people who need me in a hurry and then dont pay on time

[huggytree]

this has happened to me over and over...its always a referal or someone i met at some networking event once..its never a complete stranger.

i get an emergency call from someone (typically a realitor or a duplex owner) and need me to go and fix their problem today....they are not there to sign or pay..

i send the bill and the 30 days goes past...then they dont answer their phone or return phone calls....then i threaten a lien and the money gets paid.

the latest one is a realitor who needed me the day before closing...he's 10 days late...2 phone calls w/ no return call...in 2 weeks he gets 1 more call and then a 'intent to lien' letter to the homeowner....in addition i wont sign the lien waiver until he pays $80 extra for the paper work...oh yea this is a $190 bill....he cant pay me a lousy $190....soon he'll pay $270

when you sell a house the realitor must sign off that all work performed in the past 5 months has lien wavers...how will the homeowner like it when he gets a lien notice after that?...

ive talked with my lien company...he says this story is common..

anyone else had this type of customer?

i know i wont ever again...my policy has changed

[greenoak]

thats awful..... and too bad becasue they might need you again.....
whats your new policy?
...somehow to make them pay before you enter?
im so glad we are cash and carry....no credit.... but i know thats not very easy or common in service calls...

[huggytree]

my new policy is not to stray from my old policy..

no credit to anyone other than builders

they need to show up and sign my contract and leave me a check....i dont leave the house w/o a check..

because its a referral or someone i know alittle bit i always try to do them a favor....the reality is they are unorganized /waited until the last minute or just a cheap duplex owner.

people who own duplex's typically dont want to spend anything...i rarely work for investment property owners...

this current guy is a member of another BNI chapter, so i could try to get him kicked out of BNI if he doesnt pay.. I also could go after his Realitor license because he probably did not disclose to the homeowner there's a potential Lien out there...he's also a friend of a friend, so im calling him tonight to see if he got paid for the plumbing he also did on the house..

it just stinks because i have nothing signed...my valve is in the basement with my name lasered into it...i was going to take digital photo's, but forgot.

[orion_joel]

One potential options may be to require a signed work request even just on the business letter head or a personal letter if just a duplex owner or such. That requests the work to be done that is being asked for, and saying ok for you to do the work and signed by the person. As a potential way to ensure payment if you are able to deal with credit cards require a card number on the letter and the invoice will be directly charged.

If not able to deal with a credit card, cut the bottom out of the payment time for this type of customer. 7 days net accounts. If not paid in 10 days call, and if not paid in 14 days a lien. Even maybe put on the these invoices, 7 days net, accounts overdue by more then 7 days will have a lien placed on the property.

Possibly a third option could be to offer a 5 or 10% discount if paid same day.

[Spider]

Do you notice how no-one ever argues against policy? If you say, "I'm not going to do this," the other party will often try to convince you, argue with you, even beg. But the minute you say, "That's against my company policy," the conversation stops right there!

So, Stop Argument Phrase #1 - "Sorry, it's against my company policy."


Next, do you notice how no-one ever argues against the reported instructions of an attorney? They pause, and seem to think, then drop the subject.

So, Stop Argument Phrase #2 - "Sorry, my attorney won't let me do any work without a signed contract."

Alternative : "My attorney won't let me do any work without the owner being present."


Finally, do you notice how no-one ever argues against the reported instruction of an accountant. Likewise - they pause, seem to think for a moment, then change the subject.

So, Stop Argument Phrase #3 - "Sorry, my accountant won't let me do any work which cannot be paid for the moment I have finished."


Another phrase worth remembering : "A lack of planning on your part does not constitute an emergency on my part." Although that one may lose you the work!!!

[huggytree]

these situations always involve a very small amount of money...ive never had one over $500

it makes it all the more irritating that i have to spend time to collect on a job which was almost break even.....spend $200 worth of hours to collect $190....

anyone like the idea of me tacking on $80 for my intent to lien before ill sign a waiver?

legally i dont have the right, but i could take him to small claims court for it...im going to try to tack it on for the heck of it...let him try to take me to court over it being tacked on.

id rather lose the work in the future...and i probably will....my policies and strict enforcement has probably been why i havent lost money yet...while most subcontractors have lost tens of thousands.....my higher prices keep the garbage customer away from me...my strict following the lien laws have made me the 1st one paid.

[nealrm]

Huggytree, read back over what you posted. You are wanting to add a 40%+ fee to a bill plus placing a lien on the property all for being 10 days late in payment. I think you are jumping the gun. Try a polite letter to remind them to pay. I would not go the lien route until they are at least 90 day past due.

[huggytree]

no way id ever wait until anything is 90 days late...thats 120 days after i did the job!!!

30 days late is the max for anyone period.

i rarely have late payers anymore...im down to a core group of good customers....i only have 1 steady customer who pays late...everyone else is 100% on time

yes he's only 10 days late, but he has not returned 2 phone calls...which puts him into a negative catagory....he has 14 more days and 1 last phone call before the 'intent to lien' letter.

he will be paying my collection fee's if i have to go that route...

its all about me doing a favor and being treated like garbage after the favor is done....i expect to be paid quickly when i do a favor...7 days is what i expect....30 is the least of what i expect...40,50,60 is not acceptable for a favor.

[The Entrepreneurs Network]

If you service a new customer, then COD is a good policy. If it is an existing customer and you know they always pay, then 30 days is not unreasonable. Threatening or filing a lien within 30 days will not get you repeat business. Repeat business is a lot cheaper than new business, so you might want to be more flexible with people like realtors whom you might get repeat business from. If it is net 30, then sent them a reminder after 30 days. Your customer can be your best friend or your worst enemy, so treat them with some respect. Set your policy, let customers know what it is and then stick to it.

[nealrm]

Just so you know what forcing the payment will cost.
1) The lien filing fee
2) The home owner will tell 10 friends about you. The comments will not be nice.
3) The home owner's friends will tell 2 to 3 more each. Those comments will be worse.
4) The Realtor will tell 20 other Realtors and never refer a home owner to you again.
5) Each of the 20 other Realtors will not refer a home owner to you again.

That is a lot of negative PR for a simple manner.

You don't need to allow other to walk over you, but don't be iron fisted either. I have found that a polite letter or request can go a lot further than a threat.