COD late payments

[adrianh]

So you're actually saying that we should let clients walk over us, and take it with a smile?

I presume hat you are referring to this passage:

I think this is a very bad idea. What happens if you or the client is hit by a bus.
Yes ok the company owes you R800 or whatever but it doesn't give you the right to potentially sabotage the computer.

You got me, my words must be poetry if you can read this underlying meaning into what i said.

And you came to the conclusion that this is what I said, how?

Anyway, I still think that it is a bad idea to potentially sabotage a clients computer. I will not get into a huge pissing contest over R800. A client gave me R18,000 and asked me to build him some stuff whenever I get a chance, another spent R50,000 with me on and off, I owed a supplier R3000 for 7 months, he now owes me a couple of grand. I got called out today to deal with a fault in the restuarant extraction system, I didn't even invoice the client becase I know that he will pay me at the end of the month.

Look, its all give and take, you win some you lose some, you do our best to protect yourself but you do your damndest not to piss your potential clients off. A R800 deal today can turn into a R80,000 deal tomorrow. Don't be so shortsighted. If you act like a small time one man shop then you will be treated that way, if you act as if you are part of a large organization then you will be treated that way. Learn to play the part!

[Justloadit]

An old man once said the following "The only people who have taken me, are people I trust".

Very profound words.
There are customers and there are parasites. The thread started out with new customers, no history, it is the first time you are doing a job for them. It is a two way street, they do not know you, and you do not know them. They are trusting that you said you did the job, and you are trusting them that they will pay you.

So, how do they safeguard themselves and how do you safeguard yourself. If you are prepared to take the knock, by all means give credit, and spend agravating time trying to get what is rightfully yours.

The problem with a computer, as has been stated here, is that once you have taken it to a clients premises, and switch it on, there is no ways that you can retrieve it if the customer has not paid. So the password is a safeguard against this scenario.

From my experience, and please, I am not having a dig here at any religion, gender or colour, customers who state that they are reborn Christians, are religious, in the faith or anything to do with religion, at the first time we meet, is setting up the situation that you can trust them and take you for a ride. These are the scamsters, who play on your emotions.


Exiting clients, Adrianh, as you have stated, are not the problem here, it is the one time customers that are in question.

I am sorry but I get very offended when I am not paid. If the customer tells me from the onset, Victor, I have no cash to pay right now, but I need this done can you help, and I will pay you next week, then it is a different story, I have the prerogative to accept the payment terms or not. But, get me to do the job, and after I am completed it, give me the run around, well now that is an issue. The problem with new customers, is that you never know.

[adrianh]

@JustLoadIt - I understand what you are saying but you must understand that IT support is not a special occupation where different rules apply to other fields. If I call a plumber they make an absolute point that the invoice will be provided once the job has been completed and that they expect payment. What is the plumber going to do if I don't pay him, put all the stuff back in the blocked toilet? Is the electrician going to put a timer on the geyer so that the hot water stops flowing after 3 days? Is the mechanic doing to lock the petrol cap with his own special locking device?

I agree some customers are parasites - I have one customer that comes by and haggles about every price - I eventually said to him that we only do mail order and that we do not trade from my premises (I did this so that we are unable to get into a one on one confrontation)

Sound and Light City in Cape Town tried to take me for R12K. What I ended up doing with them was to send them a mail and said that I will start marketing on their behalf - that I would print flyers and hand hem out at the street corners saying exactly how they mistreat small business. I also said that I could market the flyers to their suppliers and customers. I asked them to consider that I am doing them a personal favour and that I do not normally provide marketing services to my clients. I went as far as asking them to select a colour for the flyer- I got paid 30 minutes after the mail was read.

I don't think that there is an easy answer other than making the point clear that payment is expected on delivery. An easy way to do this is, as I said before, to first go to their office, meet and greet and then say something like "sorry I'm a bit late, I just came from the bank to have my credit card speed point repaired. I hope you won't be paying by credit card, my machine will only be ready next week" Now the door is open ...they will waffle a bit and you can go on and say that you prefer EFT payments anyway- could they please do an EFT before you leave...they will waffle a bit but you can get to a yes or no. What I am trying to illustrate is that you can open the payment conversation indirectly and you can force them to commit to a payment method before you take the PC out the car. The client wouldn't even realize that he got pushed into making a commitment.

[Perform Computers]

adrianh: You've made a good point where if they think you small time they'll treat you as such.

Bear in mind, I'm a 1-man show, and R800 might be peanuts to you, but it's a lot to me for now.

Thx to all for the advice. I think this thread is borderline Fight Club. Dave, I have all the info I need. Please lock this thread if you can.

Thank you to ALL who replied.

[Dave A]

If the customer tells me from the onset, Victor, I have no cash to pay right now, but I need this done can you help, and I will pay you next week, then it is a different story, I have the prerogative to accept the payment terms or not. But, get me to do the job, and after I am completed it, give me the run around, well now that is an issue.

Great point. And you know what, I've never been let down by a client who negotiated terms up front. They've always paid. Maybe not quite as quickly as they had hoped at times, but they do pay. It's the ones that come after the job is done...

I think this thread is borderline Fight Club. Dave, I have all the info I need. Please lock this thread if you can.

Just robust discussion rather than a heated exchange, Andrew

Now don't be selfish and let the lads play

[Sparks]

I will have to start reading at the top again. I also want to know how to deal with the bum who phones at 21H00 because his power is off on the other side of town. When I get there I discover that his extension lead has a joint taped up with cellotape and is lying in the water next to the pool. As murphy would have it that was the last time the ELCB would ever trip. Now he has a new ELCB and will pay by EFT in the morning. 3months down the line still waiting. This is but one of many. I lose at least 30K per year through non payment. All small amounts (up to 3K) but they add up over a year. At the time of completion the client is happy but, just send him the bill, then your workmanship is the worst in the country.

[Perform Computers]

Hi SParks,

In your case I would demand payment upfront when you arrive. Asses the problem as you get there, quote verbally, and demand COD. it's 9pm for crying out loud. After hours fee ! If he doesn't like it, then he can call someone else.

[adrianh]

Ok, lets turn the problem on its head -I once had a small time guy quote me R2K to repair my driveway which is full of pot holes. They came by and spent about 3 hours making a total balls up. The work was absolutely horrible. What now, do I pay him R2K, do I pay him 1K or do I tell him to get lost?

Yes, there are customers who don't pay, but there are also people rendering horrific service. Now I'm not saying that there is a problem with your service - what I am saying is that there are 2 sides to the coin. What happens if the customer feels that his being done in, I'm not saying he is, I am saying that he may have that perception, what then?

[Dave A]

Ok, lets turn the problem on its head -I once had a small time guy quote me R2K to repair my driveway which is full of pot holes. They came by and spent about 3 hours making a total balls up. The work was absolutely horrible. What now, do I pay him R2K, do I pay him 1K or do I tell him to get lost?

Question - did you wait until he's called a few days later asking where his money is before you raised the issue of bad workmanship?

[adrianh]

No, fair enough, I let rip there and then. We agreed that I only pay him R1000.