Getting Payment

[Shovelhead]

The threat of violence seems to yield a high collection percentage rate.

 

[zmatalucci]

Unfortunately, I'm not set up to take credit cards. I wish I was so I could keep the cards on file and bill them as we go. 50% deposit, bam, on the card. Balance, bam, on the card. Problem solved.

You can setup a virtual terminal through intuit (quickbooks)
Very reasonable rates, money is in your bank acct. in 2 days. No equipment to buy. I have this for my monument co. -- very handy

 

[CheapVehicleWrap]

"payment up first, plain and simple.
I have learned to not trust good customers or friends. Sad but true.
I was walked all over before and you just have to put your foot down because if not they obviously don't respect you or your business."


Ahh the voice of experience.. Been beaten up so many times they call him scarface. I couldn't have said it better myself!

 

[trik]

This brought up a great memory from a few years ago. I had a customer I had done a bunch of banners for. He also saw my shop with boxes of t-shirts, he said hey any chance you could do 200 shirts by Sun, it was Thurs....maybe, how many colors? 1, great i am sure we can squeeze it in, let me call my dad and look at his production schedule. Yep we can do them. He comes on Saturday to pick them up, it was late as he added more banners for the event, paid me for all the sign stuff, and said he would come by Monday to pay for the shirts, no problem.

Of course he never came, after several calls, he dropped off $300 cash, great but we still have $1100 due. I decided to work with him, just make an effort I told him, never seen another dime! So about a year and a half later, I had moved the shop. The guy goes directly to my dad's screen printing shop not knowing who he was, to get more shirts done for the same event two years later.

My dad calls me to see if I can do a banner for this guy, I start to describe the guy to my dad, he said yeah that's him....lol Hey dad this is the bum who stills owes us $1100, tell him I will do his new artwork, banner, and we will print his shirts when he PAYS us the $1100 and everything else up front! My dad replies, well you know his family is very prominent in the community and it could lead to more work, are you crazy dad !!! I will be right there!!!

When I walked in the guys jaw dropped to the floor. Guess what, we got our money, we got more money for the work, and we continue to get their business, because we put our foot down, and I think they like our service and quality, or they feel guilty as hell, either way it works for me ....lol

 

[Gino]

Hello
I have a sign shop in a small town. I have an ongoing problem getting paid for my jobs. The worst payers are the people who personally know me. Being from a small town that is most customers. I started whipping out an invoice when they picked up their jobs (or when they order.) They say, "okay thanks we'll get this to you/wife has the checkbook/we do billing on Fridays." I'm thinking B.S. go to the fricken ATM! I don't expect to pay for things later. Eventully they pay me, usually after I have to remind them. I don't want to offend them, but feel they are being rude not paying me when the job is done. I let them walk out the door and kick myself for not being more aggresive. Any tips would be helpful! Thanks Ü

[FONT=&quot] [/FONT]
[FONT=&quot]You answered the most important problems already… so here’s a little re-assurance. [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Realize and understand it’s YOUR problem for letting these people out the door without paying. Once you stop doing this, you will notice a better cash flow. They aren’t doing a thing wrong. YOU are breaking your own rules and allowing customers dictate to you how to run your business.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]So, kick yourself like you said and demand payment or keep the product there until they pay for it. By the way, get a deposit of 50% in advance…… so these people have something invested. Otherwise, it’s too easy for them to say the heck with it and let you sit with a product you don’t want. [/FONT]

 

[copythat]

No need for signs saying anything.

As you are preparing the work order, you say ok the total will be X amount of dollars and deposit is. Which will leave you with X$'s upon delivery or pickup. I have 20 accounts that are 30 days. All others pay up front if it is less than $50, than we get 50% down. I love it when they tell me that I'm not going to be in business if I don't give credit. Here's the kicker. These are first time customers. I have 13 months left on my leases on 4 pieces of equipment. I make my payments due to the fact that I keep the money flowing. Yes it goes in one hand and out the other, but the other is thoses leases. Don't worry if you offend Your store your rules!

Friends don't let friend's go out of business!

Tommy

 

[copythat]

2 funnie

I'd bet that one of the reasons you started your business was so that you could be the boss and make the rules. So, start acting like one. The Godfather would say.....

http://www.youtube.com/watch?v=g2jAwiq6YsE

X-cellent!

