----- Original Message -----
From: "John" <[EMAIL PROTECTED]>
To: "DUG Offtopic" <[email protected]>
Sent: Tuesday, December 06, 2005 4:23 PM
Subject: [DUG-Offtopic] Not getting paid


> Hi all
>
> Has anybody been in the same situation as me, dealing with a client that
> doesn't want to pay? Can anybody give me any pointers what to do in a
> situation like this and what not to do?

I can think of 3 types of scenario where customers don't pay:

1. The customer's a crook and just refuses to pay. You're probably out of
luck, unless the amount is enough that it's worth taking them to court, AND
you've got good documentation, AND they're local. (If it's a deal made over
the net, you probably can't even find the customer, let alone get the
money).

2. The customer doesn't have the money. Just keep pestering, and eventually
you'll probably get all or most of it, in dribs and drabs, unless they're
going out the back door totally.

3. They're not happy. Resistance to paying you might be the first indication
you'll get that there's a problem. Find out what the real problem is and
negotiate a solution with them.

A stratagem that can be surprisingly effective is to simply ring the
customer up, ask if there are any problems, ask if there's a reason why
they're not paying your account, and assuming they don't raise any actual
concerns, say "I'd like to pop round tomorrow and pick up a cheque." That
puts them on the spot. The cheque will often be in the mail the next
morning. Or the person who's been dodging you suddenly becomes available and
tells you what the real problem is. Often it's cash flow - suggest they pay
half now and half next week, or something like that. If they say they can't
pay today but can next week, try and get a post-dated cheque rather than a
promise. And keep pestering them - politely, of course. You'll be just one
in a long queue pestering them, but eventually you'll probably get paid. You
always have the threat of a small-claims case or a winding-up order, and
they will know this, you won't have to mention it. Be firm but flexible.

If they've got the money, but they're not really happy with what you've
provided, your firm request for payment will probably spur them to
crystallise their thoughts and tell you what is wrong. If it's bespoke
software, they probably didn't state their requirements clearly, they agreed
your spec without understanding it, and the end result doesn't quite meet
their need. You'll probably end up doing some extra work for them, or
accepting a partial payment, even if you've done exactly what they asked
for. This probably costs you less than the fees lawyers and collection
agencies would charge, and more importantly preserves the relationship with
the customer, especially if they perceive you as going to extra trouble to
make them happy even when you're not strictly required to.


Good luck collecting the money,
Brian

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