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Getting paid

DoozerDoozer subscriber Posts: 3
I do most of my reupholtery work locally, but a growing segment of my business is from my website. When I bill my local customers, I take a 1/3 deposit to start, then collect the remainder when I visit their location to install the upholstered items on their chairs. When I deal with a customer who is across the country however,(and who I will never meet) I feel it`s necessary to do things a bit different. I would like to take a credit card for the full amount, but I understand that most people would want to take delivery of my shipment before paying the full amount. This could leave me open to a customer who pays the 1/3 deposit and then never " gets around" to paying the remainder forcing me to go to a collection agency or something of that sort. Does anyone know a method that would be fair all around that doesn`t leave me in a risky place?
Thanks,
Rich

Comments

  • RicWillmotRicWillmot subscriber Posts: 14
    50% deposit to commence work.
    Balance on delivery.
    Or Rich, you can avail yourself of our 10% discount by paying in full up-front.
    Rgds,
    Ric
  • DoozerDoozer subscriber Posts: 3
    Thanks Ric,
    The discount is a positive way of encouraging payment.
    Rich
  • RicWillmotRicWillmot subscriber Posts: 14

    How much are you paying in overdraft interest, follow-up costs, book-keeping costs, and debt collections?
    How much can you make by having the money in the bank now?
    If 10% for pre-payment in full of your fees or price is too high, then you are not charging enough.
  • LiveWiseLiveWise subscriber Posts: 5
    I agree with Ric.  It is better to collect and have the money than to try and get it later.
     
    Here`s another idea.  A friend of mine has an item that sells for about $1500.  She does half down one month and paid in full the next month when the item is sent.  There are times that she will break it down into 3 months, but it has to be paid before she will send it.  She guarantees the product 100%, but if it is returned, she charges a 25% restocking fee as now it becomes a "used" product.  Just an idea.  (This way does require more bookkeeping and follow-up, but she does get full-price.)
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