1. Welcome to PlowSite. Notice a fresh look and new features? It’s now easier to share photos and videos, find popular topics fast, and enjoy expanded user profiles. If you have any questions, click HELP at the top or bottom of any page, or send an email to help@plowsite.com. We welcome your feedback.

    Dismiss Notice

I wonder if people pay think they dont have to pay

Discussion in 'Commercial Snow Removal' started by go plow, Feb 23, 2006.

  1. go plow

    go plow Senior Member
    Messages: 322

    I go through this every year, if they see that we are not getting snow for a while they dont rush to pay me!!!! i also get this around April for the march plowings.... i wish that this state would be more realistic on the amount we can charge for late fees. in ct its 1.5 per 30 days, like that will scare them!!!
    i dont understand how banks, credit card companies can legally charge 20% and such but we the people that keep this economy going cant !!! i wish i could call my clients employers to tell them that seeing that they dont pay their bills, they dont really need a pay check at the end of the week !!!! lol
    thanks for letting me vent............:angry:
  2. exmark1

    exmark1 PlowSite.com Addict
    Messages: 1,320

    I have the same problem! I go through it with some customers at the end of the summer as well, they don't rush to pay the last bill since it's winter and they won't need anything from me until the next year. Of coarse if we provide them with snow service they are normally alot better!
  3. Rappa

    Rappa Member
    Messages: 84

    If you state in your contract what your late fees will be... Can't you pretty much charge whatever you want if they sign the contract??? Contract is a contract isn't it?
  4. Joe D

    Joe D Senior Member
    Messages: 605

    I think late fee and intrest on late payments are different rules. I would look into the max alowable late fee you could charge.
  5. justme-

    justme- 2000 Club Member
    Messages: 2,138

    you can charge what you want as a late FEE, however when you're charging intrest on a balance due the state, whichever you happen to live in, deturmines the maximum amount.

    Credit cards charge you a flat fee when you miss a payment, say $10.00. They charge intrest on the balance due anyway, and they are a lending service, not a services company. They charge you for letting you borrow money, not providing a service.

    In short, I charge a $5.00 surcharge for payments over 30 days as stated in my contract, AND the state maximum allowed of 1.5% interest. That's legal AFAIK. Credit card company's don;t charge a percentage of your balance as a late fee, they hit you with a flat rate- don;t get me wrong they may hit you with a different amount based on how much your balence is, but it's still a flat rate. If you're balence is below $100 the late charge is $x.xx, if your balence is $100.01 to $500.00 the late fee is $y.yy, etc.
  6. framer1901

    framer1901 Senior Member
    Messages: 805

    You all need to get some new customers if so worried about late pays.......

    I have four or five that pay within 45 days even though i bill at net 15, I've never said anything to them. Why? Because they are national companies that I bill locally and get paid by the corp office, usually outa state.

    Heck, I had a new customer this year thatjust paid me last week even thou they were billed Nov, Dec and Jan. They aren't going anywhere.

    While late fees and interest are part of business, I choose not to complicate things, my customers are my partners...... But if a local company continuely chooses to pay late, they get a bad spot on the schedule and won't get a contract from me the next year.
  7. Jay brown

    Jay brown PlowSite.com Addict
    Messages: 1,783

    i don't charge late fees or interest either. i bill in april for the whole season. usually get paid by may or june. i've learned that some people take awhile to pay and a business must have a cushion to off set this.
  8. Mdirrigation

    Mdirrigation Senior Member
    Messages: 408

    intrest at 1.5 per cent per month equals 18 per cent per year . And yes you can charge a late fee, and an administration fee , and a P.I.A fee if you like . You can only charge intrest if its stated in your agreement .
  9. jhook

    jhook Senior Member
    Messages: 375

    Ya, I am going to start charging late fees this month.

    Cracks me up when someone calls 30 minutes after the snow stops to wonder when a truck is coming to plow them out but they are a month behind on the payment. A good way of collecting is don't plow them until they call and then offer to pick up the check when you come. That can shut them up in a hurry.
  10. SnowGuy73

    SnowGuy73 PlowSite Fanatic
    Messages: 24,868

    Yup, same problem over here..Happens every year.:rolleyes:
  11. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,990

    Contracts and Credit card numbers, the card cost 3% but it's cheaper then trying to collect and I have my money as soon as I enter the numbers.

    Contracts are a necessity, even for driveways. Ours is a one page document that clearly spells out the limits of service, the cost, and the limits of liability. The customer also must provide a credit card number to bill against. No knocking on doors to collect our money, no arguing over cost. In the event of a disagreement over service or cost, a copy of the contract with the significant parts highlighted normally solves the problem. If the customer wants to pay in anyway but the credit card, they have to give us a deposit. the 3 bucks @ 100 the card cost is cheap, there's far to much profitable work out there to be waiting to be done to spend time driving around or on the phone trying to collect what really isn't a lot of money. Drivers carry blank contracts that only take a second to fill out. If a potential new customer doesn't want to sign it then they never become a customer, I worry as much about the liability as the cash.
  12. go plow

    go plow Senior Member
    Messages: 322

    you all bring good points, i wanted to look into a credit card machine also, i was worried about adding a late fee, i didnt want to scare anyone off, but i want to make my point that i do the work ,they as my client need to pay me!!!
    im going to see my lawyer this week, he said that it might be a good idea to rework my contract. he told me that my late fee should depend on how much is owed, say between $50 and $100 late fee should be around $20, $100 to $500 late fee $50 and so on.. it needs to make people think twice about forgetting to pay you......he said that my bill should have phone bill status..
    i just hope hes not p----ing down my back and telling me that its raining lol lol
  13. drmiller100

    drmiller100 Senior Member
    from idaho
    Messages: 119

    lets say a customer is NORMALLY a 30 dollar customer.

    Raise their rate to 60.

    Then offer a 50 percent discount if they pay within 15 days.

    explain it all in a nice letter. the ones that are good customers will laugh. the ones that are PITA will whine, and move on.