims court. So if you make a phone call, make a note of the details, and charge 15 minutes of your time as a collection cost (for example).
Your post says it's only been a week or less? Give it some time.
Originally Posted By: Wolf359
Originally Posted By: motor_oil_madman
Any reason why I couldn't go and talk to the neighbors and casually mention how their neighbor ripped me off? I figure, hey if you can't collect the money, at least embarrass them in front of the neighbors.
Sure go ahead. I have tenants that are behind on the rent and they get indignant when I mention it to their relatives or friends or other tenants and think there's some law that's suppose to make that private. There isn't any. I usually point that out and then mention that I thought maybe they'd help them out if they knew. Trump has plenty of people he hasn't paid and there's no way he can shut them up. Lawsuits over unpaid debts are public record.
Maybe ask them perhaps their neighbor could help them out, maybe you'll go ask them if they're willing to loan them some money.
Yep. Online court of clerk website can find all the evictions of that non paying tenant.
In a cash business like lawn care I would only accept cash BEFORE doing the job.
Originally Posted By: motor_oil_madman
Any reason why I couldn't go and talk to the neighbors and casually mention how their neighbor ripped me off? I figure, hey if you can't collect the money, at least embarrass them in front of the neighbors.
Sure go ahead. I have tenants that are behind on the rent and they get indignant when I mention it to their relatives or friends or other tenants and think there's some law that's suppose to make that private. There isn't any. I usually point that out and then mention that I thought maybe they'd help them out if they knew. Trump has plenty of people he hasn't paid and there's no way he can shut them up. Lawsuits over unpaid debts are public record.
Maybe ask them perhaps their neighbor could help them out, maybe you'll go ask them if they're willing to loan them some money.
Yep. Online court of clerk website can find all the evictions of that non paying tenant.
In a cash business like lawn care I would only accept cash BEFORE doing the job.
https://en.wikipedia.org/wiki/Fair_Debt_Collection_Practices_Act
You can't just do anything and you could wind up losing out. Deadbeats are better at being deadbeats than you sound like you are at collecting.
Pursue the property lien angle. If I rent a car and get parking tickets, Hertz has an avenue to come after me for the money. The landlord will pay you to go away if you play your cards right... and maybe take it from the deadbeat's security deposit.
You need to balance customer service, and the small amount of credit you extend. I learned this as a paperboy at age 12 when customers wanted to pay monthly instead of weekly. THis is the difference between white linen dining where you get the bill at the end of the meal and can use American Express vs a Bodega where you pay through a slit in a bulletproof window before they start cooking. Your honest customers are lazy... which is why they don't want to mow... which means they might take offense with you prebilling before every service.
You can't just do anything and you could wind up losing out. Deadbeats are better at being deadbeats than you sound like you are at collecting.
Pursue the property lien angle. If I rent a car and get parking tickets, Hertz has an avenue to come after me for the money. The landlord will pay you to go away if you play your cards right... and maybe take it from the deadbeat's security deposit.
You need to balance customer service, and the small amount of credit you extend. I learned this as a paperboy at age 12 when customers wanted to pay monthly instead of weekly. THis is the difference between white linen dining where you get the bill at the end of the meal and can use American Express vs a Bodega where you pay through a slit in a bulletproof window before they start cooking. Your honest customers are lazy... which is why they don't want to mow... which means they might take offense with you prebilling before every service.
As a home owner, I'm not paying until the work is done. I've had too many lawn guys not show up or fail keep to the agreed schedule.
Non-paymnent is part of doing business. You just have to accept a certain loss will occur.
Harassing someone by calling repeatedly or or at 3am will not work well for you. You are moving from collecting a debt to harassment.
Non-paymnent is part of doing business. You just have to accept a certain loss will occur.
Harassing someone by calling repeatedly or or at 3am will not work well for you. You are moving from collecting a debt to harassment.
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AZjeff
$50 Site Donor 2023
Train wreck still in progress...
Read ArticDriver's post 3 times, he nailed it.
Read ArticDriver's post 3 times, he nailed it.
Originally Posted By: Wolf359
Originally Posted By: Chris142
We are cash up front or colateral.if we have your car in the shop.
No recores without full payment. We have too many recored radiators sitting around never claimed. And they dont fit anything popular so we cant sell them.
Can't you sell them on eBay? I see some listing sitting on there for months.
we have tried. They are weird sizes. Custom built to customers specs. Like a 32 ford with a chopped hood so that one will only fot a 32 ford with a hood thats been chopped 2.75 inches.
