Mike Andes and a co-host walk through how lawn care businesses handle customers who don't pay. Stop service right away, demand payment or threaten collections, and push for upfront or card payments instead of checks. Collections agencies take a big cut, so use them last.
30–50% ("30, 40, even 50%")
Within seven days
If someone's not paying, stop doing service on their property and collect from them immediately. She hasn't paid me.
Not a $750 service.
At the very worst, if nothing works and they're months overdue, you gotta send them to a collections agency.
I'm gonna bother you until I get my payment. If I don't get the payment, then I'm sorry, I'll have to send you to collections, which will destroy your credit.
A collections agency is usually going to take 30, 40, even 50% of any revenue they collect on your behalf. However, they're gonna send threatening emails and, and mail to the customer telling like, look, if you don't pay, we're going to ding your credit score. If it really gets bad, you can put a lien on the property. We are not in the banking business. We're in the lawn care business. So either get paid before or immediately after using credit cards. And if you're going to allow checks collect within seven days, if you go beyond that, you start having serious cash flow problems.
