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+--- Thread: Customer collections (/Thread-Customer-collections)
Customer collections - nmartin - 12-22-2003
So, you've explained to the consumer-type cust. what repairs you believe are needed, what it'll cost (usually worst case scenario) and why the parts need to changed
Now you've done the work and now he chooses to argue the bill....
What tips can anyone share to avoid this kind of c**p from happening?
Do you pre-auth. the credit card, have them pay when you walk in the door, what ??
- John Jacobs - 12-23-2003
I found early on when I started this venture, that I had alot of disputes as your having now. They problems were normally over the Service Call and/or Labor rate, rarely about the parts. The way I reduced this problem was to inform ALL potential customers:
1) What our Service Call Charge is AND that we charge a Service Call EACH time we have to come out, EVEN if they "told us what the problem was". I simply tell them it is impossible to carry every part on our trucks. Many times this results in a dispuse before we even walk in the door, and we never get the call .....
BETTER NOW THAN WHEN THE WORK IS DONE. Often the customer will not want the service, I hate to loose the business, BUT again better to loose it than to do the job and not get paid!!!!2) We always charge manfacturer's suggested retail price for parts and add the shipping as a seperate line. That way the customer can call the manufacturer if they like and verify the retail price AND I/you can simply say (and be honest about it) I don't set the prices, I'm just passing on the cost.
3) I had a Service Order form printed that includes space for service requested, conditions found and work preformed AND a section for itemizing the bill - Service Call, Labor, Parts, Tax, Shipping & Handling. If we have to return then the customer is notified of the parts price in writing and also we note on the Service order AGAIN that we will charge a second service call and labor to install the part(s). Again we loose a few repeat calls to this but once again better now than not be paid.
4) I have had to and will have to again I'm sure, take customer's to small claims court to collect. I ALWAYS DO IT, it requires a lot of time and detailed documentation. I am very principled and I WON'T CHEAT ANYONE AND I WON'T BE CHEATED. Its more of a personal thing than a business thing. :? But I think being principled is why customers like doing business with us. I really don't have to do the small claims court thing very often anymore.
WOW I wrote a book, guess you hit a hot button with this question. :wink:
getting paid - Cardiofurb - 12-23-2003
Getting paid ? What are the guide lines ? Should service providers have every know part to fix every known problem on his/her truck every single time ? No I think not. Remember that an ounce or prevention is worth a pound of cure. Expierence is your best friend here, some customers smell like trouble when you talk to them on the phone or show up and the door. Some customers are just plain deceptive. I believe in the cover my butt rule. First things first. We as service providers are not the people using or breaking the units to be fixed, this needs to be clearly understood from the get go. We are not the problem we are the solution. When talking to potiental customeres on the phone I make it VERY clear that it cost a specific amount just to show up at their door............
No one anywhere can solve every problem before they even see the unit or get to the location. We can not rely on the customers diagnosis of the situation either, so I tell the customer that I stock the normal wear items and that some will have to come from another source and they can either have me purchase the unit (with a markup known in advance) or they can purchase the part them selves and call me when the part shows up. To finish and agree with John, get the invoice signed so that you have your paper trail, once the invoice is signed the customer is responsible for the payment........... Good luck and remember NOBODY wins every single time.Brett
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