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Late Fee

Discussion in 'Commercial Snow Removal' started by snow_man_48045, Jan 23, 2003.

  1. snow_man_48045

    snow_man_48045 Senior Member
    Messages: 324

    Just curious, as to what is the general % rate to charge those forgetful customers who don't pay there per push bill on time. I was thinking 10% would work for me, is this to low or high. Yoyr feed back would be great! Keep though interesting threads coming.. Thank you all..:waving:
  2. Pelican

    Pelican 2000 Club Member
    Messages: 2,075

    Check your local laws, in NY it's governed. We are allowed a maximum of 1 1/2% per month or 18% annually.
  3. baddboygeorge

    baddboygeorge Senior Member
    Messages: 237

    by law 18% strait up i charge it every time someone is late after the 30 day mark its 18 % no ifs ans or buts i have a business to run an people to pay an i need my money like you needed your lot plowed . most of my customers pay me within 72 hours after the storm ,thats what i prefer an state in my contract.
  4. jkkalbers

    jkkalbers Senior Member
    Messages: 116

    If we tried to charge a late fee people would dump us and go somwhere else. too much competition to do that.
  5. Grshppr

    Grshppr Senior Member
    Messages: 268

    We can charge up to 24%/annum here (2%/mo) late fee. 75 % of my customers pay in 30 days, 20% in 45, 4% pay as soon as they get the "reminder" statement. The last 1 % have to go after to get payment (including one guy that owed me $300 and I dropped in monthly for a year and a half. He always said he was going to pay, was happy with the job etc. I went to his house Christmas morning to ask for payment, he had family over. He asked how my Christmas was, I said terrieble, I couldn't afford to buy any gifts. He didn't have the money then, but had an opened box of chocolates for me. I recieved full payment a week lter..i guess he didn't want me to show up on Thanksgiving diner. He actually had the nerve to ask me to do more work for him in the spring. Told him it wasn;t worth my time to chase him down all the time. Sorry I'm off topic...but back to the late fee...50 % of late payers pay the fee, because they realise that they are late payers. (one even gave me $100 extra because she was 4 months late on a $200 bill) I think if you wanted to charge a minimum $10 or so late charge you can as long as it is stated in the contract and they ave signed it. Otherwise you can on;y charge the state or provincial determined amount.
  6. mike9497

    mike9497 Senior Member
    Messages: 466

    10% here after 15 days
  7. wyldman

    wyldman Member
    Messages: 3,265

    Most of our contracts are pre-paid,so never any late fees :)

    The ones that aren't,or for salt billings,if they don't pay we stop service.Must be well spelled out in your contract beforehand though.
  8. Brother1

    Brother1 Member
    Messages: 59

    We're with Pelican. 1 1/2% per month after 30 days past due. Charging it is one thing but getting customers to pay it is another. Hey the phone company charges that so why shouldn't we??

    P.S. Hey Pelican - 24 days until Tony rules speedweeks!!! :D
  9. mike9497

    mike9497 Senior Member
    Messages: 466

    don't leave out #8 him and tony get along real well.
  10. Rob

    Rob PlowSite.com Veteran
    Messages: 306

    I do the 18% (1½ % per month). I also do net 25 days, so that means I can bill at the end of every month and "the check is in the mail" excuse doesn't cut it because you are already about 5 days late. I will admit though that I rarely have to actually charge someone the penalty. I will also add that on the few times I have had to charge the penalty, only one customer tried to beat me out of it by only paying the actual amount less the penalty. So, the following month when I sent the bill I left that piece on the bill and marked it as "balance past due". They paid it then.

    On a related note, I find it interesting how some customers pay within days of me mailing the bills and how others are at the last possible moment.
  11. rec067

    rec067 Member
    Messages: 34

    Payments due the 15th of each month. Considered late on the 20th. 3% late fee on unpaid balance charged on the 20th. Never any arguments( knock on wood) I due use discretion and allow for holidays and such. Everthing is spelled out in contracts.