Collecting from resi. non-payers

hi-temp hydro

hi-temp hydro

New member
I've always had the idea that I would never do a job that I couldn't afford to do for free. However it really gripes me that some folks want a service provided and try skip out on paying the invoice. I typically leave an invoice taped to the door if a H.O. isn't there and I tell EVERYONE that I will do this and if payment isn't sent in 30 days I know where they live and I will either show up unannounced to collect the funds or take something I consider to be of equal value.

I've had good luck by trusting people so far, but it seems like I may have my first collection in the works. I don't want to have to go through the hassle of having everyone sign a detailed estimate because of one bad deal, but who's to say it won't happen again.

I've even thought about filling up my tanks (600 gallons total) with muddy water to spray back on the residence where the non payer lives. I believe that would give me greater satisfaction...
 
I was thinking of something similar but for roof fungus, put the fungus back on their roof if they did not pay. hahahahahahaha

I had one very slow payer a while back but after a good talking, we were both on the same page about me wanting my money and I would be back in a week for the money or something of higher value so it could be sold for my money, the next week the check was in the mail box like he promised it would be when he called and left a message. He was not around either. I did get paid.
 
Residential should be COD period, unless it's a customer you know and trust. In today's market alot of folks are wanting to get the work done and pay you later?
 
hi-temp hydro said:
I've even thought about filling up my tanks (600 gallons total) with muddy water to spray back on the residence where the non payer lives. I believe that would give me greater satisfaction...
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Dont do that, o you may find yourself spending more on attourneys and bail that its worth
 
Russ Spence said:
Dont do that, o you may find yourself spending more on attourneys and bail that its worth
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Not to mention ruining your pump with muddy water!!
 
hi-temp hydro said:
I've always had the idea that I would never do a job that I couldn't afford to do for free. However it really gripes me that some folks want a service provided and try skip out on paying the invoice. I typically leave an invoice taped to the door if a H.O. isn't there and I tell EVERYONE that I will do this and if payment isn't sent in 30 days I know where they live and I will either show up unannounced to collect the funds or take something I consider to be of equal value.

I've had good luck by trusting people so far, but it seems like I may have my first collection in the works. I don't want to have to go through the hassle of having everyone sign a detailed estimate because of one bad deal, but who's to say it won't happen again.

I've even thought about filling up my tanks (600 gallons total) with muddy water to spray back on the residence where the non payer lives. I believe that would give me greater satisfaction...
Click to expand...


I lost thousands to non-payers in the dry cleaning business. I just assumed at least a 3% uncollectible rate and priced accordingly. After a while I started becoming aware of the tell-tell signs and refused to extend further credit.

ALL my customers were on a 30 day billing cycle. That's how I beat my competition and became the largest. in the Valley. Almost All of them were on automatic credit card payment. Looking back at my old spreadsheets on average I usually collected about this rate:

74% on time
10% late
6% +30
4% +60
3% +90
3% Writeoff -

You just have to assume it's going to happen sometime.
 
75% of my invoices are COD on residential. The other 25% are referrals. I leave an invoice with "payment within 7 days would be appreciated". 8 days later I'm on the phone. I treat $200 like $2,000. No reply from messages for 2 weeks I'm banging on the door at 7pm. No answer I leave a note on the door.

Never even threaten to deface property or take property. No judge cares what anyone owes you when you are in court for intimidation or theft. Door knocking for your money is within the law. So is small claims court.

For me it's not the money. It's the principle.
 
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