Francine V., Australia
Do you have written in your policies, fees that are late incur extra charges? If so, how much extra do you charge?
Leeanne I., Australia
$20 late fee, no exceptions.
Cate R., Australia
My invoice says no places held without payment.
Anna J., Canada
I charge $25 if an invoice is more than 5 days overdue. Invoices come out a few days before the end of the month and payment is due on the 1st.
Ian B., California
I started to make auto pay a default for new students. I read about a study done showing that late fees actually are not only NOT effective for service based businesses, they actually create an overall negative impact. It’s better to find ways of communicating with families about WHY due dates are important and how much their lateness impacts you PERSONALLY. The key is to make it personal.
The problem comes when parents or families unconsciously end up viewing the late fee as “the price of permission” instead of as a negative. They are totally ok paying extra in many cases of it gives them the flexibility and convenience to pay when they want). I’m not saying that you shouldn’t charge late fees. It still pays you for the extra admin time. But if you are thinking that late fees will actually reduce the number of families that pay late, you might be surprised.
Joy O., Alabama
I charge a $10 late fee for fees over a week late. I invoice 9 days before the end of the month, with fees due on the first but payable at the last lesson of the month.
Roberta B., Michigan
$25.00 per family member (so if two siblings are taking lessons, that is a $50.00 late fee. I have found I only need to charge it once for them to get the message. Lesson fees are due the last lesson of the month for the upcoming month.
Georgia H., Australia
You could put your fees up and then give a discount for those who pay on time. That way the ones who have always paid on time, pay the same as before, and the late payers pay the set fee. They may be more motivated to pay on time to get the discount.
Gabrielle K., Iowa
I just started making everyone have a card on file, and they can get a small discount if they pay in cash or check the day before the card gets run. If they’re late, the card on file gets charged. If the payment doesn’t process, a $2/day late fee is applied for the next two days, then I open that spot back up to someone else
Original discussion started February 28, 2018