WWYD-People who don't pay their bills

[nadasy]

I've just gotten to the point of setting my hair on fire-what's left of it, because I've been tearing it out....

I was given some blankets and shipping boots to clean and repair in Spring of 2008. Had everything completely finished in 8 days (jeans repair to seat, 4 xl stable sheets, new surcingles, hardware, a set of xl shipping boots which required new velcro and lining). Sent bill, after a month called and was assured check was on the way. Got many stories about bad times, sick horses, every excuse and no money. Advised that items would be rehomed if money was not at my mailbox in 30 days. (we are now at the point of 8 months). Okay, I am a sucker sometimes.

Person calls and wants custom items made in memory of family member. I advise that there is a 50% downpayment on custom work over $100. No problem. Money will be paypal'd. Drop everything to do custom work. Call and email order completed. Sending money this week, etc.

Fast forward 6 months later. Still no money. I have all the items. Spoke with buyer every week, and every week funds are on the way.

I suddenly realise that I'm giving way too much power to this person, and am out the time, materials and money. Now what to do with all of this stuff?

Horse clothing is size specific and not new. Very useable but still used. Shipping boots are used and size specific. Custom order is very custom in size and design.

I've been writing this post for 3 months and then deleting it before I send because I keep hoping it will work out.

I don't buy without paying. If I don't have the money I don't order something. I believe customer service is very important. I'm embarrassed about how naive I can be with people. In all the years of my business (26 for one, 12 for the other), I've never had a return or non-payment. Was my mind on Mars?

[Love My TB Consent]

In this economy, I'd either be requesting 75% up front, for the custom work. For the repairs, they should have been paid for before the work began. It's a crappy economy, and in that, I think people keep biting off more then they can chew.

Business polices have to change when you start losing money. I'd change them today if I were you. And FWIW whenever I've had a blanket repaired/cleaned, I always paid up front for services. Then again, I don't like being billed for things either.

[nadasy]

When I take work from large barns, they pay half-up for the washing, and when I deliver they pay balance. I've always gotten paid. For my custom orders - not blanket related, I expect full payment because most of my custom work may not to anyone else's sizing or taste. I considered this person a friend. I've purchased many things and paid up front knowing I would have to wait a week or two for the item if it had to be sent. Makes you wonder doesn't it? LOL

My online business requires payment when order is placed. This person had purchased custom orders from me before and paid on the spot when I delivered because I was there with the goods. This has been a long distance issue which I fell short on because I didn't expect to be stiffed. You are right, not any way to run a business.

[Chardavej]

Take measurements and send them to me, maybe one or two will fit one of the 12 horses here and I can buy them from you. Custom I don't care about if it's on a blanket, they're just out in the pasture and they can't read anyway. : )


I don't get it either, sorry about your frustration.

[trubandloki]

With any luck they will see your post and realize what a heel they have been and pay up pronto.

[coloredhorse]

Not in the same business, but also self-employed. Only with long-standing clients that have proven that they will pay promptly in accordance with our contracted agreement will I bill after work is completed. For all others, a 50% deposit -- nonrefundable for ANY reason -- is require before I even turn the first thought toward the project.

After that 50% is safely in hand (and an associated contract is signed spelling out exactly what is to be done when and what payment is due when), I start the work. The aforementioned contract will have at least one milestone, at which time I will stop work, present a draft of the project to the client for review and feedback by a certain time, and provide an invoice for an additional 25%. Work does not go forward from that point until that 25% payment is safely in my bank. By doing things in this way, if someone DID try to stiff me, I'm only out for that final 25%, and have been paid for at least part of the project.

Maybe you could consider something similar, at least for your custom work.

For this type of business, I don't agree with the suggestion to require full payment up front. From a customer's viewpoint, I want to be able to hold back payment if I am not satisfied with the finished product and would be uncomfortable with such a policy, no matter how good and well-recommended the cleaner/repairer might be. This is true for custom-designed anything, as well, be it furniture, clothing (human or animal), artwork, etc. It's just not standard business practice to pay upfront; there is usually a substantial deposit, then "milestone" payments that give the customer a chance to fine-tune the finished product to their precise liking along the way.