 

[Vinylman]

Try This!

 

[grafixemporium]

Give a discount for paying on receipt.

That's the most ridiculous thing I've ever heard.

 

[Salmoneye]

I liked an old sign I saw that read "In God we trust, all others pay cash". Put a regular old cash register on your counter if you don't have one already. When "your friends" come to pick up their sign walk over and ring in the amount, say "OK, that will be blank blankety blank, cash, check or charge? It will ad a bit of formality instead of a "yo dude, catch ya later on the money thing" attitude. They might not be prepared for it the first time you do it but they sure will the second.

 

[JimJenson]

That's the most ridiculous thing I've ever heard.

Heres a snip from of the terms page from a very large supplier I use in Atlanta. It may be ridiculous to you, but it is more common than you think in the corp world.

PRICES; PAYMENT
Prices, title and risk of loss are F.O.B. our warehouse. Prices don't include taxes or shipment and may be changed without notice. Payment due within 30 days of shipment, net on open account less 2% for payment within 10 days of shipment. Visa, MasterCard, and American Express accepted for net invoice amount. Credit card arrangements subject to change. Open accounts available on approval.

 

[Salmoneye]

Jim, I think that is fine for a business model that almost exclusively deals with customers on account, I don't think the 2% discount would do much to entice the "buddies" not wanting to pay at a shop that deals primarily c.o.d.

 

[JimJenson]

Hello
Eventually they pay me, usually after I have to remind them. I don't want to offend them, but feel they are being rude not paying me when the job is done. I let them walk out the door and kick myself for not being more aggressive. Any tips would be helpful! Thanks Ü

Well, to each his own.
I read this as a problem with carring the receivables for friends. Tacking on a fee to drag ones feet over submitting prompt payment is not a far fetched suggestion, and widely accepted many large and small corporations. Further, the "fee" could be whatever one chooses. Unlike late fee's, there are no laws that dictate discount schedules as far as I know.

Hey, its a tip anyhow, take it or leave it.

 

[John L]

Discount on prompt pay (or for a COD) remains a good idea. IMO I think the mindset of these smaller customers would be that the standard 1.5 or 2% isn't enough though.

In their mind the discount is likely competing with "FREE!!! Get outta here!!!"

Like Jim says.. your discount can be shown as whatever you wish. Pump your retail price to cover it. Or maybe only offer it on large enough sales.

 

[Farmboy]

Order paid IN FULL when the order is placed. Period. We have a small sign on the counter that can't be missed. No one questions this policy. We do bend for county, state and college jobs. Everyone seems to respect and understand this policy. Lost a job a month ago to a company that wanted 12 yard signs. Told them we could have them next day but the order had to be paid before any work began. Their statement..."we don't pay until we get the item." They didn't get them and I thanked them for their interest.

 

[Monsterkidz]

Sorry, I am late to the conversation and trying to jump in. Why not promote a 5% discount on all order paid in full at time the order is placed? Seems like some of the trouble makers may jump at it to save a few bucks.

At my shop we do a 50% deposit and 50% on delivery/install/pickup. Seems to work, with some new clients it's a bit of a battle but hey that's business.

 

[mikefine]

You're getting text book answers. The fact is, you live in a small town and the business culture is different than most of our businesses. If you are going to change your practice, you'll need to be very discreet, or you will insult your customers. We have used the economy as an excuse for this situation. Expressions like, "There are lot of crazy things going on with the economy these days -- can you do me a favor, and pay me when you pick up the signs?
Thanks, really appreciate that."

 

[BobM]

Things are tuff,
Life is hard,
Pay me now with your credit card.

 

[royster13]

Whatever business model you choose, you have to make sure it works for you and your clients......I have always thought "big picture" and believed that by being more flexible with credit I have gained sales I would not have got....Now mind you my average is quite small....This year my uncollected is less than .5%....Yes there were some "long pays" but I still think I came out good....

 

[javila]

I've had people start walking out saying "when can I pick it up" before even reaching for their wallet. lol

As we finalize all the details, I break out the total "we need 50% to being work and the rest on delivery/completion".

Easy enough to set the dialogue if you ask for it.