I also have a couple that will only fit the LLV the mail person drives. They asked us to get those then they retired that particular model truck and they dont sell the worn out ones to the public.
Originally Posted By: Chris142
We are cash up front or colateral.if we have your car in the shop.
No recores without full payment. We have too many recored radiators sitting around never claimed. And they dont fit anything popular so we cant sell them.
Can't you sell them on eBay? I see some listing sitting on there for months.
we have tried. They are weird sizes. Custom built to customers specs. Like a 32 ford with a chopped hood so that one will only fot a 32 ford with a hood thats been chopped 2.75 inches.
I also have a couple that will only fit the LLV the mail person drives. They asked us to get those then they retired that particular model truck and they dont sell the worn out ones to the public.
Originally Posted By: aquariuscsm
Is this something you'll need to file a police report on?
Police report? This is a civil matter. The cops will burn rubber leaving so fast your head will spin. Cops take reports on criminal matters. Lawn mowing debt does not fit that category.
Is this something you'll need to file a police report on?
Police report? This is a civil matter. The cops will burn rubber leaving so fast your head will spin. Cops take reports on criminal matters. Lawn mowing debt does not fit that category.
Originally Posted By: Johnny2Bad
If you intend to charge interest on past due accounts, be sure to state the terms on every invoice.
Actually charge the interest on past due accounts, and update the invoice to reflect the new amount due.
1, 1.5, 2% per month are reasonable rates. You don't want to go too high because you can run afoul of usury laws in your jurisdiction.
I find phone calls to be less than ideal; mailing invoices is better.
After 90 days past due, escalate your collection process, whatever you decide that may be (small claims; selling the debt at a discount; etc.
If you are normally out and about doing your business activities, knock on doors when it's convenient for you to do so (nearby doing another job, after work, weekends, etc).
Spend some effort collecting, but don't spend *too much* effort; there is no point in wasting many hours on a debt you may not collect. Escalate instead.
Keep track of your collection efforts ... any amount of money you spend collecting (even postage) is also due and payable when you go to small claims court. So if you make a phone call, make a note of the details, and charge 15 minutes of your time as a collection cost (for example).
Although it is true that you can be awarded for your time attempting to collect a debt, the simple fact remains that you can't get blood from a turnip.
A smalls claims judgement in favor of the OP is not a guarantee of payment.
Does the OP think he is the only person this customer has failed to pay?
I have seen this before and eventually the delinquent customer stacks up several debts and collections and files for bankruptcy.
As for telling the neighbors...why? Why introduce your business to other people in such a negative manner? And its none of the neighbors interest anyway, they have their own problems and they are neighbor of that guy 24/7 so they are not going to hurt that relationship to defend you.
Listen, its a rotten deal, it feels like [censored] to get taken advantage of. I get it. But chalk it off and focus on the positive. Every business has to factor in some amount of loss. Its simply the cost of doing business. Figure out how to limit your losses for the future. Maybe a discount for paying in advance or signing a 6-month service contract.
I feel for you. You did good work. You treat people fair and you have a right to expect that in return...but let it go.
If you intend to charge interest on past due accounts, be sure to state the terms on every invoice.
Actually charge the interest on past due accounts, and update the invoice to reflect the new amount due.
1, 1.5, 2% per month are reasonable rates. You don't want to go too high because you can run afoul of usury laws in your jurisdiction.
I find phone calls to be less than ideal; mailing invoices is better.
After 90 days past due, escalate your collection process, whatever you decide that may be (small claims; selling the debt at a discount; etc.
If you are normally out and about doing your business activities, knock on doors when it's convenient for you to do so (nearby doing another job, after work, weekends, etc).
Spend some effort collecting, but don't spend *too much* effort; there is no point in wasting many hours on a debt you may not collect. Escalate instead.
Keep track of your collection efforts ... any amount of money you spend collecting (even postage) is also due and payable when you go to small claims court. So if you make a phone call, make a note of the details, and charge 15 minutes of your time as a collection cost (for example).
Although it is true that you can be awarded for your time attempting to collect a debt, the simple fact remains that you can't get blood from a turnip.
A smalls claims judgement in favor of the OP is not a guarantee of payment.
Does the OP think he is the only person this customer has failed to pay?
I have seen this before and eventually the delinquent customer stacks up several debts and collections and files for bankruptcy.
As for telling the neighbors...why? Why introduce your business to other people in such a negative manner? And its none of the neighbors interest anyway, they have their own problems and they are neighbor of that guy 24/7 so they are not going to hurt that relationship to defend you.
