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Hosting Discussion > Operating a Web Hosting Business > Billing and Accounting > Charging a Late Fee? Do they REALLY works?
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  Post #16 (permalink)   01-19-2018, 12:39 PM
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Quote:
Originally Posted by invpsus View Post
We at one time renounced Late Fees, as this negatively affects the loyalty of our customers.
I think the use of this option is not the best idea
So if you late on your Mortgage, your mobile bill, your car payment, utilities what do they do, they will always add a late fee.

You have a bill to pay by a certain date, if you dont pay then you car charged a late fee as it costs the provider.

in hosting all your files are on your providers server, you dont pay, but expect the provider to look after your files/website for nothing, even if they suspend your account you files are still on their server until the time they terminate your account and your files are removed from the server.
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  Post #17 (permalink)   01-19-2018, 03:58 PM
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Originally Posted by easyhostmedia View Post
in hosting all your files are on your providers server, you dont pay, but expect the provider to look after your files/website for nothing, even if they suspend your account you files are still on their server until the time they terminate your account and your files are removed from the server.
Exactly !!

I can't count the people I've run across over the years that have thrown a fit about a late fee. Hell, I'm a reasonable guy, all you have to do is say "Hey, Tom, I'm going to be a bit late this month", and I'll waive this.... But, when it comes to hosting, this is the only business I know of where the customer expects the business to hold onto their data after they refuse to pay.

Put it this way:
If you rent a storage facility (container, garage, whatever), if you don't have your rent paid up, your crap is tossed out (or pawned) after a reasonable period of time. The same scenario exists here... Customers don't pay their rent, and they whine and piss and moan because their host threw out their stuff.
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  Post #18 (permalink)   01-23-2018, 06:57 PM
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Originally Posted by whmcsguru View Post
Exactly !!

I can't count the people I've run across over the years that have thrown a fit about a late fee. Hell, I'm a reasonable guy, all you have to do is say "Hey, Tom, I'm going to be a bit late this month", and I'll waive this.... But, when it comes to hosting, this is the only business I know of where the customer expects the business to hold onto their data after they refuse to pay.

Put it this way:
If you rent a storage facility (container, garage, whatever), if you don't have your rent paid up, your crap is tossed out (or pawned) after a reasonable period of time. The same scenario exists here... Customers don't pay their rent, and they whine and piss and moan because their host threw out their stuff.
Exactly! That what I ended up doing, don't pay? We give you a few days (suspended) but after that? The data and backups are out! No discussions.

Now of course as you mentioned if it "one off" thing then sure but if that is abused then we would need to have a word with the customer.
 
 
 
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  Post #19 (permalink)   02-19-2018, 12:46 PM
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Late fees are there to discourage people from not paying their bill on time, which helps keep YOUR costs down too. Every utility or service has a late fee or penalty of some sort.

Depending where you live, there are regulations on what you can charge for a late fee, and how much of a percentage that works out to. In Nebraska, there is a maximum percentage of 8% allowed to be charged as a late fee for leasing and renting (which includes web hosting as Nebraska considers it a lease of computer space).

So if you're charging $10/month for hosting, you can charge a late fee of $0.80, and that's a ONE TIME fee, you can not compound it for every month they are late.

Also, you'll need to verify with your accountant on how you're handling the books as to how you'll write off a late fee, if you're treating it as a loan to a user with fees attached etc.

Late fees have their place, but check with your state. Personally, it's so much easier to just collect the payment, suspend the user for non payment, then 30 days later terminate etc. If you want to perform white glove service, take a copy of the files for them and store them for "X" weeks or whatever, make the phone calls to help them out - but after that, it's out the door.
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  Post #20 (permalink)   02-19-2018, 01:30 PM
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Originally Posted by Harv45 View Post
Exactly! That what I ended up doing, don't pay? We give you a few days (suspended) but after that? The data and backups are out! No discussions.

Now of course as you mentioned if it "one off" thing then sure but if that is abused then we would need to have a word with the customer.
yes if a client approached up then we will remove the late fee, but only as a one off.

once we terminate an account (14 days after due date, which is 28 days after invoice generated) the latest backed up files remain on our backup server a further 7 days which we will only give to client once they pay the due bill. 7 days after termination the files are removed from the backup server.
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  Post #21 (permalink)   02-19-2018, 02:05 PM
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Late fees are common and accepted in the hosting industry. The key to collecting on them, however, is to keep them reasonable.
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  Post #22 (permalink)   02-19-2018, 03:45 PM
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Originally Posted by zomgmike View Post
Late fees are common and accepted in the hosting industry. The key to collecting on them, however, is to keep them reasonable.
you need them reasonable, but at the same time at a price clients are going to think twice about being late in the future
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  Post #23 (permalink)   02-20-2018, 09:07 AM
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Late fees sometimes proper and legal way. As we are storing the user's data and running their services without any issue though they haven't paid so there should be late fees.

Many clients used to pay the bills on time due to late fees.
 
 
 


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  Post #24 (permalink)   02-22-2018, 01:36 PM
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Originally Posted by webconfigure View Post
Late fees sometimes proper and legal way. As we are storing the user's data and running their services without any issue though they haven't paid so there should be late fees.

Many clients used to pay the bills on time due to late fees.
I agree, without late fees it would be chaos. Customers would theoretically just pay whenever.
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  Post #25 (permalink)   02-22-2018, 01:47 PM
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In the UK if your customer is a business then you can claim a late fee under the Late Payment of Commercial Debts (Interest) Act 1998

http://payontime.co.uk/late-payment-...st-calculators
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  Post #26 (permalink)   04-14-2018, 04:39 PM
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charges are not really mean actually late fee are the dates the billing date is still remain same .
And it is really have to happen because it is reliable for us also

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  Post #27 (permalink)   06-05-2018, 04:25 PM
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We do charge a late fee but kept it reasonable. Our clients know it is there and it gives them motivation to pay on time. But sometimes life happens and if a client is late and doesn't have a history of being late or making excuses, then i have no issues with removing the late fee as a one time courtesy.
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  Post #28 (permalink)   06-15-2018, 03:46 AM
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I always wonder why people find it difficult to pay late fees on hosting services, while they readily pay all other kinds of late fees such as the ones on their phone bills etc.
 
 
 


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  Post #29 (permalink)   06-15-2018, 11:05 AM
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Originally Posted by Kaustubh P View Post
I always wonder why people find it difficult to pay late fees on hosting services, while they readily pay all other kinds of late fees such as the ones on their phone bills etc.
Even some landlords and residential rental companies will impose late charges to your housing rents if your late and even in cases that you pay partially but don't pay the full amount on time.
 
 
 
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  Post #30 (permalink)   06-15-2018, 11:14 AM
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Originally Posted by Harv45 View Post
Even some landlords and residential rental companies will impose late charges to your housing rents if your late and even in cases that you pay partially but don't pay the full amount on time.
yes more and more companies do this these days and 1 sector has done this for many years (credit card companies)
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