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My new approach to charging for late payment.
« on: February 12, 2013, 01:25:09 pm »
I will be changing my approach to customer payments as I am getting fed up of customers using me as the bank overdraft.
So as from my next invoices . I will be having  a price if paid within 10 days and 2 quid more for those paying later.Further more l charge £ 3 admin fee per month for late payment  exceeding the ten day term. I have always stated that any legal cost in retrieving the payment of service are for the account of the service receiver.   Anyone  else have this type abuse of your payment terms.Besides this I am a nice guy.

CLEANCARE WC

  • Posts: 4454
Re: My new approach to charging for late payment.
« Reply #1 on: February 12, 2013, 01:35:39 pm »
I think we have all had them, its whether you keep them? got rid of most of mine you start to resent the customer and skip them anyway. I totally understand why your doing it though.

Funny enough all my customers seem to pay really prompt lately and just on the last months cycle i have had 6 new online banking payers. really pleased with that.

do you collect? i havent for over 2 years now sae with option to send cheque or pay online.

I think that if you do collect the customers take the pee, they will do nothing until you go knocking for your money. I can honestly say that stopping collecting has speeded up how fast payments come in. sounds crazy but its true.
WE CLEAN BY FAITH, NOT BY SIGHT WITH WATER FED POLE WHEN WORKING AT HEIGHT.

Crystal-clear

  • Posts: 3029
Re: My new approach to charging for late payment.
« Reply #2 on: February 12, 2013, 02:27:09 pm »
I was thinking of that smithie funny exactly what u are on about different prices price a and price b , but end of the day people just simply forget and pay in the end,so I don't really want to charge em just send reminders out every 21 days that's what I do now those who keep ignoring those ring em and see where u go

bobplum

  • Posts: 5602
Re: My new approach to charging for late payment.
« Reply #3 on: February 12, 2013, 04:34:47 pm »
I will be changing my approach to customer payments as I am getting fed up of customers using me as the bank overdraft.
So as from my next invoices . I will be having  a price if paid within 10 days and 2 quid more for those paying later.Further more l charge £ 3 admin fee per month for late payment  exceeding the ten day term. I have always stated that any legal cost in retrieving the payment of service are for the account of the service receiver.   Anyone  else have this type abuse of your payment terms.Besides this I am a nice guy.

i think you need to change some customers
but give it a try and see what happens

Re: My new approach to charging for late payment.
« Reply #4 on: February 12, 2013, 06:09:35 pm »
I already have a charge for late payment of 2 quid if paying later than 10 days all I am doing is offering a price if they pay on time and more for late payment. The late payment will cost more which and I am not fixing the increase.So I can up that if need be. I have full confidence that all will accept it and if not those can get stuffed. The ones not wanting this method of payment, will be the ones abusing the system and I don`t need people in my fold like that. So this starts tomorrow. ;) ;

Christal clean I have been in different types of business  for over 45 years and my experience most customers will come in line when you challenge them. It makes them realize you have order in your business.

Crystal-clear

  • Posts: 3029
Re: My new approach to charging for late payment.
« Reply #5 on: February 13, 2013, 01:32:26 am »
yep makes sence smithie, can i ask what % or approx how many pay the £2 late price at the mo? with me i say 21 days but this is abused sometimes certain pay double or tripple in my case its 4 or 6 months! as my work is 2 montnly.and i have no penaltys in place they are just really sorry and eveything is fine,my view is its not a big % most pay within the period so not sure if i want to upset people by bringing in a penalty that i dont think i need thats why i left it as it is for now

Re: My new approach to charging for late payment.
« Reply #6 on: February 13, 2013, 06:35:58 am »
Not sure, but do you legally need to give someone who has an invoice a minimum amount of time to pay?

Spruce

  • Posts: 8645
Re: My new approach to charging for late payment.
« Reply #7 on: February 13, 2013, 07:23:19 am »
Many years ago in the ladder days my daughter in laws father used to charge £3.00 for a 3 bed semi in Billingham and if he had to come back for the money it was £3.50.

He found that most people left his window cleaning money on the bedroom window cill if they weren't likely to be in. It worked for him.

Not as easy to do with WFP but it would be interesting to see how this works. Watching you Smithie.
Success is 1% inspiration, 98% perspiration and 2% attention to detail!

The older I get, the better I was ;)

R.C Property

  • Posts: 1599
Re: My new approach to charging for late payment.
« Reply #8 on: February 13, 2013, 07:50:25 am »
from the start i have a £5 charge if not paid within 14days, thats why im only in debt for around £20 at the end of each month, thats mainly due to 1-2 people that phone up and say is it ok if i pay next time, mainly the elderly.