Listen, its a rotten deal, it feels like [censored] to get taken advantage of. I get it. But chalk it off and focus on the positive. Every business has to factor in some amount of loss. Its simply the cost of doing business. Figure out how to limit your losses for the future. Maybe a discount for paying in advance or signing a 6-month service contract.
I feel for you. You did good work. You treat people fair and you have a right to expect that in return...but let it go.
There are rules you need to follow to collect debts. Like no calls after 8 pm.
I knew a snow plow guy who would plow an enormous pile of snow in people's driveway if they did not pay.
I knew a snow plow guy who would plow an enormous pile of snow in people's driveway if they did not pay.
Originally Posted By: Donald
There are rules you need to follow to collect debts. Like no calls after 8 pm.
I knew a snow plow guy who would plow an enormous pile of snow in people's driveway if they did not pay.
The snow plow guy you knew was breaking the law the by doing this (plowing on a public roadway) and also could be arrested for criminal trespass if he was on private property.
The reality is right now the failure to pay for lawn service is a Civil matter only...if the OP starts doing things that are illegal then he is in violation of criminal codes and the police will get involved. Its never a good thing when police want to pay you a visit.
Come on guys. If the OP wants to operate a "Professional Lawn Service" business then he needs to act "Professional".
Not all ghetto or backwoods.
There are rules you need to follow to collect debts. Like no calls after 8 pm.
I knew a snow plow guy who would plow an enormous pile of snow in people's driveway if they did not pay.
The snow plow guy you knew was breaking the law the by doing this (plowing on a public roadway) and also could be arrested for criminal trespass if he was on private property.
The reality is right now the failure to pay for lawn service is a Civil matter only...if the OP starts doing things that are illegal then he is in violation of criminal codes and the police will get involved. Its never a good thing when police want to pay you a visit.
Come on guys. If the OP wants to operate a "Professional Lawn Service" business then he needs to act "Professional".
Not all ghetto or backwoods.
Originally Posted By: bubbatime
Originally Posted By: aquariuscsm
Is this something you'll need to file a police report on?
Police report? This is a civil matter. The cops will burn rubber leaving so fast your head will spin. Cops take reports on criminal matters. Lawn mowing debt does not fit that category.
THIS.
Originally Posted By: aquariuscsm
Is this something you'll need to file a police report on?
Police report? This is a civil matter. The cops will burn rubber leaving so fast your head will spin. Cops take reports on criminal matters. Lawn mowing debt does not fit that category.
THIS.
Costs more to file for small claims court than the debt is worth.
Require pre-payment. If they won't, they probably never will......
Require pre-payment. If they won't, they probably never will......
I agree, every business experiences a certain percentage of loss. This should be built into the price.
It's infuriating when people won't pay or won't do the right thing. I have an outstanding bill for $1500. The deadbeat went through hard times and will never pay. I did my research on him and he lost a number of court cases, and still refused to pay!
In smaller matters, the courts will not ensure payment. This guy defaulted on his Harley, his Snap-On tool debt and some local debts. He paid none of them!
Why would I bother with court? It's a waste of my time and resources. He will lose, and won't pay. What good is that? I can then put a lien on his home like the others? He's upside-down on his house, has no plans to move and I'll never see my money.
I can write it off, so that's what I do. Life is not always perfect.
It's infuriating when people won't pay or won't do the right thing. I have an outstanding bill for $1500. The deadbeat went through hard times and will never pay. I did my research on him and he lost a number of court cases, and still refused to pay!
In smaller matters, the courts will not ensure payment. This guy defaulted on his Harley, his Snap-On tool debt and some local debts. He paid none of them!
Why would I bother with court? It's a waste of my time and resources. He will lose, and won't pay. What good is that? I can then put a lien on his home like the others? He's upside-down on his house, has no plans to move and I'll never see my money.
I can write it off, so that's what I do. Life is not always perfect.
Originally Posted By: Donald
There are rules you need to follow to collect debts. Like no calls after 8 pm.
I knew a snow plow guy who would plow an enormous pile of snow in people's driveway if they did not pay.
Plow them in "because" and when they can't get out to get a sick kid to the hospital see what happens, Sparky.
There are rules you need to follow to collect debts. Like no calls after 8 pm.
I knew a snow plow guy who would plow an enormous pile of snow in people's driveway if they did not pay.
Plow them in "because" and when they can't get out to get a sick kid to the hospital see what happens, Sparky.
