tips 'n tricks for getting paid faster

tips \'n tricks for getting paid faster

I started working for myself about 17 years ago. I started from scratch and worked from job to job, check to check.
Even stuffing brush into a variety of vehicles such as a volvo station wagon, honda accord, real old dodge van (ever cross cut brush in an enclosed van? blech!)
Getting paid right away was very very important as I needed money to buy more saw gas, food, pay my rent, fix equipment, fix the vehicle (again) etc, etc.

When a homeowner would say to me, "please send us a bill", it often meant that I would send a bill, and it would take a week or more to have that long espected check in the mail. Some folks like to 'age' their bills. and when the invoice is sitting on their desk, they would put is below the priority of other bills, so it would sit there for a long time.

Have you ever had a client say to you just when you are getting close to finishing, "I'll be back I have to run on an errand". They dont come back that afternoon...
So the first thing I would do is say, " Wait just a second, I have your invoice right here". "Oh, I am running out the door, I'll mail the check to you". I would say, "thats fine, here is a self addressed stamped envelope"!

Another trick is to say, "Please dont mail the check, I will be working around the corner tomorrow so please just pop it under the door matt and I will pick it up". Never mind that tomorrow I would be on the other side of town :)

Another trick, when I just had to bill them is to ask for their fax number/email address (I now have that space for including that on my proposal forms). Then I would fire off the invoice as fast as possible after completing the job.

In the case of having to mail a bill, I started to include the return stamped self addressed envelope with the bill. It is amazing that the simple job of assembling an envelope and pasting a stamp can sometimes take two or three days- meanwhile I would go hungry!
Have you ever had a client say "oh yes, I meant to get that in the mail but I need to go buy stamps"--a week later.

I never liked to ask them to leave a check if I was not yet done with the job.

Final trick is to get a P.O. Box for your business. This takes a whole day off of the mail delivery time.
I used to be shy about billing, but the fact is, when you do what you say you are going to do, and do a good job, their is nothing to be shy about.

I strongly feel that our trade is an honorable one, and I respect myself for being a professional. Billing is just another detail of that.

People are different from place to place I think. When I started, I lived in an area that seemed to be filled with deadbeats. Rich deadbeats, but deadbeats nevertheless.
In the area I am in now it seems like people pay more timely. Or I am more grumpy :)

Frans
 
Re: tips \'n tricks for getting paid faster

Why do people wanna be a$$es like that? And the more money they make, the more of a dick they are.

Some good tips there, Frans!


I like to let them know that payment is due upon services completed, unless we've made another agreement. I also let it be know that I will kill them if they don't pay up.

;)
 
Re: tips \'n tricks for getting paid faster

I hate working for corporations. They usuall cut checks on the 1st or the 15th of each month. So, I learned to schedule the work as close to those dates as possible. That way my wait time was less.

I have a customer in Boulder, CO who has $450,000 dollars invested in his trees alone!!! It is true. His property is like a private park. I am used to being paid as soon as the job is finished. Guess what? He says, "Oh we don't cut checks until the 1st and the 15th.---He runs his personal life like a corporation! He wouldn't budge either. I waited 2 weeks to get paid. If it were a busy time of year, I wouldn't sweat it much, but it was winter. Type A people bugg me.
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In contrast, I work for regular hard working folks often too. I find they pay immediately. (Maybe there is a mutual respect between blue-collar folks?)

I have had folks trust me so much that they leave me a check under a door mat before the work is finished.--Let's take it further. I have done estimates for folks when they were at work. They called me up and booked work with me. They told me they would be at work, but a check would be under the mat. I do the work, take the check, and I walk away never meeting the customer.--Weird.
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99% of the time I get paid fast and on the job. So, I can't complain much.
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Re: tips \'n tricks for getting paid faster

I also have a 'terms of payment' box on my proposal form that with customers who seem dodgy initial. Then at the bottom they sign the proposal giving me permission to do the work. It seems like if they have to initial as well as sign, the message gets through to them.
 
Re: tips \'n tricks for getting paid faster

My quotations allways read 'payment on completion when you will be presented with a VAT invoice' Seems to do the trick most of the time ;)
 
Re: tips \'n tricks for getting paid faster

I give people 30 days and then charge 2% interest per month printed right on the quote sheet. I am very leary of any technique that makes me look like I don't trust my client to pay.

Every now and then people offer to pay in advance for the work when I give the quote. I use to say "payment when the job is completed will be fine" but now I say "thank you, that will be fine."

