Getting Paid (Small)

[mongoosesparky]

Hey Guys,
I just sent a tech to a job out of town, very simple attic fan replacement. Usually I send an estimate and have that approved prior to performing work but got very busy and never sent this one prior to the tech showing up. It was a 1 hr. job and my policy is a service charge ($165) covers up to the first hour of labor. Customer had all the materials there. Simple, but now the customer wont pay my service fee. Anybody got a good way to handle these situations? It's my own fault for not getting paper trail approval for my pricing in advance but the bill isn't that much. My service charge is reasonable. Let me know what you guys think, thanks.

 

[zbang]

Basically, the tech did the work and the customer won't pay at all? What were they expecting? (A good reason to be paid before leaving the job.)

For that much, I'd be inclined to send them a polite but firm letter and if they still won't pay, let it go; starts to cost more to collect than the original charge.

 

[LarryFine]

Basically, the tech did the work and the customer won't pay at all? What were they expecting? (A good reason to be paid before leaving the job.)

An oral contract is valid, too. A customer certainly won't claim that the contractor agreed to provide free labor.

For that much, I'd be inclined to send them a polite but firm letter and if they still won't pay, let it go; starts to cost more to collect than the original charge.

Not if you add the cost of collection to both the demand letter and the actual procedure, if it has to go that far.

 

[James L]

$165 is reasonable imho.

For such a small amount, I would be thankful it wasn't a whole week of labor. Then I would just let it go

 

[AC\DC]

What is there reason for not paying?
Did the tech happen to damage anything?
Are they claiming it’s to expensive.

 

[mongoosesparky]

What is there reason for not paying?
Did the tech happen to damage anything?
Are they claiming it’s to expensive.

They're claiming it's too expensive. No damage, the tech did a great job in a timely manner.

 

[LarryFine]

They're claiming it's too expensive. No damage, the tech did a great job in a timely manner.

Definitely pursue it. The customer has made it about the principle now.

 

[mongoosesparky]

Definitely pursue it. The customer has made it about the principle now.

Agreed. I don't think it smart to let people get away with theft like that, otherwise more people will try.

 

[RWC/NC.]

I'm seeing service charge rate of $165 for first hour. Which possibly you mentioned your rate(s) during first verbal phone conversation, w/the perspective client. (you made him aware of rates). Personally, considering that a reasonable rate. Did the service call go beyond (time wise) the first hourly charge (?) Secondly, if it's worth your time in pursuing this. I'd consider talking to an attorney, if judgement is awarded in your favor, maybe you can accrued the attorney fees also within the judgment. If nothing else, I'd @ least try to "ding" the man, on his credit report. But there again, nowhere on any of my past, or present certification(s) does it imply, Legal Counselor. (Attorney)..

 

[hillbilly1]

That’s why I seldom do residential jobs, commercial customers understand what it costs to run a business, residential customers are used to trunk slammers that will do it for a six pack. (And they are not insured, or licensed) You still have to pay your guy for travel, so it’s not out of line. I think Home Depot charges $200 to change a ceiling fan IF the existing ceiling box does not have to be changed. They have their markup on top of the subcontractors.

 

[AC\DC]

I nicely worded letter from you stating why the rate amount and how you did a good job swiftly. Then state if not paid will hand case over to lawyers.
don’t know how it will work but that Is what I would do.
I spend the money even though it will cost me more just to not let these people get away with it.

Also what is your hourly rate.? Is it the service amount.
I need to increase mine lol

 

[mongoosesparky]

I'm seeing service charge rate of $165 for first hour. Which possibly you mentioned your rate(s) during first verbal phone conversation, w/the perspective client. (you made him aware of rates). Personally, considering that a reasonable rate. Did the service call go beyond (time wise) the first hourly charge (?) Secondly, if it's worth your time in pursuing this. I'd consider talking to an attorney, if judgement is awarded in your favor, maybe you can accrued the attorney fees also within the judgment. If nothing else, I'd @ least try to "ding" the man, on his credit report. But there again, nowhere on any of my past, or present certification(s) does it imply, Legal Counselor. (Attorney)..

The service call was about 10 minutes over the hour so I round down and just billed a trip charge. What kind of experience do you have with lawyers? I know nothing about hiring a lawyer but I am getting more interested just to establish better ways to cover my bases and prevent these issues in the future.

 

[mongoosesparky]

I nicely worded letter from you stating why the rate amount and how you did a good job swiftly. Then state if not paid will hand case over to lawyers.
don’t know how it will work but that Is what I would do.
I spend the money even though it will cost me more just to not let these people get away with it.

