TIL adding a 'late fee escalation' clause got me paid in 3 days

I had a customer in Austin who owed me $780 for a logo pack and kept dodging my emails for two months. So I rewrote my contract to bump the late fee by 2% every week after the first notice, and I sent them an updated invoice with a polite note about the new terms. Has anyone else tried scaling fees like that or did it just push the client away?

2 comments

2 Comments

parker_webb3h ago

My buddy Dave runs a print shop in Portland and he tried this exact thing with a landscaping company that owed him around $1,200 for banners and yard signs. He added a 3% weekly escalation after the first 30 days (which maybe was too aggressive, honestly) and the client got super mad and posted a nasty review about him being a "predatory businessman." But weirdly enough, they paid the full invoice within a week of that review going up, so maybe it worked in some twisted way. Dave told me he's still not sure if the bad review was worth getting paid that fast, especially since he lost two other referrals from that area. I think it really depends on the client type, you know? Like some people will just double down when they feel pushed.

webb.hannah17m ago

Oh wow, so the secret to getting paid fast is just getting publicly roasted first... great system.