I've found people are pretty good about paying for tree work. Over the past 20 years I've had very few no pays. I would not hesitate to take someone to court for payment and most all of my clients own the property where the work was done.
 
Re: tips \'n tricks for getting paid faster

I have always found homeowners to be pretty easy. You can simply field difficult from not difficult and bid accordingly.

Building contractors and property maintenance people can be an absolute PITA because they beat you up on price and then take forever to pay.
 
Re: tips \'n tricks for getting paid faster

[ QUOTE ]

Building contractors and property maintenance people can be an absolute PITA because they beat you up on price and then take forever to pay.

[/ QUOTE ]

This seems to be the case wherever you are in the world.

I like private residential customers only.

Corporate can take a freakin hike!

Small is beautiful!
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Re: tips \'n tricks for getting paid faster

I personally think that dealing with sssociations (like housing developement) are the worse. Mostly do to the fact you dealing with a whole board of idiots that cant decide what they want...and want the cheapest price etc
 
Re: tips \'n tricks for getting paid faster

True and then you have to wait for that whole board of idiots to sign the check. Oh, and that idiot single spinster cat lady on the board who nitpicks every detail before she will put her signature on the check.........
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Re: tips \'n tricks for getting paid faster

Good thread Frans. I have two or three jobs unpaid right now. I check my PO box daily and feel a little desperate doing so. I am in my first year of business for myself and am learning a lot of this stuff for the first time. Another local tree service has a pretty snazzy door hanger self addressed envelope that I want to copy for the folks who were not home.

I agree that corporations are the slowest to pay. I did a job for The Red Lobster that HAD to be done by the first. I shifted my schedule around to meet their emergency deadline. They did not feel the same haste when it came to paying. I waited over three weeks for that one.
 
Re: tips \'n tricks for getting paid faster

[ QUOTE ]
True and then you have to wait for that whole board of idiots to sign the check. Oh, and that idiot single spinster cat lady on the board who nitpicks every detail before she will put her signature on the check.........
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[/ QUOTE ]

That's funny because it is true.
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I had to do that last Spring. I had a list of 6 people to choose from. (I only needed 3 of the 6 sign). So, I knocked on doors by order of the list. I got it done, but I felt like a "pan handler." --I think I am going to drop that HOA. More pain than they are worth.
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Re: tips \'n tricks for getting paid faster

good stuff. i just finished my first year in business and havent been stiffed yet, but it does hurt to wait sometimes. i had 17,000 owed to me at one point and i was getting desperate!
i like the stamped envelope idea
 
Re: tips \'n tricks for getting paid faster

I have a friend w/ a septic bus. He was owed $ from a bar/ rest. so hae took all his employees to dinner. When the check came he tipped the waitress and stapled the bill to the check:)
 
Re: tips \'n tricks for getting paid faster

We have been in the game long enough that we have a policy in place to insure that we minimize the time lapse to be paid. It seems to be true that people with money don't like to part with it until they have to. With this in mind we ALWAYS spell out the terms of payment with the following types of people: Teachers/Preachers/RCMP/Doctors/Lawyers.

When working for certian businesses or towns and cities, it can be frustrating to get paid, make sure, before starting to work what their payment time frame is. We did a job that was quoted, budget approved, and signed off, and it took 120 days to be paid. I used to be shy about letting my clients know about terms of payment, not any more.
 
Re: tips \'n tricks for getting paid faster

[ QUOTE ]
I give people 30 days and then charge 2% interest per month printed right on the quote sheet. I am very leary of any technique that makes me look like I don't trust my client to pay.


[/ QUOTE ]

I agree. It's difficult, sure, during the winter and slow times to wait for that check. But a good business knows their ins and outs. We try (I say try) to have 1-3 months operating expenses in the bank at all times. In my experience, desperation fuels poor actions (See MasterBlaster "I will kill them", above).
 
Re: tips \'n tricks for getting paid faster

I was talking to a local "tree trimmer" (NOT an arborist, FWIW) about this and he offered the following:

When he was done with a high-end client's large job pruning several oaks, the client balked at paying. There was no dispute about the job or anything, he just didn't want to pay. So this guy goes to his truck and takes out his chainsaw. He went to the closest oak, fired up the saw, and placed it (idling) against the trunk. "I'll start here," he said. The guy produced his checkbook and paid for the job.

I'm not recommending this method, but it is an interesting approach
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