How to encourage a client to pay

[fondini]

vinney

vinney

if vinneys busy get his brother knuckles

 

[charlietuna]

$1700. too little to hire attorney! This is a case for Small Claims Court, thats what they are for! Locate the nastiest neighborhood located Small Claims Court in the county that the work was done and file for $1700. plus court costs! Get your paper work in order--date started -date completed and bills!

 

[MrMilbank]

so often we have done work without a customer asking what does this entail and how much will it cost. And likewise we start the work not knowing how much were going to charge or how long it will take. Work gets completed and invoice gets written up and they pay whatever it is. More and more often im seeing the need to write a contract and just add on extras to that. its more paper work but it might save me in the future

 

[Rewire]

so often we have done work without a customer asking what does this entail and how much will it cost. And likewise we start the work not knowing how much were going to charge or how long it will take. Work gets completed and invoice gets written up and they pay whatever it is. More and more often im seeing the need to write a contract and just add on extras to that. its more paper work but it might save me in the future

Would you like to play a friendly game of Russian roulette? I use to say I never had a problem getting paid by a customer,I no longer can say that. I would have people tell me I needed to get things clearly in writing and I would tell them I have never had a problem collecting but I cannot say that anymore.

 

[vinster888]

Not legal. Once it is installed, you can't legally remove it.

Signed contract on ALL work, before work begins.

the same contract that said they would pay upon completion. or the one with the stolen equipment. ill take a jury of my peers any day.

 

[AV ELECTRIC]

Let them know that you are slow and need to pay bills. If they cant pay the whole invoice at this time can they pay a percentage of the bill . Sometimes people think you have a business and you have lots of money so your not at the top of the list for payment .Its your money you worked hard for it. I would talk to your good customer and let them know the relative you that you referred me to hasn't paid me could you look into it for me. If your busy and have lots of money and don't have the time hire someone to get your money. If not do what it takes to get paid .

 

[bbaumer]

An electrician friend of mine once had a customer who wouldn'g pay tell him "you can always take legal action".

My momentarily stunned friend replied "Buddy, if I were you I'd be concerned about the illegal action I'm gonna take!"

The customer promptly paid.

*****Not recommended. Shared for enjoyment of the readers only *****

 

[wawireguy]

I'd have to say lawyer. You're gonna run into a lot of non-paying customers I would imagine. Send them to your lawyer, have them billed for his time also and keep doing what you do best, doing electrical work and selling your business. You could waste a lot of your time or just get a reputation for being no nonsense when it comes to billing. 90 days and they get liens and your lawyer in court.

 

[Brian Oshman]

Get a collection agency. The one I use wants 20% of the bill but if you put in the contract, which I put on my invoices that the customer will be responsible for the collection fees then you will get 100% of your money if they collect and the collection agency gets their full fee too.

Everybody wins except the dead beat trying to screw you. The customer ends up paying more in the end. A contract is a contract.They also report to the big three credit report agencies if payment is not made. If they do not collect then there is no expense to the collection agancy.

Small claims or a local judgment does not appear on their credit report and is not much of a deterrent. The collection agencies tend to get good results. Unfortunately you will have to pay the percentage of the bill on this one since it was not on your invoice ahead of time but in the future place this on your invoices and you can collect the full amount and additional to cover the collection expenses.

The amount is not large enough to get a lawyer involved. If you want info on one PM me and I'll give you the info. I am in Jersey too.

 

[PetrosA]

Ivan

Ivan

Forget Vinnie. The Italian mob is so... worn out. I'll bet you can find this guy I heard about named Ivan, from Russia or the Ukraine (can't remember which) who for $50 visits your client with a shovel and a lawn mower. When he's looking at his lawn from grass height and sees some crazy dude pull the starter, $1500 doesn't seem like a whole lot of money

Really though, the collection agency is probably the best bet. If they can't get the money back, at least you might have the satisfaction of pulling the guy's credit score down a few notches.

 

[celtic]

ok so i guess i have 2 options: continue to call him and hear "I'm gonna take care of it" or pay a few hundos to get a lien attorney to send a letter. Does anyone have a similar experience where they got results?

more info: this was not a contract job. he signed nothing before work began. everythying was riding on the account history of the reffered relative who was reliable and does not call back at this time..

all repair work, no permit

You may be SOL on this one.
There is no documentation to prove you did anything.

"Repair work" does always constitute a "no permit" job...if a permit was in fact required, a "savvy" HO could spin the charge right back on to you.

The fact that there is no contract also does not bode well for you.
In NJ [going back to 1/1/06] contracts exceeding $500 are required to be in writing [among other requirements under the HICA].

More and more often im seeing the need to write a contract and just add on extras to that. its more paper work but it might save me in the future

"might" :-?
It WILL save you.....at the very least it will save you from a spin doctor laying this on your shoulders and you being slapped with a few thousand dollars in fines payable to the DCA/BOEOEC.

Here are some links to help lull you to sleep some night [BTW ~ it's required reading material]
Statutes and Regulations [EC's]

[Under the HICA heading]

• Home Improvement Registration Statutes
• Home Improvement Contractor Registration Regulations
  
• Notice of Adoption- Display of Registration Number on Commercial Vehicles; Display of Division of Consumer Affairs Toll-Free Number​

 

[MrMilbank]

the work did not require a permit. I always file when required.
I have a contract unsigned detailing the work and cost. the job started as time and material. on 3 seperate days. so there was no way to know ahead of time it would exceed $500.
It was a loss i could have prevented with a contract on the date work commenced.

 

[MrMilbank]

Check arrived in mail today. Thanks for the help and info. I supose the last few phone calls I made were motivating.

 

[mivey]

Now if will just clear, you are in the clear.:smile:

 

[daleuger]

NO KIDDING! We've gotten 3 cold checks in the last two weeks. We're gonna need Vinnie if this keeps up.

 

[celtic]

Check arrived in mail today. Thanks for the help and info. I supose the last few phone calls I made were motivating.

I am happy to hear you were paid...but...

t
I have a contract unsigned detailing the work and cost.

...an unsigned contract is just a piece of paper.

I'm not trying to bash/flame you [even if it appears that way]....I just don't like hearing that guys did a job [legitimately] and have to endure stress to get paid.


Good luck!
:smile:

 

[MrMilbank]

thanks celtic.

 

[hardworkingstiff]

I just don't like hearing that guys did a job [legitimately] and have to endure stress to get paid.

AMEN! It seems this is going to be happening more these days.