Question:

Is anyone having trouble getting paid once you have completed a job, such as pumping a septic tank? It seems to be getting harder to get your money these days. We go as far as telling customers when they call that we require payment when complete, and they still have some excuse not to pay. How many contractors add late charges for bill-out jobs if they are not paid on time?

Answers:

You might try to tell the customer that it is this price on completion and $20 more if you bill them. There are cell phone credit card machines out there. You can also just unload the truck back into the septic tank. They usually find a way to pay you before you get all your hose strung out.

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In my opinion a customer that doesn’t like to pay is not a good customer. They either have money problems and won’t be a customer for long anyway, or they are just playing games. Either way, the method that I have used is to increase the price.

If they go to another company, what have you really lost other than a headache? The ones that I have had problems with are nursing homes. At one such institution I had been charging a set fee per month and getting a check on the spot. They wanted me to start billing them, and when I did, the checks came about 90 days after I did the job.

So I upped the price by 50 percent. Then they started paying even later, so I increased it another $200. When I didn’t get paid for six months, I increased it again. They went another six months before sending me a check. I went to almost four times the original price and they still pay about every six months. But when I get paid, it is well worth the wait.

I have several customers who are paying four to five times my rate and I smile when they finally send the payment. I have had others flip out over the rate increase. Then I politely explain that with prompt payment, they can get back to the prompt payment rate. This is my way of getting over the frustration, and it works very well.

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We require payment at time of service, or no service. Before you start, make sure the checkbook is there and there are checks in it. Collect a deposit check against the work you plan to do. We take credit cards, which helps a lot in getting paid.

I know it’s hard to do, but you have to be hard-nosed about it. People will eventually start to realize you are not messing around. It’s just not worth it for us to work our tails off and not get paid, or to have to wait forever to get paid.

The plumber is getting paid; the appliance repairman is getting paid. Why not us? Make it policy and stick to it!