Getting paid
Doozer
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
Thanks,
Rich
Sign In or Register to comment.
Comments
Balance on delivery.
Or Rich, you can avail yourself of our 10% discount by paying in full up-front.
Rgds,
Ric
The discount is a positive way of encouraging payment.
Rich
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.
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.)