If your cleaning/repair policies already state that you sell unclaimed items after 30 days (or whatever), sell them. When you stop acting like a doormat, interestingly enough, people stop trying to wipe their feet on you. :winkgrin:

[Eleanor]

From here on out, don't even start custom work untill you have payment in hand. that way you are not out your time as well.

As for the bill outstanding, let them know you will be sending it to a collection agency if you don't have payment in full by 2 weeks, and then send it if you don't get your money.

[nadasy]

Hi ColoredHorse,
I do have for my custom work TOS and do require full payment. This is something I have always done. A design is agreed upon, materials (this is jewelry related), and payment. I haven't had this issue before with any of my work in this regard.

This was someone known to me and we had purchased from each other before with no problems. This was something I was not expecting but you are right.

I need to NOT be a doormat. :lol:

I will agree. With some people, it's much easier to hold their feet to the fire in cases like this if they live close enough for you to do so.

[JohnDeere]

There are people (my horse came from 2 of them) who believe it is their job to stiff people in new & creative ways. Sometimes the person I know would pay fine. Other times there was a fake check/MO. Other times they sold stolen pharmaseuticals. Sometimes they wouldnt send anything.

Sucks. Imrpove your business practices & move on. Sorry!

[monalisa]

You are certainly not alone. Chalk it up to a lesson learned and don't let it grate on you - easier said than done, I realize.

Have a friend who is an artist. She did a portrait for someone who is well-endowed with $$ and fairly well known. He stiffed her for the painting and this has been years ago. Why she did not request payment before - not sure. But even "rich" people stiff those of us who work for a living. It really makes me mad too - some of us really are honest and pay for work. I don't know how these people sleep at night.

[dalpal]

I think Bill Cosby said it well..."People are your friends until THEY owe YOU money"..then you become the scum of the earth.

When I make business transactions with people that I consider friends, I am extra careful to make sure that everything goes smoothly. Treat everyone the same in business...you just have to, or people will take advantage.

[macmtn]

Been there-done that-have the Tshirt. Had a woman drop off 4 VERY expensive blankets to be washed, repaired and waterproofed. This was in May. Called her June when they were done. Yes she would be down. No specific date. Called her again in August...and in Oct. In November I called and got her husband...who had been wondering where the HELL their blankets were!:eek: He stated HE would come pick them up that week. No.. One.. showed... up, and they got tucked into the deep recesses of my shop. I planned on selling them if they didn't come get them...but forgot about them. In JULY of the following year I got a call from her -she was coming to pick them up.:confused: I promptly added storage charges for EACH month they were taking up space in my shop, and when she got there threw a big loud nasty spoiled child hissy fit about the storage charges. I quietly asked her if she had a job? yes. Do you have your hand out for your paycheck at the end of the work week? yes. How would you feel if your boss just didn't pay you for over a year for your labor?really pissed--I worked hard for my money. Ya-me too. And if you left them at the dry cleaners they wold have been gone after a month.
She left stating she would never use my blanket services again.
Great! don't let the door hit your ass on the way out...

Moral of the story is.. you don't need these customers..sell the stuff and refuse her business again. And I finally understood how to make yourself feel better about those who take advantage of your good nature...charge them double.:lol::lol::lol:

[HighFlyinBey++]

Why not add a clause that states all items not claimed within 60 days of notification will be resold? No excuses, no exceptions.

[equineartworks]

I finally got tired of being a one woman collection agency. Payment in full is due up front before any work commences....period.

[nadasy]

I actually talked to the person yesterday and payment must be here by Monday. It was agreed that it was time to go forward on this. It's never a good thing when friends are involved and live several states away. Lesson learned.

Thank you all for your responses. I do appreciate your opinions.

I've been in business for 26-27 years now, and this is the FIRST time something like this has happened, so I have learned. My policy has always been full payment up front unless it's a big barn where I personally can go easily and collect. :lol: As far as the custom work, I've had that for 12 years now, and this is a first and I think the reason is that we are states apart. If I were camping on their doorstep, this would have been resolved long ago.

I have some great things to consider here, thank you all for being such a great help. This is a good thing. Sometimes talking to myself just doesn't cut it. :winkgrin:
Dinah