How Can I Get Customers To Pay On Time?
The load-to-load mentality has developed over many years. Historically, propane marketers allowed non payment until customers needed their next tank of fuel. At one time, they could still realize a decent profit within this loose payment structure — but not in today’s economy. There is no payment flexibility when it comes to customers’ electric, phone, cable, and other utility bills. So they’ve learned to prioritize and pay those on time. The goal is to change the load-to-load mentality and help customers view their fuel bill as a utility bill. You can’t force timely payment, but you can encourage a change in payment behavior: Send invoices on time. Timely submission lets customers know that you expect the same. Identify credit terms. Your invoice should be accurate and easy to read, and it should prominently state your credit terms so there’s no room for confusion. Create a sense of urgency. Clearly state the due date in no uncertain terms. The phrase “Due Oct. 30, 2015” is far more impactful than “Payable in 30 days.” Emphasize benefits of prompt payment. Remind customers that timeliness is the key to maintaining a good credit rating and avoiding a credit hold.
