Every business runs into a tricky situation once in a while, but few situations can be as awkward as having to confront a customer who hasn't paid. In a lawn maintenance business, this problem can be particularly challenging, because-- unlike at a grocery store or restaurant-- the tab isn't always delivered immediately. Instead of feeling so uncertain about how to handle the situation that you don't do anything at all, use the following tips to get the payments your business deserves and depends upon.
Have a process to identify who hasn’t paid.
The first step in getting a customer to pay for your services is to figure out which customers have outstanding invoices. Hint: HindSite's field service billing software can help by pulling information from your accounting platform - like QuickBooks or Sage 50 - and enabling you to see who has an outstanding balance.
One way to make sure a customer pays on time is to send them bills on time. Again, field service billing software can help by enabling you to collect all the information you need to bill in real time, and then sending that data to QuickBooks for invoicing.
Use software to keep track of a customer’s balance
Should a customer call and ask what they owe, it's always best to have the information just a click of the mouse away. Although there are many ways to organize billing, software makes it easy to access and organize the billing process. We might be biased, but our field service billing software can make this process seamless.
Don’t use email – call them or talk face-to-face about it
Everybody has those days where life gets busy, the to-do list gets long, and the emails in the inbox pile up. Life happens, but so does business. That's why it's so important that you contact your customers in a way that gets their full attention. Instead of being one email in an inbox of one thousand-- or worse, ending up in the spam filter--try calling your customers or meeting them face-to-face to discuss payment. This ensures that you have their full attention and they are aware of the situation. Human interaction is more memorable and impactful than a message in an inbox and much more likely to yield results. Furthermore, effective communication is vital in any successful business.
Be willing to negotiate – some money is better than no money
As we stated above, having an in-person conversation is one of the most effective ways to discuss payment with a customer. After that conversation, most situations regarding payments work themselves out, but when worse comes to worse, it's always good to have a plan B. If a customer says they are unable to pay the full amount, it is best to have an honest conversation with your customer about what they can afford to pay for your services. Receiving a portion of the payment is always better than receiving no payment, although neither situation is ideal. It is important to stress to the customer that this is a one time thing; however. No customer should take advantage of your business by refusing to pay the full amount agreed upon or by constantly trying to negotiate a lower price.
Be willing to stop servicing the property
Although it can be hard to cut ties with any customer, sometimes it is necessary to rid yourself of a toxic business relationship. When a situation involving payment happens repeatedly, it may be time to focus your attention on customers who value your services and respect your business by paying on time.
Now that you've figured out how to deal with customers who don't pay, why not focus on how to improve the customer loyalty to your lawn maintenance business? Download our free eBook, 20 Ways to Improve Customer Loyalty, today!
