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Commercial Job Not Paying |
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Mrs. Speedy ![]() Newbie ![]() ![]() Joined: 22/February/2011 Location: NorCal Status: Offline Points: 27 |
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So I (we) need some advice. My husband did a commercial job over a month ago for a local company that operates out of a warehouse. We've done many commercial jobs in the past and handled it the same way. We gave a written estimate of the work first. They called and requested our service according to the estimate. We had them sign the invoice (contract) before the work began. The person who signed wasn't the person who requested the cleaning, however, it was the owner of the company that signed the invoice. We sent them an invoice in the mail with a 30 day due date. 5 Days after their payment was due I called and they said the money would be put into the mail. I followed up that call with a fax of the signed contract and the invoice that was sent in the mail. I waited 7 seven days and sent them a past due notice. According to our contract we charge a 10% fee of the original quote for any late payment. I've tried calling again, but the owner is no longer picking up his cellphone. I left a message and sent a e-mail reminder.
This is new to me. Personally I just want to go ahead and send the information to the collection agency. However, my girlfriend says to continue calling once a week to "remind" them of their payment. Has anyone had this problem in the past? Should I offer a payment plan option?
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~ Tiffany ~
"It's hard to beat a person who never gives up." ~Babe Ruth Speedy Steamer Your Carpet Cleaner www.speedysteamer.net |
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Ken Harris ![]() Grand Potentate ![]() Joined: 12/January/2006 Location: Canada Status: Offline Points: 1120 |
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First off the courts will never uphold a 10% late payment fee. Probably illegal.
Second the customer has made it clear by their actions or lack thereof that they don't plan on paying you. Best to sell this account to a collection firm and move on IMO.
Not getting paid on some jobs is a cost of doing business. If these losses amount to 2% or less you are doing well. Use your energy for obtaining more work from effective marketing. Don't waste it on the deadbeat accounts instead.
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Inventor of Teflon Carpet Wand Glides.Free Glides for all Cleaners in June!
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dmreed4311 ![]() Newbie ![]() Joined: 05/October/2010 Location: tampa Status: Offline Points: 39 |
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Over the last 16 years i have abour 33 thousand dollars in unpaid invoices, just part of doing business. If it is high dollar start making pop in visits handing them the unpaid invoices every time. This usually works as it make the company look like a dead beat company to its own employees.
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dmreed4311 ![]() Newbie ![]() Joined: 05/October/2010 Location: tampa Status: Offline Points: 39 |
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Also the payment plan option is a good idea , leave that option on the owners cell phone. might make him feel guilty too.
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John L ![]() Carpet Cleaning Guru ![]() Joined: 29/November/2004 Location: I'm Right Here! Status: Offline Points: 4013 |
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First timers payment is ALWAYS DUE on Receipt! Don't forget that.
Once you get trust then sending the ck could be an option. I dont deal with the 30-60day'ers anymore. Do what ya gota do.
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DarthGhost ![]() Newbie ![]() Joined: 06/September/2011 Location: Perth WA Status: Offline Points: 11 |
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Seeing as you have sent reminders and given them fair amount of time to pay. I would have to agree that its time for Debt Collection Agency to take over. They will soon pay when they call..I have done it in the past it works well..
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dmreed4311 ![]() Newbie ![]() Joined: 05/October/2010 Location: tampa Status: Offline Points: 39 |
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Remember a good collection agency may take as much as 40 percent
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DarthGhost ![]() Newbie ![]() Joined: 06/September/2011 Location: Perth WA Status: Offline Points: 11 |
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Better to get 60% than get nothing, claim the 40% as a tax loss..
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dmreed4311 ![]() Newbie ![]() Joined: 05/October/2010 Location: tampa Status: Offline Points: 39 |
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duckcountry ![]() Master Carpet Cleaner ![]() ![]() Joined: 29/October/2005 Location: USA Status: Offline Points: 1082 |
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Turn it over to a collection agency when it is 30 days PAST DUE, give the agency permission to sue and then you and your husband need to get back to business. No emotions involved, you don't want this account back as a customer. You have waited long enough for your money and collection agencies have the tools and expertise to make quick work of this matter.
Makes you wonder what happened to their relationship with the last guy. Or does it? |
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Are you in a high paying business or are you just a self employed low paid grunt who thinks this business provides dignity?
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Ken Harris ![]() Grand Potentate ![]() Joined: 12/January/2006 Location: Canada Status: Offline Points: 1120 |
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The Duck gave you some excellant advice. You should use it and move on.If you are priced right your time is worth $100/hr or more. Use it to generate new business. You have not got the skills to get money from these dead beats.
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Inventor of Teflon Carpet Wand Glides.Free Glides for all Cleaners in June!
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MR. STEAMER ![]() True Patriot ![]() Only in the GTA Joined: 03/March/2004 Location: Canada Status: Offline Points: 14549 |
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how much is it??? kiss it goodbye....
I only take cash visa or debit..personal or company.... screw these people that want to rob you your money after you've done the work... No cheque ... and if they insist they have to fill out a credit app... and I will check the references... most times I decline them...lol
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John L ![]() Carpet Cleaning Guru ![]() Joined: 29/November/2004 Location: I'm Right Here! Status: Offline Points: 4013 |
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Thats too bad you got burnt so early in your Career. Live and learn. This can be a cut throat service. I lost a Dentist acct that had 2 locations because they didn't send the money and i called them once a week. Got pd 4 wks later. The Accountant Beoch didn't like me calling once a week so she fired me... Big deal. $600yr acct no big deal...
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LilNiteRidrhood ![]() Master Carpet Cleaner ![]() Joined: 17/March/2004 Location: Antarctica Status: Offline Points: 1257 |
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Many third party management companies are net 60 to start. I have seen a slow move from net 30 customers to paying 40-45 days.
Unfortunately cash is king these days.
It is forcing larger corporations to be more guarded with their money and the effect creeps down into each corner of the economy.
As for not accepting cheques Steamer.
I could not imagine doing business that way.
Paranoia will destroy yah
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