Payment policy?

[treeman82]

I was just wondering what is everybody's payment policy? The bulk of the local people who I associate myself with are "work is done, where's my money?" Not in those words, but you get the idea. I have met few people who do "work is done, I will send you a bill." So what would you say you do more often?

 

[John Paul Sanborn]

Contracts should read payment due on completion

 

[treeclimber165]

As JPS said, all my quotes/estimates specifically stated 'payment due upon completion of work'.
Exceptions were corporations or certain commercial jobs where the check had to be written up out of the accounting office. For those, I wrote 'payment due within 30 days of completion of work'. I also made sure the final invoice got to the right person as soon as possible after completing the job. You can't give them a bill 2 weeks after finishing a job and expect them to drop everything and write you a check on the spot.
One company that managed several mini-storage properties only processed payments once a month. Their cutoff was the 15th, so I always did their work in the second week of the month and hand-delivered the invoice to the main office before the 15th.

 

[TREETX]

I always say payment due upon reciept of invoice.

I don't like asking for money when we are done there. I found that leaves us way too open for the homeowners that try to stretch the scope of the job by saying,"I'm going to get my checkbook, could you just get that other limb?"

If you say know, you are rude and if you say yes, you are a pushover. Invoicing later allows me to complete the job to the predetermined specs, clean up, and move on. Plus if you and a 3 man crew sit for fifteen minutes and wait for a lady to find her checkbook, you just lost 1 man hour there.

Nothing beats money in the bank. I love it when they just hand you a check or wad-o-cashola when you are putting your equipment up.

 

[Stumper]

Payment due upon completion. Yes, there are customers that I will bill. And yes, I will wait for payment if there is a prior arrangement. As for the commercial properties that want to pay in 30-60 days. That is to there advantage-not mine. I got burned a few times by apartment managers who said "No problem, we'll have the check waiting for you." They didn't and I had to wait weeks. Now I automatically add 15% to apartment jobs when I bid them. If it were a line item on the bid ('tain't) it would read "nuisance surcharge". (There are few individuals that get that one to.)

 

[John Paul Sanborn]

On a few large jobs I have built in a discount for having cash the day of the work.

When billing I always included a company return envelope to make it easier for them to pay. That company took plastic so I would highlight, or tell the people tha the could just call it in to the office on their card.

I would also highlite the part on the invoice "payment due on completion".

With contracts it is always good to have them initial that part.

Some people we would not return to unless we had a payment prior to starting the work.

As crew leader I would alayss approach the client while the creww was finnishing the cleanup, this way i could be sure that the work was satisfatory.
With the "could you do this" it depended time we had on the job and the difficulty of the request. I will do small projects happily, concidering it relations management. If it is difficult, or they pile on, I will put a price on it.

I'm never afraid to add on to the job and the price. Many times i'll ask if there is anything else we could do today "we could take care of that crab for $50 more".

 

[TREETX]

I am pretty apprehensive about adding stuff on. That is where I lack as a sales man. I didn't mention it before but I have gotten pretty good at picking out those picky people and just tacking an extra charge for the degree of pickiness they have.


ONE LAST POINT - Aren't options 1 and 3 the same??

How about payment upfront?? I had a sweet lady offer that yesterday. I don't know why but it almost always offends me. Kinda like - "Do I look that hard up?" Do you offer to pay a doc before surgery?

 

[treeclimber165]

Originally posted by TREETX

How about payment upfront?? I had a sweet lady offer that yesterday. I don't know why but it almost always offends me. Kinda like - "Do I look that hard up?" Do you offer to pay a doc before surgery?

I worked for myself for years, had many people offer me payment up front. I would answer emphatically "Absolutely NOT". I'd insist that payment shouldn't be made until the job is done, no matter which tree service they used. These people always turned out to be some of my best customers.

I accepted payment in advance twice in the years I worked for myself. For some reason, those two jobs took approximately 2 weeks before I was able to get around to completion. The guilt was awful. I don't believe I worked for either customer again. I found that it just didn't work for me to get paid in advance. The cost was too high.

 

[John Paul Sanborn]

I've only done down payments on large scheduled jobs for new clients. They wnat it during a certain time frame say a month or two a wy, so I get $100 ernest money to lock myself into the job. Hate it when set up extra people and call to say we are coming "Oh we had someone else do it last month!"

 

[Nickrosis]

Payment upon receipt of the bill. Prepayment discount only for the Spray/Inspection Program or Fertilization.

Is it all condo/apartment companies that like to screw people over? We've got our lawyer on one place right now, and we've had problems with others before.

Nickrosis

 

[murphy4trees]

I go by the motto..
NEVER TURN DOWN MONEY.
That would be like a slap in the face to God.. I pick up pennies.. turn them heads up first when necessary and give thanks for the abundance with which I Am blessed. So when they ask if they should pay up front?.... Whatever you feel comfortable with.
Also been thinking I should get a 33% deposit for crane jobs, and eventually may go to a 10% deposit as standard procedure.
God Bless All,
Daniel

 

[TheTreeSpyder]

i've gotten down payments for cranes a few times, or check when it/we shows or leaves (b4 total completion); $150 @7or 8 hrs. can add up quick!

i like getting paid at end as sign of agreed, successful, satisfactory completion. i'm with local BBB and teach people not to prepay (verbally!), unless someone is putting a load of roof tile or other major investment on their driveway; have heard too many stories, so i don't 'teach' them that it is okay, by allowing it and showing them it can go right. Kinda like not giving candy to a kid, so they don't go on thinking that is okay to take candy from a stranger, esp. one that looks like me! Mostly, older people (who should be more experienced in story and practice) are the ones that try to pay early; and are targets for others. i tell'em any tree, lawn, pressure cleaning etc. person should have their own equipment, and the gas to do the job!

i have some customers, that i might not bill till i bring in a 'payday' of several bills to the office, a few times that has gone on for a few months of small stuff b4 i do! Have never gotten burnt except....... by other tree guys!!!!!!!!!!!!!

In fact, have tried to help people out, and they have pissed me off so bad i left uncompleted, won't take money, don't want nothing of 'em! Months later, this guy had someone else screw the tree up in the back, he sees me, starts his song, i let him know i didn't want to talk to him about his lousy money (this guy was something else); so he said F U, i'll put it in the truck................................. Hmmmmmmmmm; well, i informed him if he went near my truck; when 'they' came; i would say i thought he was trying to steal it! It took about 3 more steps for that to sink in.............