Customer service

[murdock]

i wish it was all that simple...i have a few customers who are slow payer...i wouldnt drop them if they paid me 3-4 months late for some invoices...then you ask why would i be so stupid...the answer is simple...remember i have been operating for over 20 years...some of my slow payers have supported my bussiness for over 15 years(unfortunatly none of my customers have been operating as long as i have)...from building their factories/offices...moving the factories/offices to new locations and general maintenance...when the invoices are large amount then i insist on prompt payment.

today was a good example of a customer who has become a slow payer...becuase of the drop in the economy the demand for their product have dropped...so they have retrenched 70 % of the staff...and are strapped for cash...they call me out today...konowing i am gona battle to get my money on time...i go and service the customer...and you ask why...well when the going was good they supported my company and i made some good money out of them...i dont believe in kicking a person while they are down...in fact even if i have to do a few freebies while they are down...i will try and assist....this doesnt apply to all my customers.

[Citizen X]

"Credit is like black magic, the customer and the money dissapear!"

[Onetwo]

I have mentioned http://www.getting-paid-system.com/ before

It is a system of sending out reminders by email at certain times of the month before payment is due then more stridently after payment is due, the principal of he who shouts loudest and most often is the first to be heard, seems logical.

Fully agree.

[Blurock]

...konowing i am gona battle to get my money on time...i go and service the customer...and you ask why...well when the going was good they supported my company and i made some good money out of them...i dont believe in kicking a person while they are down...in fact even if i have to do a few freebies while they are down...i will try and assist....this doesnt apply to all my customers.

@Murdock, you have obviously built a relationship with your customers. You know who you can trust and who not. Although a potentially slow payer, at least you know you will be paid. Its important to understand your customer and his business.

This leads me to an important business principle;
Business rule # 3: Look after your suppliers. Pay them on time. You never know when you may need them.

Business Rule # 112: Loyalty pays.

It is the new and infrequent customers that you have to watch out for. The ones who have exhausted their credit at other suppliers and now want to take you for a ride...

[wynn]

A customer sent an order to a distributor for a large amount of goods totaling a great deal of money.

The distributor noticed that the previous bill hadn't been paid. The collections manager left a voice-mail for them saying, "We can't ship your new order until you pay for the last one."

The next day the collections manager received a collect phone call, "Please cancel the order. We can't wait that long."

[Ann.J]

Yes i am also aware such practices are involved in a comprehensive bad debt collection system and they are quite effective because many a times the debtors forget the dates they have to make the payments, regular timely reminders facilitate in decreasing the number of bad debts that occur

[Just Gone]

I am in the position where I install products. If you give me a bullshit story or avoid me and dont pay in a specified time, then still dont pay when I try to get hold of you ........... your system will cease to work !

[Phil Cooper]

I have advantage - if you don't pay, your Insurance cover ceases...

[Ann.J]

Well bad debt collection is different from industry to industry. ofcourse you are in a stronger position if your still have a portion of control in your own hands and the clients are dependent upon you, they have to abide by your rules. but for instance you have delivered the services in advance against credit, it becomes difficult to recover the amount quickly

[Blurock]

Strange that business schools teach you all about sales and marketing and maybe some HR, but nothing about how to actually run a business. Credit control is as important as making sales. Making sales are the dreams, getting the money in the till is the reality.