Slow Paying Customer Policy

[Dean May]

Don't hesitate to institute a special policy for this one customer. Talk to
them and if they are having cash flow problems you may or may not want to
help them by accepting monthly payments. For sure I would insist on 50% up
front for such a customer. 

 

If in the future you get stuck with large unpaid invoices, don't insist on
all or nothing. Ask them if they can make a partial payment. I've had
several paid off this way after many months of no payments at all. 

 

Dean

Dean May             cell 812.239.3359 

PianoRebuilders.com   812.235.5272 

Terre Haute IN  47802

  _____  

From: pianotech-bounces at ptg.org [mailto:pianotech-bounces at ptg.org] On Behalf
Of Farrell
Sent: Monday, June 04, 2007 8:07 PM
To: pianotech at ptg.org
Subject: Slow Paying Customer Policy

 

I'm looking for some opinions on setting a policy for a slow paying
customer. A company I have been building soundboards for several years now
has consistently been a slow payer. The last invoice they paid up was for
$3,500 - it was finally paid this February - they got their soundboards in
May of last year - eight full months to pay. And it was like pulling teeth.
I currently have an unpaid invoice for them - I have sent three copies of
the invoice - the last one with a very personal note in red ink - emailed
and phoned them. They owe me $1,500 - they got their soundboard panels last
October.

 

My policy has always been to take a soundboard order, build and ship it, and
then bill. Everyone I deal with pays promptly (thank you guys!) - except
this particular crew.

 

I love building soundboards for anyone. But I gotta get paid! I received
another order from this same company for more soundboards. I definitely need
to have all previous invoices paid up before I start on their new order - I
know that. I know many folks who do this type of work will ask for 50% up
front and the balance upon completion.

 

I have always been very timely with constructing and shipping their orders -
even on short notice. I'm thinking that because of their demonstrated
reluctance to pay their bills, it would be reasonable and really the only
sensible policy to ask for payment in full with shipment of soundboards
within two weeks of receipt of payment in full.

 

I hate to have to play hardball - and I know I might even loose this
customer because of it - but if I don't get paid, what good where they
anyway? I have little doubt that I have wasted enough time over the past few
years to have built a soundboard for someone else in the time I have spent
tracking down these slow payers.

 

I'm a one-man-show. I have no administrative help. I'm reasonably efficient
building soundboards and related things. I'm very inefficient at
administrative tasks. I probably spend ten times the amount of time doing
administrative things that someone more efficient at those tasks could be. I
just don't have time to spend being a bill collector.

 

Any opinions on a fair, efficient and productive policy for this client?

 

Terry Farrell
Farrell Piano

 

www.farrellpiano.com
terry at farrellpiano.com

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