What do you guys put down on your invoices for terms? I usually have 15 days net, and receive payment 30 days later...lately ive been having a hard time collecting - seems like the companies that used to pay in 30 days, are extending it out to 90 days...It's killing me! no cash flow.

What are your terms? also, do you charge a percentage over, lets say 60, 90 days?

thanks, joe

One thing you can try is offer them 2% net 10. Give them a 2% discount if they pay in 10 days. Some companies do that with me.

Joe,

Try making it a non-problem with a little marketing follow up after the sale.  Make a follow up phone call AND a follow up visit at the site to ensure that they are satisfied with your services.  Help to build your relationship with the client.

Leave another card and some kind of trinket, related to your service.  I like to give them some spotting towels along with the spotter.  Most guys just give a spotter and run away.  Then the client has to go get towels on their own.  So they put the spotter under the counter.  Then when it’s time to use it- guess what? - They don't.  Why- "No towel".

I even tell them: "To help you the best I can here is your spotting chemical and your towels, just keep them together and you will always be ready to handle those minor messes."

Drop by like a week to two weeks after the job and tell them, that you would like to tour their building with them.  Walk around talk about the carpet AND their business.  Offer to vacuum their entry way for free while you are there.  Let the client see that the advice you have given them for FREE (about vacuuming) is important.  Let the employees see you in uniform their working to keep the carpet clean (since we do most of this at night and they don’t see us or think about it).  If you do residential too have business cards on you while you vacuum, I have had employees say to me- “If they trust you here, with this much carpet you must be good.  Can you clean my house?”

Anyway you get the idea, some more personal contacts of a friendly nature.  Make doing business with you three things- 1) An event, 2) With a friend, 3) Valuable.  That way when it comes time to pick up the phone when they haven't paid they are talking to a friend- not a vendor, a friend.  And you don't screw a friend like you do a vendor.

And not only that you refer them to your other friends and colleagues.  It will work like a champ to not only get paid quicker, but more jobs and more profitable jobs.

Del Scrivner
Owner/Operator
Cowboy's Carpet Care

Now that Cowboy gives out some good advice. The Lone Ranger never gave Tonto that much good stuff.

Del,
Great advice.
Jamie

Ray,

Ever heard the old Lone Ranger bit that Bill cosby used to do?...Back when he was actually funny- way back in his stand up days.  The man was a riot.  Lone Ranger, Chicken Heart (my favorite), 9th St. Bridge, Noah (yeah the Ark), Go-Carts- hillarious stuff.

If not the Lone Rager used to give Tonto the gift of getting beat up every time he went to town on a "scouting mission".  If you have never heard it find it and laugh for awhile.

I personaly never cared for his TV show.  As a stand up the guy could make you fall on the fall from laughing soooooo hard- and rarely a cuss word too. Now that's class.

Del Scrivner
Owner/Operator
Cowboy's Carpet Care

Thanks for reminding me about Bill Cosbys stand up routines Del. He started out on the old Ed Sullivan show and was funny. I never cared ofr his TV shows either

Hi-Jacked, I am sorry, how did we get onto cowboys and indians anyhow? It's been a long day here, and my total revenue for the day was -$127.00

I use a good collection agency.
I'm getting a little sick of this 90 days BS!

it's been becoming more a problem for us to Joe. haven't been stiffed......yet.

1 contract-client recommended i add 10% to the invoice, and state below it that if payment is received within 30 days that the actual amount owed is 10% less (which is the actual amount i quoted). he recommended this for his own business cause he knows the girls in acccounting are slackers.

i did this for the 1st time with him in March. 50 days later i received payment with the 10% added....works for me. i do the next quarterly this saturday a.m.

just 1 idea, play with the numbers as you see fit.

take care Joe --- Derek