Originally Posted By: bubbatime
^^ Yeah if he wont pay his bills, how about you go into his garage or house and claim your $1500 back in merchandise. Not kidding.
I think you have to hire a sheriff to do that or however that works in the state. Or if they're working, you garnish their wages. But that's tricky because a real deadbeat will be paid in cash or they won't make enough money to garnish. I think when I was in the courthouse last, they wouldn't do it if they make less than $400 a week.
^^ Yeah if he wont pay his bills, how about you go into his garage or house and claim your $1500 back in merchandise. Not kidding.
I think you have to hire a sheriff to do that or however that works in the state. Or if they're working, you garnish their wages. But that's tricky because a real deadbeat will be paid in cash or they won't make enough money to garnish. I think when I was in the courthouse last, they wouldn't do it if they make less than $400 a week.
Let it go.
It's called an occupational hazard.
You profit by allowing customers on the "bill me later" scenario. If you were to force everyone to pay up front, you would have less customers and less business.
Write off what happened as a cost of doing business and forget about it.
Being stiffed is a [removed] deal, but there is nothing that you can effectively do about it at this point.
The thing to do from now on is to try and make sure that your clients are prepared to pay upon the completion of the work. They don't have to be uncomfortable with paying for work that is not complete, and you don't have to worry about getting paid.
The fact that you literally have no idea what happened to one of your clients tells me you need to have better communication with them. Confirm appointments before fulfilling service, and make sure that they are expecting to pay the amount they should.
Silently performing your duties and then sending your bill is a good way to be seen as an appliance or service, instead of a professional human being. They need to be constantly reminded that a human being came to perform a service for them and made an effort.
When I send mechanics to perform a dockside scheduled service, the client is getting an email, phone call, and text message alerting them to the fact that mechanics with a name are coming to perform service, and to confirm the time and details are acceptable.
Not trying to be a **** Van Dyke here. I hate to see small businessmen get abused, and that's the best advice I have for making sure it doesn't happen again. It's very easy for both landscapers and mechanics to be seen as objects rather than people, so I kind of have an idea where your problem is starting.
It's called an occupational hazard.
You profit by allowing customers on the "bill me later" scenario. If you were to force everyone to pay up front, you would have less customers and less business.
Write off what happened as a cost of doing business and forget about it.
Being stiffed is a [removed] deal, but there is nothing that you can effectively do about it at this point.
The thing to do from now on is to try and make sure that your clients are prepared to pay upon the completion of the work. They don't have to be uncomfortable with paying for work that is not complete, and you don't have to worry about getting paid.
The fact that you literally have no idea what happened to one of your clients tells me you need to have better communication with them. Confirm appointments before fulfilling service, and make sure that they are expecting to pay the amount they should.
Silently performing your duties and then sending your bill is a good way to be seen as an appliance or service, instead of a professional human being. They need to be constantly reminded that a human being came to perform a service for them and made an effort.
When I send mechanics to perform a dockside scheduled service, the client is getting an email, phone call, and text message alerting them to the fact that mechanics with a name are coming to perform service, and to confirm the time and details are acceptable.
Not trying to be a **** Van Dyke here. I hate to see small businessmen get abused, and that's the best advice I have for making sure it doesn't happen again. It's very easy for both landscapers and mechanics to be seen as objects rather than people, so I kind of have an idea where your problem is starting.
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Originally Posted By: motor_oil_madman
I've had pretty good luck with people not ripping me off, but unfortunately I'm pretty sure I've gotten ripped off twice now in the last week or so.
What are good ways to collect money without going to a collection agency? One guy owes me $30 the other $170.00 This is for lawn care business. In the whole grand scheme of things it's not really enough to worry about, but obviously you have to draw the line. I'm starting to require payment upfront from now on for customers I don't know. The other problem is the amounts are so low I highly doubt a collection agency would bother with it. Can you be your own collection agency? Just keep calling and blowing up their phone with calls?
In the last week or so? You can't wait a few weeks to get paid?
I've had pretty good luck with people not ripping me off, but unfortunately I'm pretty sure I've gotten ripped off twice now in the last week or so.
What are good ways to collect money without going to a collection agency? One guy owes me $30 the other $170.00 This is for lawn care business. In the whole grand scheme of things it's not really enough to worry about, but obviously you have to draw the line. I'm starting to require payment upfront from now on for customers I don't know. The other problem is the amounts are so low I highly doubt a collection agency would bother with it. Can you be your own collection agency? Just keep calling and blowing up their phone with calls?
In the last week or so? You can't wait a few weeks to get paid?
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