| Question |
|
Answer |
| |
|
|
You’re genuinely worried about not getting paid for a job and thinking of asking for money up front. |
|
Don’t ask for money up front. Terribly old fashioned I know but not cricket. If you’re really that worried then pass on the job. Your gut instinct may be correct. If they are out to rip you off assume they’re experts and pull out. There’s plenty of other work.
|
|
|
|
Prestige jobs |
|
I’ve seen too many good people fall on one roll of the dice. Life and business is a gamble. Don’t bet more than you can afford to lose. If you’re wondering why they chose you, it may be because no one else will do the job and they’re looking for a mug. Listen to what I’m saying.
|
|
|
|
|
|
Advice usually and wisely offered to consumers by Trading Standards but it applies equally to you. If it sounds too good to be true then it almost certainly is.
|
|
|
|
You really want the job but don’t want to risk lashing out money on a boiler and other materials that you might not recover. Unsure about the customer. |
|
Set everything up at the merchant and get the customer to buy the stuff you need. Agree payment terms for the rest and be firm. If the customer will not buy the stuff then pull out. Otherwise, do a good job and you can get to know each other better.
|
|
|
|
Substantial money off for cash
|
|
Tell them you prefer a cheque as you’re thinking of selling up and want to inflate your turnover figures as much as possible.
|
|
|
|
| Unregistered Installers |
|
We now have strong evidence that some consumers are deliberately targeting unregistered installers then demanding substantial reductions when a ‘gas certificate’ cannot be produced – Get registered. |
| |
|
|
Boiler servicing, cold callers. |
|
Work on the assumption that no one suddenly just wants their boiler servicing. If someone you’ve never heard of before asks you to service an appliance, on arrival check that it is working normally before you touch it. Classic customer con trick. |
| |
|
|
| Your money up front |
|
We don’t advise you to pay up front either. Alleged work opportunities which demand your hard earned up front are fraught with danger and history is littered with examples. We’ve invite a number in, rejected them and then waited for their promised national advertising campaign, balloons and bunting, none of which ever appears - Bin it. |
| |
|
|
| Landlords Gas Safety Checks |
|
If someone wants a ‘quick one-off’ then insist they meet you, quote terms and also insist on payment as you arrive at job address. One off LGSC are not worth the hassle. Limit the hassle. Strictly pay-as-you-go in this arena. |
| |
|
|
They’ve done everything, all you’ve got to do is connect the gas. |
|
Hang up gently as recommended by BT. |
| |
|
|
Extras |
|
If you do a bigger job and there are extras, always invoice the principal amount first and invoice separately for extras. Any (alleged) dispute over extras cannot then be used as an excuse for sitting on your money (a classic ploy). I have a style sheet for variations and will soon produce a comment on the hard-core expert defaulters, principally on refurbishment work. |
| |
|
|
Statistically the worst commercial defaulters |
|
Other small businesses, especially in catering. We had a new fish and chip shop owner who wanted a small job doing but confessed he could not pay for two weeks. We believed him did it and got paid. Gut feeling. |
| |
|
|
Statistically the worst domestic defaulters |
|
Young professionals who believe the world owes them a living. They’ve got a good degree and think they’re clever. But watch them squirm when you serve a notice. |
| |
|
|
| Statistically the worst slow payers |
|
Major companies and Corporations. Add a clause that your terms are 30 days and interest is then chargeable under the terms of the Late Payment of Commercial Debts (Interest) Act 1998. It actually works. You will be labelled ‘arrogant’ and probably not hear from them again but it does work. |
| |
|
|
Freebies |
|
They’re as bad as non-payment. Employees of big customers always asking for favours. Invoice each job but send the invoice to your freebies ledger. Add a couple of hours here and there to jobs but use a code system in one corner. 2FL = 2 hours off the freebies ledger. Credit the ledger so you have an audit trail. If anyone queries produce the ledger and they’ll soon shut up. Done that for years. |
| |
|
|
In Association with .. |
|
Not advertised for years but when in yellow pages we were plagued by telesales parasites. Some claim to be working ‘In Association’, usually with charities. Invariably porkies. Elicit precise details and then ask the charity. |
| |
|
|
Small Claims |
|
The large majority of people who receive a summons pay up immediately. Add a small (say £30) admin fee to claim. If it goes to court you will not get that fee but as I say most pay up immediately to avoid court. If they do not pay up immediately but do not contest the claim, you will win by default. |
| |
|
|
Make sure you know who you’re working for. |
|
Might sound obvious but if you’ve done a job for ‘The Cool Folk Nightclub’ and you’ve not been paid you can’t serve notice unless you can address the company. It may be owned by Acme Holdings Ltd trading as The Cool Folk Nightclub. Ask for a compliments slip with their post code on, Say you’ve forgotten your pen. That invariably contains registered office details.
