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Payment upon completion or mail an invoice?

+3
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Post by milspec6 Sun May 03, 2015 9:10 pm

I make it a point to spend plenty of time speaking with the customer rather than just showing up and jumping right in. I believe that the time spent helps change the perception of me from that of a stranger into something closer to a neighbor or co-worker. It makes the whole experience friendly and relaxed....normally get a few perks along with it (drinks, snacks, free stuff, and sometimes they even offer to help me to load up the van).

The problem for me is that once I hand them a bill on-site, I notice a distinct change in their behavior as I go from neighbor back into contractor. That bill makes them feel defensive and cautious again and I really notice the difference. As a result, I have gone to mailing invoices instead.

My theory is that we all pay so many bills each month that it is a desensitized process and they never assign anything but positives to our interaction. It's a theory anyway, not sure if it is accurate or not.

Obviously, there exists the greater chance of a deadbeat and there are stamp costs for those who don't use email, but I think it might be worth it.

What do you think?
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Post by dp1 Sun May 03, 2015 9:45 pm

If I mail my invoices, I can tell you there will be 20 - 30 % that will not pay, especially the move outs, and then it will cost a LOT more to hunt their behind for $ 150 bill, but if there are 50 of those $ 150 bills not paid, I won't be able to do my payroll at the end of the month, so my invoices HAVE to be paid when I'm done and absolutely no checks for me, I've had to argue with customers regarding this, so it's been about a year I tell my customers on the phone that I don't take checks and Amex.
I will take checks if they're repeat customers and they're not moving out.
We live in a different areas though. I'm Sure your areas still have decent people that will pay their bills.
Have you ever had people bailed on you and ended up not paying for the service ?
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Post by Davey Cracker Sun May 03, 2015 10:25 pm

I too, spend a lot of time with customers, making friends, and such. Only time I bill is if it's a vacant for a regular long time renal owner, or large commercial account. All residential payment is due upon completion......it doesn't become weird because they know exact cost up front (if a first time customer), or what to expect if they're a past customer.

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Post by Pro Touch Mon May 04, 2015 4:04 am

Payment upon completion of the job. I like to get to know my customers as well and I've never experienced any wierdness when handing them a bill. What I find odd is the ones that want to pay up front before I start working.
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Post by milspec6 Mon May 04, 2015 5:39 am

Maybe the weirdness is just with me then?

They know the price up front, so there isn't any sticker shock, but watching them study the invoice makes me feel like I'm doing something wrong...kicked their dog or something.

I've only been screwed by 2 customers in 7 years with not paying the invoice. In both cases, they were worth millions and still couldn't seem to pay bill. Mad
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Post by Ken Raddon Mon May 04, 2015 6:58 am

I spend a fair amount of time up front. I get few snacks tho. I however get no weirdness when it's time to pay.

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Post by Mo Mon May 04, 2015 7:50 am

Creating common ground and relating to your client is one of the most important aspects of this business.

Like some have said the costs are discussed up front the invoice is signed we are getting the customers approval and buy in on costs.

The relating doesn't need to stop when the check is being written. The fact is the reason we are there is to provide a service and to get paid.
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Post by ACpower1 Mon May 04, 2015 10:44 am

payment upon completion only in this business.

If its a commercial job that is doing regular business with you then thats fine, or most any business in general.

never for me with residential, its just creating extra work for yourself. I like to settle up and be done with that job right then and there.

Then of course there is all the move outs/renters that sometimes have to pay before even starting because you know how that goes....
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Post by ACpower1 Mon May 04, 2015 10:49 am

The big problem with having them pay later is the dog comes in from outside with muddy feet,   or the kids spills something the next day and then they havent even gotten the bill yet.  

Or they feel like your a small time carpet cleaner and you would be surprised how many people will test you to see how hard youll chase the bill down.  

weve all heard this one..   "oh ill put the check in the mail today"   a week later  "oh Im so sorry I forgot and have been busy,  I will put the check in the mail today for sure"

2 weeks after that...    "oh I put it in the mail on Friday,   you didnt get it yet!?"      

then they put it in the mail that day,   just dont have time to deal with all that on top of sending a bill out snail mail


checks are outdated,   I hardly even take checks anymore unless I know they customer is super legit
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Post by milspec6 Mon May 04, 2015 12:09 pm

I'm either out of date or just live in a sheltered area...I think I will have to re-visit my policy going forward.

This industry really has changed a great deal administratively over the last 15 years with the internet mobile visa readers. I guess I never kept up too well.

I guess I have always viewed carpet cleaning as a luxury service rather than a mandatory one (Residential market at least) so I expect those that order it have the money to pay for it.

Getting stiffed on a bill tends to prove otherwise.
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