Chasing down deadbeats

Looking for some advice here, as our local "civil servants" haven't been much help. We own a custom picture framing shop. Due to the "custom" nature of our business, S.O.P. goes something like this: Upon placing the order, customer pays half down. Upon picking up order, customer pays other half. Right now, I'm trying to chase down customers who either:

1. "Didn't have their wallet with them..." yada yada, and picked up their merchandise without paying the balance. Fortunately, I've only got one of these, but he's a shady berkeleyer, and his phone was recently disconnected. I've sent 2 invoices, certified return receipt, and left 2 voicemails. Next stop is a friendly visit.

2. Folks who simply haven't picked their stuff up. Same kind of thing. Left v/m's, sent letters, etc. We've got half "da moneys," but half does little more than pay cost for materials/labor.

3. Folks who picked stuff up, paid with check, check bounced. Both of these ones are "off the grid" (out of town, phones disconnected, business closed, letters have been returned.)

4. Same as #3, but the deposit check bounced, and the order was completed before we realized it.

Any help? We're in GA. So far, all I've gotten is the runaround..."Oh, you need to talk to so and so," and so and so tells me I need to talk to another so and so. If the answer is "hire an attorney," I guess I'm out of luck.

Perhaps you could sell these invoices to a collection agenecy. It would be a slim return on what you are owed, but at least you get to annoy them and get some of the money back.

I would also start ebaying/craigslisting the un-picked up merchadise after a reasonable period. I have no idea what that is, but you have been doing this a number of years and I reckon you do. Again, not a lot of money, but some.

You ain't Dog the Bounty Hunter, but you ain't Andy Dick either, I would seriously advise against personal visits. That gets into harrasment in a hurry and even the perception of such could land you in a little hot water.

On the uncollectable stuff, you should still have some personal information. Go to the library, pull all the subscription cards and free music offers, DVD collections and civil war chess set collectables, hair in a can, Guinsu knives, cards you can find, check "bill me" and drop them in the mail.

Depending on the amounts involved you could take them to small claims court without an attorney. For the ones you can't find, try an online search. If they move, they have to change the address on the drivers license, but there is no guarantee that they will, especially if they are dodging creditors.

I don't know much about Georgia state law.

Most of this sounds like 'cost of doing business' - hopefully it is a very small percentage of your overall business.

1 is gone, write it off

2 sell the frames at deep discount - you already received 50% of retail, shoot for a total of 75%

3 and 4 - bad checks are against the law so go throught the motions so that you will have documentation when you (see 1) - write it off.

Show it on your books however you wish, and move on.

Think about maybe? ...... 'no personal checks accepted'

I suggest collections.

ooh, and the subscription card thing.

Cash up front after an estimate is given?

I'm more of the half-n-half kinda guy too, but full price up front with 14 days to pick up after call/e-mail verification of completion might help you out....due to "some customers not paying and or picking up their orders".

Your cost and labor is covered by the 50% deposit. Just chuck 'em in the back room and don't waste your time chasing these people. Or put the pictures up on a wall with a price tag on them.

How much time (aka money) will you spend hunting these deadbeats down? Will it be worth it?

Miata & shotgun. It'll so be worth it

Call Luca.

Finance a trip for every board member over 225lbs to come down and make house calls out of the back of Hardys E-Train. We can go all "Taken" on the bad guys asses with some big assed spikes and videotape it. Then any time you have any "Order work" there will be a brief yet poignant video extolling the virtues of cash up front.

Since you get 1/2 down, at least you haven't been completely clobbered. I'd post a sign saying (nicely) orders not picked up within, say, 30 days are subject to resale without a deposit refund. Then throw those puppies on the wall with a '50% off!' sign, there's your other 50%. I realize you have only had one of these, but NO WAY would I ever let a customer leave with merchandise without some form of payment. You might as well just give it to them and say 'see ya'.

On checks: we use one of those check guarantee services. IIRC it's something like 10% of the face value of the check, but it's worth it when the amount is up there. They pay you for the bad check and then they chase 'em down.

Active duty military, there's a sneaky way to do it: if you get a bad check etc from a member of the military, call them and give them a chance to pay up. BUT! Tell them if they DON'T pay by that date you will call their commanding officer. Then do it if they don't come through. Something like that becomes part of their permanent military record if the CO so chooses.

