Business Beware is the voice for all small business owners where they can forewarn each other about unruly customers and collect money they're owed. Save your business time, money and headaches when dealing with customers who have become a problem.
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Prequalify your customers:
Don't be afraid to "prequalify" your customers. By "prequalify", this means you can first ask the customer detailed questions about the job, to make sure you offer the services and/or products that the customer is asking for. Once you have established that you can provide the service, find out the details of what the customer expects from you. Listen to everything they say, and pick up on any negatives that might stand out. Example: If the customer has had negative experiences in the past with another contractor, listen to their complaints and you will be able to tell if they are hard to please, or if they really had a bad experience. You can see how particular they are going to be, and if they are going to be reasonable to work with. Another example would be if they are trying to get something for nothing, and wanting you to do a job for an unrealistic price. There are many customers out there that will take advantage of a business. You want to make sure that the customer is a good fit for you and your business. If you decide that a customer is going to be difficult to deal with, you can simply decline to give an estimate, or price the job very high to make it worth your time.
Have a Signed Estimate Before the Job is Started:
When starting a business relationship with a customer or client, you want to make sure you understand exactly what the customer is asking for. If you are in the business of giving an estimate for a job before you do the work, then you want to make sure you give a "written estimate", so that everything is in writing. The customer needs to sign the estimate or proposal showing that they agree to the work and the price that you have listed on the proposal. This will cause less confusion if any problems arise after the work is completed. A customer may start asking you to do additional work that was not included in the original proposal, if so, make sure you type up a "change order", so that the additional work and charges are listed. If you do not give them a "change order" and there is nothing in writing, they might try to get out of paying the additional charges, because they have a signed proposal that has the original price. Too many times verbal quotes are given, and then there could be a disagreement on what work was to be done or the cost of the work after the job is completed. Avoid this confusion by taking the time to provide a written estimate. It is also a great idea to get 40-50% down on a job that requires materials to be purchased. You will have the money to pay for the materials, and then you can collect the balance for your labor and time when the job is completed. If you have a problem collecting from a customer after the job is completed, and you did not collect a down payment, you will be hurting even more because your vendors will be wanting you to pay for the materials that you purchased from them. Cover your expenses! Do not be scared to ask for 40-50% down before starting a job.
How To Collect From a Non-Paying Customer:
Do you have any customers that have ignored your request for payment? Have they also ignored a "late notice"? You might not want to post this customer on our website until you have let us send them a letter stating that they "Will" be posted on the webside "IF" they do not pay. An official letter from Business Beware™ might be the nudge that your customer needs to send in their payment. They may not want to risk being listed on a website such as ours. This letter could almost serve as a "collection letter", except we would not be keeping any % of your money! Customers use the Better Business Bureau as leverage to get what they want if they are not happy, so why not use Business Beware™ as your leverage.
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