|
| |
|
|
Companies House |
|
Easy to make a quick online basic check to see if there is anything obviously wrong. Not fool proof by any means but why ignore the option. |
| |
|
|
Sod’s law. Every now and again .. |
|
Funnily enough it happened to me again this year. Three commercial customers, one after the other, sat on money for no obvious reason. The first I stopped working for and soon got paid. I now do a wee job and invoice. Do the next job when I get paid for the first etc. Second one I served notice on. My notice arrived the day the cheque arrived. He now has the message and payment is always offered up front (I never accept). The third I served notice on and he paid. |
| |
|
|
Pat Woodstock |
|
She’s our credit controller and accounts clerk. 27 years old single parent with 2 kids. Never has time off and never takes holidays. The wee lass only exists on paper and ‘sends’ our letters out. If someone phones asking to speak to her, you of course are a model employer and simply say she’s off on maternity leave but kindly working from home. You will of course promise faithfully to pass the message on. It really works. |
| |
|
|
Stick-it notes |
|
Those ubiquitous self adhesive bits of yellow paper. Wrote to a well overdue estate agent once (well Pat did) and got a silly phone call. Wrote to Pat on a stick-it note saying ‘classic delaying tactic - send another invoice’. The stick-it note ‘accidentally’ attached itself to the back of the new invoice. Got a cheque quick enough though. |
| |
|
|
Computers |
|
Blame the computer. Advised a large building firm years ago to send what appeared to be computer generated letters for overdue accounts. The principal could not bring himself to send such letters. He tried it and was delighted. If a customer phoned him he would simply say he would not have allowed such a letter to go out (of course) but the point is made. |
| |
|
|
Banks |
|
Split your accounts up and keep your mortgage separate. I’ve known good people lose their home when there was no need. I know one guy who’s daughter works for a bank and he has had some good mortgage snatch-backs for buttons. |
| |
|
|
Never |
|
No matter how tempted never telephone. You can spend hours and a lot of money. All you get is stress. If you ‘know’ they’re not going to pay then serve notice but be ready to follow up immediately. 99% of people bluff. Once 99% of people get as far as a summons they pay up. Most pay up before it gets that far. |
| |
|
|
Always |
|
If you have to serve notice (under the County Court Acts) address it personally to the Company Secretary or Chief Executive Officer. Results guaranteed. |
| |
|
|
Agreements (recommended) |
|
Nothing wrong with a well presented quotation, which includes specified payment terms as well. Had a job this year with specified stage payments. The second payment did not arrive Friday noon as agreed. Took everything off the job and walked. Should have worked all weekend. Only £2000 but the money was presented to us on the Monday before work resumed. |
| |
|
|
Nice touches |
|
On bigger jobs provide a few nice but simple touches as extras not expected by the customer. Offers the feel of value for money and is helpful to a lasting relationship. It was Marks and Spencer who once proved it cost five times as much to obtain new customers as it does to retain existing customers. Look after the good customers. |
| |
|
|
That will do for now. The next comment will be some classic examples of what we mean. Real stuff drawn from the archives. Principally but not exclusively recovery work for reputable Associates.
|
