posted
We do some machine graphics for a very large company. The person that ordered them always made sure we got paid promptly. Until now, this time he quits the company and moves away. Two months go by without payment. His replacement calls up and wants more decals when I explain the situation he says they lost the invoice so make a new one and include the new order. Ok we do that. A month later they need more decals and still no payment. I tell them to pay up then I'll consider doing the work. A week later I get 5 calls in a day with different schemes to get me paid, charge card, personal check etc. Finally I feel sorry for the guy and deliver more decals.
Two weeks later I get a call from purchasing saying they will pay only 90% of the invoice. Take it or leave it!
This is why I charge big companies 3X my normal rates.... take it or leave it.
Does anyone else get this kind of treatment?
ernie
-------------------- Ernie Balch Balch Signs 1045 Raymond Rd Malta, NY 518-885-9899 Posts: 405 | From: Malta, NY | Registered: Jan 2003
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posted
Nervy bunch to say the least. Been a different story on a face to face basis. That would have gotten them a "kiss my aging, sagging a--" and talk to my lawyer.
bill preston
-------------------- Bill Preston Fly Creek, N.Y. USA Posts: 943 | From: Fly Creek, N.Y. USA | Registered: Jan 2000
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When they place an order, do they issue a PO with the dollar amount printed on it? If not, I would begin insisting that they do so before you begin production. That will prevent a lot of potential problems.
(uh oh.....I feel a ramble coming on......)
The simple truth is that this guy is doing his job - get the best price possible. I can't fault him for it. The sad thing is that his "method" isn't any different than a lot of companies I deal with.
My solution was to require a signed PO from the company with the total dollar amount printed on it. All pricing is negotiated before hand. In fact, I've produced a price list for each of "big customers" complete with quantity-based graduated pricing.
Such a price list has come back to bite me when they take my list to competing companies in search of a better price. And, these same customers have tried to play these competitors against us. Again, there is nothing wrong with that. Its competition. Sometimes I win. Sometimes I lose.
There is always going to be someone willing to do it for less. The only way to beat these lowballers is to kill the customer with service.
I've lost and regained some of my biggest customers that way. That's just the way it goes.
posted
Talk about ballsy. Buy something, take delivery of it (with invoice I hope), then try to negotiate the price? Must be some pretty good chemicals at the machine shop that they're sniffing.
So at one point they offered to pay by charge card? Great, they have a company card. They have now become a prepaid-only customer.
-------------------- Chris Welker Wildfire Signs Indiana, Pa Posts: 4254 | From: Indiana, PA | Registered: Mar 2001
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Call and tell him you have a big load of decals for him, so he should send a large truck over. Then load it with the paper he's floating and drive it through the front door of his building.
posted
This is why collection agencies exist and I use one. The hopeless collectables are paying and we get to keep about 75% of the original invoice less the 10%service fee for the collection agent. It's better than arguing and worrying. Typically we have a less than 1/2% collectible per year. The old 50/50 is very effective. Granted there are long term customers that you just do the work for, then collect, but then again life changes. Be prepared to make adjustments. It's just business, but there are generally people involved and people make mistakes. I've made one or two myself. Chances are if they are unwilling to pay, something has gone wrong on the front end. I'm the one with the sign that says "we are selling signs." It's up to me to set the policy and to enforce it. We have late fees and interest fees and returned check fees and a picture of Brando Corleone that gets attached to the e-mail. "Don't make me call Guido" A little humor can stir the sluggish payers. Ya gotta be creative. That's our best trick anyway!
-------------------- Larry Williams 184 Camelia St. Gulf Breeze, FL 32561 Posts: 21 | From: Gulf Breeze Fl | Registered: Mar 2005
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Accept the 90% payment immediately & bill them for the remaining. Don't give them anything in writing! Lie to them & tell them that is acceptable & would like to clean this up, then go after 'em!
You will likely lose them as a customer, but who cares!
If they don't pay the rest, send it to a collection agency.
Make sure on the remainder 10% bill add a note right on the invoice that all collection & court fees to be paid by the delinquent billee.
-------------------- Michael R. Bendel Bendel Sign Co,. Inc. Sauk Rapids, MN Posts: 913 | From: Sauk Rapids, MN | Registered: Jul 2005
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