Bad Accounts

[Henry323]

Accounts that don't want to be COD and they ask for a 30 day net and they're still late with there payment are they worth keeping even if the money is good an the job is easy, Any of you guys dealing with that.

[cdposey26]

Depends on how late they are and if they are paying late fees too

[statewidehoodcleaning]

Originally Posted by Henry323

Accounts that don't want to be COD and they ask for a 30 day net and they're still late with there payment are they worth keeping even if the money is good an the job is easy, Any of you guys dealing with that.

deal with it every month, hit them with late fee, 31 days after cleaning, if they still pay late next time , bump their price up, and hit them with late fee again,
they will either get the point or you will make more money. (when ever they pay,)
just show up at their door if you have to. they love that.

get a meal when they bring you the ticket say...... BILL ME. Ha ha

[Alexy]

They only get a 30 day net with a signed service agreement. i would go further and in this case they would get neither until they are current and then make it clear any lapses on thier part means a late fee.

[Henry323]

I don't mind accounts that are 1 or 2 days late with there payment but i have one account that is always 15 to 20 days late with his payment. Oh yeah, they are paying late charges but just the fact of chasing him for payment seems like time i could be putting into getting new accounts or maybe i should just put him as a cod and see what happends....

[Beth n Rod]

There was one person on TGS that posted a $50/day late fee in their terms which helped to get the people off the dime.

-Food for thought-

Rod!~

[HotShot]

Is that legal Rod?

Back in Oct of last year I cut a bunch of non payers like you are talking about Henri....wow, the stress they bring. Dump them and find some accounts that do pay on time everytime. They are out there.

[Alexy]

A "easy" sell on COD is to walk in withthe paperwork for the job on a clip board pen in hand and as you fill it out BEFORE you begin ask them " Are you paying by cash or check toady?" It takes all pressure off the "will you pay me now?" in a nice way.

[HotShot]

an even easier one is when you call to confirm, make sure to say "Will you be paying by check or Cash tonight?"

[Henry323]

I know what you mean Ant lots of stress with those accounts, thats why the account that I'm talking about is going to become a cod account no matter what, if stays good if not he's lost.

[Skyler]

Originally Posted by cdposey26

Depends on how late they are and if they are paying late fees too

What are reasonable late fees? How do you calculate them?

[statewidehoodcleaning]

Originally Posted by Skyler

What are reasonable late fees? How do you calculate them?

I let them know right up front and also ad it to the invoice
their will be a 18% late fee on all accounts not paid in 30 days of cleaning date. And 18% every 30 days their for after. No exceptions.

that gets them paying... as soon as you send them the late fee they seem to pay right away,

[Grant]

I hope you mean 18% annual percentage rate (1 1/2 % per month) that's currently the maximum legal (unless you are a credit card company, I don't know how they get away with it!)

[Hummerbk]

We had a large hotel that always took between 60 to 80 days to pay us despite repeated phone calls.

We raised the price by $100.00 and mailed the invoice to them and wrote on it "If paid withen 30 days take $100.00 off the price".

We have been doing that for three cleanings and are always paid in three weeks.

[statewidehoodcleaning]

Originally Posted by Hummerbk

We had a large hotel that always took between 60 to 80 days to pay us despite repeated phone calls.

We raised the price by $100.00 and mailed the invoice to them and wrote on it "If paid withen 30 days take $100.00 off the price".

We have been doing that for three cleanings and are always paid in three weeks.

That will do it.