Also what is your hourly rate.? Is it the service amount.
I need to increase mine lol

My hourly is $65 after the first hour. If the job is 8+ consecutive hours then I waive the service charge and just bill hourly. I'm pretty confident in my pricing and am thinking pretty seriously about raising them as well.

 

[hbiss]

If you don't feel it's worth to pursue, what I do is threaten a lien on the property. Go so far as to complete the paperwork and hand it to them in person. As you are doing that, mention that you really don't want to go through all this trouble. Then you ask him "what do you think is a reasonable cost"? Take whatever he offers and put his name on your "never do business with" list you should have on your office wall.

-Hal

 

[mtnelect]

I have a similar story ... with a twist.
I received a HVAC service call from a new customer. My invoices have all the California legal requirements ... I have the customer sign the authorization on the invoice to do the diagnostic charge. I find a defective condenser supply fan motor and provide the estimate for the complete repair. The customer agrees to the estimate. The motor is not one we stock, so I require a deposit from the customer, stating we will return with it tomorrow. I return the next day to install the new motor, the customer issues a check for the total amount of the invoice.

A month later the same customer calls and the other HVAC unit is now not working. This time it's the main control board, which we had on the truck. I didn't do the paperwork since this was now our customer and I had several service calls to answer during a heat spell. I told her we would send her the invoice through QuickBooks, and she can pay online.

After sending the invoice, QuickBooks verified that she received it. Her husband now states we were never there ! Found out later he was a real-estate attorney with a major firm.

After several sent invoices I gave up. In California verbal evidence is vary hard to prove and the judges usually just split the award.

I took a chance against my better judgment ... Never again, you must take the time to do the paperwork !

 

[RWC/NC.]

I nicely worded letter from you stating why the rate amount and how you did a good job swiftly. Then state if not paid will hand case over to lawyers.
don’t know how it will work but that Is what I would do.
I spend the money even though it will cost me more just to not let these people get away with it.

Also what is your hourly rate.? Is it the service amount.
I need to increase mine lol

I've had brainstorm moment (maybe) while stepping out onto deck for a smoke. You gentlemen running service calls to dwelling(s) . Seen an article today, the price of gasoline for combustible vehicles (your service vehicles) national average will be rising above $6.00 gal, supposedly this mid-summer. It might not be bad idea in forwarding an pre-prepaired electronic agreement, then emailing potential client (after first phone conversation) with your prospective agreed upon rates, requiring their signature electronically and forwarding the statement back to your place of business, before exiting in route and engaging into the call. Having a means of an electric footprint of agreement, between your business & potential client, understanding the rate agreement (ect) w/suttle stipulation in recovery, and requiment of electronically signed, could carry the addional weight in a court of law.

 

[RWC/NC.]

Took while writing that, while enduring multiple phone calls... Gentlemen, I don't think it's going get much better soon, and such situations could very well become more frequent. Enjoy your work..

 

[RWC/NC.]

The service call was about 10 minutes over the hour so I round down and just billed a trip charge. What kind of experience do you have with lawyers? I know nothing about hiring a lawyer but I am getting more interested just to establish better ways to cover my bases and prevent these issues in the future.

I one point in my life, I was preverbally "married" to a branch of the Court System. Ummm.. I paid attention??..

 

[Another C10]

My hourly is $65 after the first hour. If the job is 8+ consecutive hours then I waive the service charge and just bill hourly. I'm pretty confident in my pricing and am thinking pretty seriously about raising them as well.

That's a very competitive- reasonable rate in California, after similar scenarios I always either get a text dialog or email just for that reason plus I literally note very visibly my rates on my webpage to eliminate any misunderstandings 150.00 1st / 80.00 thereafter.

As far as the rare deadbeat client, I'll send them a polite email mentioning the rates and conditions , "hoping they acknowledge"
with a sincere mention of something like

" Hello ... Our records indicate no payment had been received for the services provided, to eliminate any further collections action please send payment today. Thank you. Sincerely ....Ben F

 

[LarryFine]

I do send a proposal/contract for most jobs, but I make sure the customer knows what the cost will be regardless.

For bigger jobs, I insist on a signed copy returned; for lesser ones, I'll accept a confirmation-of-acceptance email.

My contract includes a cost-of-collection item:

"If invoice is not paid in full within 30 days of the date of invoice, customer will be responsible for all costs incurred in collecting the amount due, including interest at the rate of 18% per annum from the original due date, court costs, plus any and all attorney's fees. There will be a $50.00 charge for any check not honored by your bank."