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james peters

  • Posts: 990
time to lighten up a little (payments)
« on: December 19, 2012, 05:38:26 pm »
hello ;D

ok, so as the title says....on domestics I have always been very strict as regards payments.....I dont do messers, if they are late more than once I let them go....

the results of this are good in respects  of money coming in...

35% send check or pay online , and the other 65% pay cash......
I only collect 2 days work that is on my doorstep....

the 35% that are out at time of clean  all pay within 1 week via post or online (and maybe 5% ) of them pay within 2 weeks....

this is great because I never have to chase money.....
but I feel that in order for me to expand at a faster rate , I should lighten up a little and be more flexible.....

so I am going to allow up to one month on domestics from now on, although I will still state on my payment slips that payment is to be forwarded within 1 week.....
when I think of the custies UI have let go due to being habitually late (3weeks or more) it runs into the hundreds.....may be £1000 a month :o

just thought I would share this ;D

Ian101

  • Posts: 7889
Re: time to lighten up a little (payments)
« Reply #1 on: December 19, 2012, 06:03:35 pm »
Why compromise your rules of engagement ?

Im not as strict as you but have binned serial slow payers in the past - these days I would always offer standing order before binning any slow payers.

james peters

  • Posts: 990
Re: time to lighten up a little (payments)
« Reply #2 on: December 19, 2012, 06:39:47 pm »
Why compromise your rules of engagement ?

Im not as strict as you but have binned serial slow payers in the past - these days I would always offer standing order before binning any slow payers.

not compromising really....I still expect prompt payment...but will be more lenient....
I would like to have standing orders on the 35% .....just would be so much easier....

I am thinking of introducing this , and pushing it next year......

Halfadaylee

  • Posts: 625
Re: time to lighten up a little (payments)
« Reply #3 on: December 19, 2012, 06:42:29 pm »
If your going to expand surely you are going to need good cash flow?
I can not see your logic here
Joe

james peters

  • Posts: 990
Re: time to lighten up a little (payments)
« Reply #4 on: December 19, 2012, 06:55:02 pm »
If your going to expand surely you are going to need good cash flow?
I can not see your logic here
Joe

If I hadnt binned the slow payers, I would have a much larger round....the slow payers I binned did pay within the month before their next clean.....
but I have always been quite rigid with payments   .........

I must add here that I have plenty of customers, I have been 12 years trad and 7 wfp....

it's just that next year I want to have a growth spurt which I am planning for....
I just feel the need to lighten up a little...
but I get what you mean joe :) 

Halfadaylee

  • Posts: 625
Re: time to lighten up a little (payments)
« Reply #5 on: December 19, 2012, 07:02:25 pm »
If your going to expand surely you are going to need good cash flow?
I can not see your logic here
Joe

If I hadnt binned the slow payers, I would have a much larger round....the slow payers I binned did pay within the month before their next clean.....
but I have always been quite rigid with payments   .........

I must add here that I have plenty of customers, I have been 12 years trad and 7 wfp....

it's just that next year I want to have a growth spurt which I am planning for....
I just feel the need to lighten up a little...
but I get what you mean joe :) 

Hey, my numbers are the same, 12 years and 7 wfp.
The difference is for me as an 1 man band the slow payers drive me mental, the new year is going to a cull!
good luck with the building
Joe

Crystal-clear

  • Posts: 3029
Re: time to lighten up a little (payments)
« Reply #6 on: December 19, 2012, 07:45:52 pm »
thing is they will pay you they are just human and people forget 1 week is pretty strickt imo...
i like to say within 3 weeks or 21 days all my customers are 2 monthly so prompt payment is important however i dont harras them and i think they like that for example
i cleaned a property £10 3 times customer not paying so 4th visit and 8 months later he was in and paid £40 ,the other day £8 job payed £16 4 months later and so on, most pay pretty qucikly its true that if everyone was like them ill be in a mess but its not so i just leave it 2-3 cleans before i call them works well contributes to mt low cancelation rate (after 3 cleans) as before 3 cleans its a different story  ;D

Mike #1

  • Posts: 4668
Re: time to lighten up a little (payments)
« Reply #7 on: December 20, 2012, 06:07:56 am »
Cant understand how anybody can pay their bills if your debt list continues to grow and people are just forgetting  to pay .

Some folk need a push to pay called back  at a house the other day for payment because over the past few months custy has forgot almost every time to pay online .

Anyway she pays and her husband shouts to her i told you we had a slip through the door it is your turn to pay   ??? ???. He works from home and is always sat at PC when i clean the windows but he never has any money,

Some custys have the odd oversight others take the pee a bit so i think it is important to push custys a little in order to get prompt payment .

Otherwise if you let them off for weeks they will fall into that natural habit of leaving it weeks , possibly losing payment slip and totally forgetting to pay you which = hours of collecting a week . Mike

suds window service

  • Posts: 1151
Re: time to lighten up a little (payments)
« Reply #8 on: December 20, 2012, 06:13:49 am »
Cant understand how anybody can pay their bills if your debt list continues to grow and people are just forgetting  to pay .

Some folk need a push to pay called back  at a house the other day for payment because over the past few months custy has forgot almost every time to pay online .

Anyway she pays and her husband shouts to her i told you we had a slip through the door it is your turn to pay   ??? ???. He works from home and is always sat at PC when i clean the windows but he never has any money,

Some custys have the odd oversight others take the pee a bit so i think it is important to push custys a little in order to get prompt payment .

Otherwise if you let them off for weeks they will fall into that natural habit of leaving it weeks , possibly losing payment slip and totally forgetting to pay you which = hours of collecting a week . Mike
.  Where's that LIKE button?

roundbuilder

Re: time to lighten up a little (payments)
« Reply #9 on: December 20, 2012, 09:21:18 am »
I think as long as you have the majority bulk of good paying customers your business will run fine. If you have 400 custies and 200 pay on the day. 100 are good and pay online via bank tranfer or cheque etc. if the other 100 customers take 2-3 months to pay instead of dumping them go and collect yourself or just wait untill they do pay as 9 time out of 10 i find hey do pay.
Its a small cash business. I have many customers who like to let it build upto 3 or more cleans so they dont have to ponce about 12 times a year writing out a cheque.
As long as i get money owed im happy.
Its the scum who move withought telling me who owe more that twice that realy p me off.

Scrimble

  • Posts: 2052
Re: time to lighten up a little (payments)
« Reply #10 on: December 20, 2012, 10:15:44 am »

Its the scum who move withought telling me who owe more that twice that realy p me off.

completley agree with that,

scottt24

  • Posts: 397
Re: time to lighten up a little (payments)
« Reply #11 on: December 20, 2012, 11:10:46 am »
I can't see how someone who pays you before you're next due is a bad customer
Thanks,
              Scott

gr cleaning solutions

  • Posts: 810
Re: time to lighten up a little (payments)
« Reply #12 on: December 20, 2012, 11:45:39 am »
I have about 70%! Of customers pay on the day which covers bills and all out goings then about 25% pay with in a week or two and the rest pay double on the next clean if I don't get it before , so by the end of the month I've alway got most of my money in and there is always a bit outstanding which I don't mind as I know I will always get it

roundbuilder

Re: time to lighten up a little (payments)
« Reply #13 on: December 20, 2012, 11:56:37 am »
I have about 70%! Of customers pay on the day which covers bills and all out goings then about 25% pay with in a week or two and the rest pay double on the next clean if I don't get it before , so by the end of the month I've alway got most of my money in and there is always a bit outstanding which I don't mind as I know I will always get it
Sounds you have your round running to a t mate.
Nice 1.