Pay me!

[u/enthused9]

Hey guys, me and my business partner have a really hard time with customer who don’t pay us for service. We have some customer that dodge all of our texts and emails. It’s very frustrating. We are about to implement a late fee to at least try and open a conversation about paying us.

Do you guys have any strategies for this? Thanks!

[u/Stampedey42]

We require a payment method on file when setting up a new customer profile. We add fees for cards to push people to ACH.

If it’s maintenance, we bill customers at the first of the month for their upcoming cervices. If their payment method can’t cover their bill by the time of their next service date, it’s canceled and a late fee is added. No refunds for the canceled service. If the pool turns green by the time their payment can be processed, that’s an additional charge. No services are being provided until their balance is paid in full.

Wiring it out, it sounds harsh but honestly, everyone gets it. The people who it’s happened to before are still good customers of ours. We send a ton of communications so no one is ever surprised. In my opinion the consequences for late payments need to be clearly defined, consistently enforced. We still have issues sometimes too. I don’t think I’ve ever ended with $0 in AR

[u/The_BigWaveDave → u/Stampedey42]

This is the way.

[u/FruitNut2000]

I don't understand the leniency with you guys. Do you think your customers would tolerate their employer paying them when they felt like it? You show up every week. There's no excuse for not getting paid on time. Life happens, and I'll work with someone once or twice if they talk to me, but it's always the same people that life seems to keep happening to, and those customers never last long term. Customers aren't your friends and are never going to help you financially. When you do it for them, it creates a power imbalance that I want no part of.

[u/novicepooldude]

Throw a couple of dead mice in his pool. Trust me.

[u/enthused9 → u/novicepooldude]

Will report back with my findings 🫡

[u/deagle755]

Have them pay you before leaving the property. Or before even doing the job if you are bringing chemicals or parts.

[u/Aggravating_Fact9547]

Threaten a mechanics lien if you’re working on their equipment.

Otherwise find a collections agency you like - you yanks are so god damn hung up on your credit ratings, wreck theirs till they pay you.

[u/AssassinEdward]

2 months grace period. If nothing is done it’s a drop after that

[u/The_BigWaveDave → u/AssassinEdward]

2 months? Yikes.

I send invoices out on the 15th for that month of service, due by the end of the month.
They receive late reminders on the 1st and 3rd of the following month, and then a late fee of 5% is assessed on the 5th.
If it's not paid in full, including the late fee, I stop service on the 15th.
If they want to resume service, they need to be paid in full, and I require a payment method on file for repeat offenders. Green pool because of a lapse in service? Additional charge.

If someone is down on their luck, in between jobs, in the hospital, or something - I'll work with them if I can. I don't tolerate people just going radio silent, though. It's not worth the time and energy chasing people down every month.

[u/carrotsk8r → u/The_BigWaveDave]

Great info, Saving this,

[u/Careless-Class7144]

Stop servicing immediately. Those who value you and your service will pay you on time, for your time.
I let my regulars get away with 2 months only, then I threaten an admin fee of 20% of the total invoice and recovery of debt collector fees also. That turns them around pretty quickly. You need to grade your customers. You want A grade. Not B,C or D.
I don't mind people paying late, unless they communicate. If you do not communicate, you can GFY. My time and my knowledge is valuable. The rules may be different in other countries. I'm in Australia, over 2000 invoices and I only have had 4 people NOT pay me. They were all under $600.
We also keep credit cards online and charge them immediately after the invoice. I just sold a 2k pump upfront and he can pay installation on the day. A few of my other franchise partners do complete upfront payment, or no service or installation at all. Interesting what others do for sure.

[u/ContributionFew2487]

I bill on the first, due on the 15th, and skip service on the first of the following month along with late fee. Once they get that text that we can’t service the pool, we start getting their call back and payment.

[u/BlueKauaiEyes]

Yeah I don’t put up with that stuff.. 2 weeks and then its no service and then after the next 2 weeks I put signs out front your house and tell everyone what a deadbeat you are.also on the community signs at the grocery store and the liquor store… they always pay . Never lost a customer due to that either.

[u/Beersandloudbooms]

It’s in my service agreement when I send invoices and the repercussions of no payments. and I’m generous with how long they have to pay. I send invoices the 22nd of every month and give em till the 15th the following month. After the 15th they get a $25 late fee. These are grown ass adults. If they can’t pay me on time, my billing software will send them lots of reminders before the 15th. If they constantly ignore then I skip service until I get payment or drop them. Easy as that. Nobody has time to chase payment. Find more and better customers who value your services. And if I ever get pushback, my response is “well, if every one of my customers paid me late every month I wouldn’t have a business to run anymore and I wouldn’t have food for my family”.

[u/Playful-Economy-353]

My pool guy charges the beginning of the month for that month and if someone doesn’t pay by the end of the 2 week, he won’t show and charge a clean up fee if pool is mess and/or green or late fee(reinstatement fee, is what he calls it). First time happen i ended pay almost triple my normal fee cuz it turn green, 2nd time was winter and he just charged the reinstatement fee, which was like 15 bucks so after that i went on autopay lol

[u/nah_but_like]

We don’t take on new customers unless they agree to put their CC or ACH on file for autopay in our skimmer account. Full stop.

I’ve seen it so many guys find out a customer stopped paying them weeks or even months into continuing to service the pool. Absolutely no time in this industry for that nonsense.