Customers Who Pay Slow

Losing an account can sometimes be a result of your own doing. If you find that the time it takes to get paid is too long and getting even longer all the time, you may need to reconsider that company's business. Is the cost of collection efforts worth the profit you are making? Obviously, you will make all the efforts you can to resolve the situation but sometimes you just can't seem to do it. It is hard to break someone else's habit once they have been doing it for a while.

If the longer payment time leaves you in a no or little profit situation or a break even position, it's really not worth it. You have your own bills and employees to pay and the money you have earned needs to be there on time. Cutting off or firing a regular customer or client will almost bring tears to your eyes but sometimes it has to be done. You can't put your entire business in jeopardy because of one or two deliquent customers, regardless of how big the account is. Your first responsibilty is to your company and your employees so take action. If the customer wants to change and pay on time you can decide if it's worth the effort. You can put them on payment in advance or 50% deposit for future orders.

Barry is a marketing and customer experience speaker & trainer. www.idealetter.com