If Customer Wont Pay

[SpikedSupra]

Guys,
Have you ever had a situation where the customer has either refused to pay you or said they cant pay you after your work is done? If so, what kind of action did you take or would you take. Have you ever had to take civil action? Do you make binding contracts before you do the work for them to sign stating penalties for non-payment?

 

[Jumper]

payment

These were turned over to a collection agency at about 50 cent on the dollar. A favourite here is the old "I paid that" by cheque, or cash or whatever, so keep very good records!

One of the last places I worked at the first company doing some smaller removals had had the gas cut off, as evidenced by the lock on the meter-had I seen that first I would have not done the work without a phone call to the boss before starting!

 

[SpikedSupra]

If they refuse....

What kind of action should be taken if they absolutely refuse payment though.....Thats mainly what I am after. I will definitely keep excellent records of my A/R's

 

[treeclimber165]

Only had it happen twice, in the first couple years of owning my lawn business as a teen. Both times were under $30, I chalked it up to experience and moved on a little wiser.
Never had it happen doing tree work, a 'sixth sense' warns me when I am dealing with unreputable people. I simply walk away. Many times I have found out later that the guy who did the work got screwed, and many times they got paid. But there is plenty of work for qualified treemen without dealing with people who raise the hair on the back of your neck. If you sell the job honestly and do a good job, payment as outlined in your bid is not an issue.

 

[Treeman14]

Problem with your very first job??????

Imagine that.

 

[SpikedSupra]

No no no Brett

This has not occoured....I am asking in preperation for the day that it happens. Hopefully it wont but should it happen i will have the knowledge then from you guys on what to do instead of it happening and I have to come running to you guys saying..."this big bad man wont pay me...HELP!" When it does happen I will be able to say "Alright you dont want to pay, well then I am am just going to have to _______________________!" This is where you guys fill in the blank....

 

[Jumper]

Frankly if I were in the lawn business and that happened I would return and spray a complementary application of RoundUp to the entire lawn and all the flower beds and shrubs, preferably when the owners were out.

For Forrest, just turn delinquent accounts over to a collection agency, you will get some money, and the satisfaction knowing that these @ssholes are being hounded to death for a pittance.

 

[treeclimber165]

Originally posted by Jumper
Frankly if I were in the lawn business and that happened I would return and spray a complementary application of RoundUp to the entire lawn and all the flower beds and shrubs, preferably when the owners were out.

I did!

I also will back off if I see evidence of utilities being shut off, lack of maintenence around the house, or other signs that the customer is unable to pay. Too bad you didn't see the locked gas meter earlier!

 

[o0_TreeMan_0o]

Just keep calling them on the phone and be very firm! After a while they will pay you to keep you from calling. Or just keep knocking on the door. But you need to give them a little "grace period" if you are tring to keep a professional company. 30 days is usually enough.

 

[Newfie]

I like the Roundup idea! I was thinking that it might be the ideal spot to dump a couple loads of brush/chips misc. debris. If the price is right, why not?

Forrest, how about some pro bono work from dad, he's the hired gun?

 

[DDM]

Forget Spraying Roundup Just fill up a few Ballons and Toss them out of the Truck on the way by one Nite!

 

[Kneejerk Bombas]

We fill out an intent to file lean form, down at the court house.
It's cheap and let's the customer know that you will be filing a lean on his property. Once you have a lean, he can't sell, until the bill is paid.
This really gets them to send a check in a hurry.

 

[SpikedSupra]

Filing a lean...

Yeah my boss mentioned something about that when I asked him. That seems like the best way to legally get your money guaranteed. It's a simple process and cheap you say? i will talk to my dad about his opinion on how he thinks it should be handled legally. He doesnt do this kind of work but he seems to have copious amounts of knowledge in all areas of law so he may know the best thing to do especially because laws are different from state to state on things like this.

 

[treeman82]

I have heard stories before of how some people get their money. I will only say this one word to describe their methods "Intimidation" One guy would go to people with unpaid debts in his chip truck loaded with waste wood. "I want my money now, or I am dumping this wood in your driveway" This is with a guy in the truck of course waiting to dump the bed. Another guy has held all of the most dangerous jobs on the face of the earth (commercial fisherman in Alaska, military in Alaska, commercial logging in CA, iron worker, now residential tree care). When he comes to a place asking for money... it is best to give it to him.

 

[Stumper]

Complete failure to pay has only happened a couple of times in the last 18 years. I just gave up-it wasn't worth the time to pursue it. Late payments seem to be standard ops for apartment complexes and some large companies so I add nuisance fees into the bid for their sins. One of the complete failures was a constuction contractor. His failure to pay $100 cost him many anti references -"Whoever you get avoid so and so, he is a crook"