Why do customers argue so much over late fees when they clearly paid late?

Question

I own a small business where I provide wedding services and the contract specifically says that all "Final Changes and Balances are Due__________ (late fees applied after this date)". We carefully explain this date and then the customer initials next to this final due date. We even give them a courtesy call before the due date so they won't get charged the late fee, and they still pay late. But that's not what upsets me. It's their indignant attitude and getting all pissed off and arguing with us over it. How do I nicely inform customers why there are late fees. And how do I properly address the issue without it getting any uglier than it already is?

Answer 1

These kind of people just refuse to take responsibility for their action,or the lack of action, and blame others for their irresponsibility. Just about anything you say to these people, will end in negative confrontation.

Answer 2

RAISE YOUR LATE FEES AND I WILL EXPLAIN WHY............I work at a bank and I get yelled at all day long about NSF fees being charged to their account. I am sure you know that banks charge a $33 fee for each time they use their check card and there is no money in their account. So if they call me because they received 5 late fees @ $165.00 charged to their account, they said WHY?????? and whine and moan and groan and stomp around.. So I explain why the fees were charged but then I say, I will give them a courtesy refund and I will credit back $85.00 but that is all..... That usually calms them down and they saY OK thanks..they are happy.... What you could do is something along the same line. Don't ever reverse all the late fees but charge a higher amount of late fees than you did before. So when the customer calls stomping around explain why it was charged and then say, Ok I will give you a credit back of half. That way you have already raised your late fee amount so if you have to credit half of it back to make them happy and be quiet than you can still make some extra money and most of time the customer will be satisfied with that.. They really know they are in the wrong so they will accept some type of punishment. I guess being in the wedding business you must run across alot of bridezillas and I know they are the worse. It seems these brides have an aire of entitlement. Like you owe them and you must serve them and bow down.... Don't ever ever waive the whole thing because that will get around. Just raise the late fee amount that you now charge and credit some back if they call and complain..

Answer 3

People have gotten used to the idea that late fees are negotible. As long as the fees are not outragious (like some credit card companies that charge 3-4 times the minimum payment) it is the same as taking out a small loan. They are asking you to cover their expenses for longer than you deam reasonable. I really can't give you an answer other then making it a seperate sheet where you actually talk about it. I know a lot of people just initial things without thinking about it.
On the other end, you are able to ask for late fees. We are a manufacturer and have several large repeat customers who pay average 45-60 days even though terms are 30 days. We can't charge them because they might take their business away, but you do run the risk of no referral business if you anger them too much.
Maybe have a 1% late fee added every month until paid.

Answer 4

Because late fees are usually ridiculously high.

The fee for being late on a credit card payment can be over 25%. Credit card companies have started making more on late fees by mailing the bills closer to the due date. Deliberately not updating address information, etc...

It has gotten out of hand.

Answer 5

Very in basic terms, what's going to take place is that the owner won't evict you. they are going to prepare your account as owing $25 and once you pay the subsequent months lease, take $25 from that value and word it on your late stability. this suggests which you will have not paid the entire quantity due for April, and could be late returned. this would upload yet another $25 late value to the account, giving a late quantity of $50. In would, once you pay your lease, you're growing to be the 1st $50 utilized on your late account, and yet another $25 charged. In June the technique will repeat, and in case you progression, the funds would be deducted out of your protection deposit. whilst a destiny landlord tests your references they are going to see which you're presently late on your lease. this suggests which you will have a situation getting a sparkling place to lease, or in case you attempt to purchase, getting a private loan. You had the possibility to envision the condominium which you have been renting beforehand of shifting in. The door (that became common to interrupt into on your words) became there so which you would be able to work out. The rainwater situation is something that they could have fixed, and apparently that they did so. a loss of warmth in 50 degree climate isn't an emergency. that's uncomfortable, yet you will no longer go through any serious harm. it style of feels you're unhappy with the region you reside, and p.c. to "punish" them by no longer paying a value you owe. you're able to do this, yet you will in basic terms boost the funds due, and could the two have it taken out of your protection deposit, be sued for the soundness, or have the account sent to collections, which ability that's going to coach on your credit. Pay what you owe

Answer 6

Just charge a retainer fee and inform customers if they want their deposit back they should be sure to make full payment on the date due. People always want their deposit back, but if I were you i wouldn't make it some outrageous amount or you might scare off some people.

Answer 7

It's human nature...they want to be in charge and control because it was their money that paid you in the first place.....and choose your product.....

Answer 8

nobody likes partin with money