TIL my dad was right about sending invoices with a specific due date instead of 'Net 30'

3 comments

3 Comments

My neighbor Jim runs a HVAC company and he switched to specific dates about a year ago. It caused nothing but headaches because customers who got paid on the 15th would call and argue about why their bill was due on the 10th. Net 30 gives people a clear window without the confusion of trying to match their pay cycles. Some of his bigger commercial clients flat out refused to pay on specific dates and told him to switch back or they'd find another vendor. The flexibility of Net 30 actually built more trust with his customers since they felt like he understood their cash flow situation.

shane_morgan18d ago

Haha yeah, "built more trust with his customers" is exactly how it goes, @juliaa65. I had a landscaper friend try the same thing and she lost two accounts in the first month because they were used to paying whenever within 30 days. People get really weird about rigid dates, especially when it falls right after a big expense like rent or mortgage. Net 30 just gives everyone room to breathe without feeling like they're being squeezed. Your neighbor's story about the commercial clients flat out refusing is textbook - once someone has the flexibility, trying to take it away feels like a punishment. Honestly, I think a lot of these small business owners overthink it, thinking specific dates look more professional, but customers just see it as extra stress.

drews5518d ago

Worked with a plumber once who tried billing on the 1st of every month... about half his customers just stopped answering their phones for the first week. Net 30 is way easier because nobody feels like they're being hounded the second the calendar flips.