Whether you are in the snow plowing business or the landscape management field, you will probably get stiffed on a bill at least once. It happens in every business, no matter your industry.
Each late or unpaid bill is different, and how you handle each scenario depends on how strict or lenient you want to be with customers. The length of the relationship may play a part in your decision as well as the total on the bill. Below are some options on how to handle (and prevent future) late payments to your field service management business.
Meet face to face. Sit down with the customer face to face to determine why they were not able to pay you on time, or in some cases, at all. Having a conversation in person, rather than over the phone, is one of the best ways to get a straight answer from customers instead of playing phone tag.
Offer a payment plan. Some of your more valued and loyal customers may be faced with their own financial troubles at the moment. A payment plan, with possible interest, is a good option to serve both sides.
Write up a plan that both you and the customer can sign to ensure both parties hold true to their part of the deal. You can determine the consequences if the payment plan is not followed based on your individual company.
Determine the “value” of the customer. How much profit will they bring to your business in the future? Before you lose your cool, or just the opposite, and are too passive about the matter, determine what value the customer will bring to your field service business. If it was one smaller service and they made no plans to have you come out again, it may just be best to let it go and inform your company to no longer service that individual. Losing out on money, especially money that you and your crew worked hard to earn, is tough. There is no denying that, but you also have to pick your battles. You have other loyal customers who deserve your time and attention.
Apply late charges. Applying charges is good for two reasons. First, the customer will be more likely to pay on time if they know they will be charged for a late payment. Second, if the customer does pay late, you will still be compensated for that amount of time you did not have their payment. These charges should be addressed either when the customer first signs up, in the contract, or on the actual invoice given to the customer.
Not being paid sucks. I am not trying to downplay that fact. But there are solutions to ensure you are paid the next time around or to ensure that time is not wasted on those customers who are more of a burden and waste of resources than a profitable entity.