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Dealing with a client that doesn't pay. What to do???

inthesignbiz

New Member
Had a customer owed us $1500 that didn't pay.
After 3 months, finally, contacted a collection agency.

They were meaner 'n rattlesnakes.
The first day they called 10+ times
and spoke to every employee there
telling them that they were going to send
people down to take pictures, statements,
and file liens. Scared 'em all.

The lady came in the next morning and
paid. I was out 20% to the agency.
 

Mosh

New Member
See if she will trade it out in chickens and pies! We do that out here all the time!!!!
 

jasonx

New Member
Whats ironic about our society is that if you went into a restaurant and walked out without paying its theft. You can't say hey invoice me I'll pay you later.

But in a business to business transaction this happens all the time.
 

Deaton Design

New Member
I apologize for my post above. Had a bad day yesterday, and typed before I thought it out. It aint my regular way of dealing with situations or people. I shouldnt have said it, and regret that I did. Guess it struck a nerve, but no excuse. Very sorry for it.
 

John L

New Member
I apologize for my post above. Had a bad day yesterday, and typed before I thought it out. It aint my regular way of dealing with situations or people. I shouldnt have said it, and regret that I did. Guess it struck a nerve, but no excuse. Very sorry for it.

That's decent. Hats off to you.
 

grafixemporium

New Member
Flame craiglist rants and raves , use a ladder to attach signs on telephone poles so they cant take them down , cite mold and fungus in water , I lost my big toe due to unsanitary conditions at my foot is rotten and blu nail salon .What ever you do don't let those scum bags off the hook . Call the owners mother and say that she was in a horrible accident . 3 shrimp in the car door panel .

Mental note: don't piss off btropical
 

iSign

New Member
Whats ironic about our society is that if you went into a restaurant and walked out without paying its theft. You can't say hey invoice me I'll pay you later.

But in a business to business transaction this happens all the time.

only happens if you let it
 

sam gha

MDGS
Same things happening to us, even we required 50% deposit now i raised to 60% that will gurantee for me at l.. The material ..
Any way we estimate first in form, then you let them sign a sales agreement pay 60% ( sorry this is my policy ) and 40% on completion, cause once you start designing you start loosing time.
Now i reached that point when i will forget about all people that didn't payt in 2009 and start new policy in 2010 no money no work or somewhere else . I learned my leasson no more and tell you something i know as business we will face about 10% like those people so live and learn ....
 

sam gha

MDGS
Same things happening to us, even we required 50% deposit now i raised to 60% that will gurantee for me at l.. The material ..
Any way we estimate first in form, then you let them sign a sales agreement pay 60% ( sorry this is my policy ) and 40% on completion, cause once you start designing you start loosing time.
Now i reached that point when i will forget about all people that didn't payt in 2009 and start new policy in 2010 no money no work or somewhere else . I learned my leasson no more and tell you something i know as business we will face about 10% like those people so live and learn ....
__________________
 

heyskull

New Member
We tell customers to pay up front in full or 50% and on day of completion in full.
I've lost way too much money over the years.
Friends and family all money up front. They're the worst payers.

Get someone to pick bits of the graphics especially opening times and phone numbers....

I fitted a job on Friday and walked away with £5,000 in cash in my pocket!!!!

SC
 
just my opinion here. if 50% doesn't cover your material expenses you need to reevaluate your pricing.

if i had to estimate i would say that on average material costs are only about 15-25% of any project cost.
 

Malkin

New Member
just my opinion here. if 50% doesn't cover your material expenses you need to reevaluate your pricing.

if i had to estimate i would say that on average material costs are only about 15-25% of any project cost.

Agreed. Even less sometimes. Printed banners have probably 3% to 5% material costs.

Anytime it's more is when it's a straight resale situation; mark it up and it's ut the door, no labor.
 

artray

New Member
I say send her the opening thread on this topic and a good bit of these replies.
Maybe even put them in a little brochure and pass/hand them out to other businesses she may deal with. A sort of 'watch out for her! info print
 

anotherdog

New Member
Interesting to read the different approaches.

I do like the idea of covering it over with removable vinyl, is that vandalism? I also like the dead-beat sign by the side of the road, but in the end the real mistake was made by the sign shop. Having no up-front charges may generate extra business, but you are certain to hit the rocks sooner or later.

You compound the mistake if you get angry, take the signage off or stuff a potato up a tail pipe. it's business.

You may have to walk away without the money...Hold your head up high...and if a few weeks later someone sprays paint stripper on the windows...well that's business too.

Seriously though, I like the collection agency most of all. Nothing you can do will hurt like a burnt credit rating.
 

Sticky Signs

New Member
Well thanks for all the good advice. I'm happy to say that I finally won this battle. I took a drive down to her shop. The first thing I notice is she had someone else take my design and make her a sign for the sign face above the windows. Now I'm shaking cuz I'm so pissed. The next thing I notice is that the open sign is turned off. Funny, it's normal business hours. I walk up to the front door and it's locked. Now I'm pissed and worried. I went to the shop next door and asked the girl if she knew the folks at Blu Nail. She said no but she had heard that they had been shut down due to health violations. HAHA, go figure. I tried to call both the shop as well as her cell. No answer and no answering machine. I spoke with my partner and decided we'd send her to collections. They keep 25% of the total bill. Oh well, it's better than nothing.
In the mean time, I called my buddy who owns a hair removal clinic. When I asked the client how she heard of us, she said she was a client of his and that he had referred her to me. After speaking to my buddy, he told me that they had no record of her as a client. So now I'm thinking - Great, I was set up from the beginning. I decided to wait till the next day to get collections after her.
Out of nowhere, she calls me the next day and apologizes and tells me that she's had the money all along (yeah right) and she wants to meat up in order to pay. Tells me she call tomorrow to make arrangements. I didn't hear anything for 4 days. So I started calling every hour on the hour. Still no answer. At the end of the day, I sent her a text message (cuz everyone with a cell phone gets those). I told her she had until 4 p.m. the next day otherwise I will send her to collections. Plus I told her that I'd sue her for Copyright infringement for using my design which she had not paid for. She called me the next day, came to meet me and handed me an envelop with a bank draft for more than the total amount owing. She again apologized and made up a bunch of excuses. Either way, i don't care because I got paid and I never have to deal with her again.
In the end I still can't figure out why she would go to such lengths to try and screw me because she did end up paying. I'm guessing she a pathological liar or something. Anyhoo, that's how it all worked out and I think I've learned few lessons in the process. Cheers!
 

Checkers

New Member
"In the end I still can't figure out why she would go to such lengths"

Two reasons...
1) there's a sucker born every minute, and
2) Most people don't have the tenacity to go through the collections hassles.

Checkers
 
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