I am very happy with my billing method- 100% on receipt of order. No collections, no late pay. I might lose a little business, but not having collection aggravation is worth it. Fortunatly, in the export business this is SOP, so very few complain.

A friend of mine in England ran an automotive shop, and had a rather shady guy that collected all of his debts. He said that the guy never failed, and he didn't ask any questions...until one day. He asked about his methods, and knew that he probably shouldn't, but did anyway. So the guy told him "The first thing I do is I go to the persons house, knock on the door, and when they answer I punch them in the face without saying a word. That way they know I mean business."

Don't do the subscription card thing. Margie would probably know more about the exact cost to us and she would know more about collecting from deadbeats too.

I do know that for every bill me that isn't paid the person gets two issues which after printing and postage likely runs us about $10-$15 dollars. Then the person either calls us or lets the invoices sit. If they call they can request the card that was sent in which means we have to go sort through thats months subscription cards (several hundred), find their name and mail it back to them. It really is a pain in the ass.

Mental wrote: Go to the library, pull all the subscription cards and free music offers, DVD collections and civil war chess set collectables, hair in a can, Guinsu knives, cards you can find, check "bill me" and drop them in the mail.

I was a hairs breath from doing this to my ex-wife.

I'd go with the prepay 100% in the future. If they want it, they need to pay for it. They're also more likely to come back and pick it up when it's finished.

Look at it this way: If you order something from a catalog do you pay half when you order and the other half when it arrives? No, you prepay 100%. Where's the problem with that?

I work at a Mom and Pop electronics shop is what is essentially a three college town. With such a large transient population, we do not accept any personal checks (exceptions given for really good local customers).

1: No ticky, no washy. Customer can come back when he has the funds on him.

2: At least you broke even. Now get whatever you can for the merchandise.

3 & 4: No personal checks. Anyone with a checking account should have a debit card or at least an ATM card (and ATM's are everywhere). If they don't, see #1.

Just remember: Cash (or it's plastic equivalent) rules everything around me.

Dolla Dolla Bill Y'all

Dan

Even if you take them to court and win your case, it is still your responsibility to collect the judgment against them. So unless your talking about some big $$$ just write it off and adjust your policies to what ever you are most comfortable dealing with.

poopshovel wrote: 2. Folks who simply haven't picked their stuff up. Same kind of thing. Left v/m's, sent letters, etc. We've got half "da moneys," but half does little more than pay cost for materials/labor. 4. Same as #3, but the deposit check bounced, and the order was completed before we realized it.

Personally knowing the quality of your work (excellent), please post said items here and I'm sure someone (quite possibly me!) will happily purchase them. Voila...you're made whole and we have access to nicely framed items at steep discounts!

Plus if they are pixxors of hawt chix we could hang them in our cubicles and say they are our "mistresses"

I agree on not accepting personal checks anymore. Almost every large company doesnt (or they use an electronic approval seirvice that rejects and "high risk" checks), and the average person is no longer honest enough for it to be a reasonable form of payment.

dyintorace wrote:

poopshovel wrote: 2. Folks who simply haven't picked their stuff up. Same kind of thing. Left v/m's, sent letters, etc. We've got half "da moneys," but half does little more than pay cost for materials/labor. 4. Same as #3, but the deposit check bounced, and the order was completed before we realized it.

Personally knowing the quality of your work (excellent), please post said items here and I'm sure someone (quite possibly me!) will happily purchase them. Voila...you're made whole and we have access to nicely framed items at steep discounts!

You want grandma's favorite picture of her 6 year old grand-daughter!? YOU SICK BASTARD!!!

Yeah, there are a few that a may be able to make a couple bucks on, but I wasn't sure about the legality of selling someone else's stuff. Seems like that could get me in a lot of trouble. That being said, I suppose I definitely need to post something regarding policy on unclaimed items.

As far as the "cash only" thing goes, no way, no how. Trust me, I'd really love to be a cash-only business, but my GOOD customers (i.e. the ones who don't ask "Now how much is all this gonna cost me?") don't carry around huge wads of cash, and like their sky-miles. I might consider a no checks policy though. But you'd be surprised how many older folks still pay with checks (no debit card.)

Thanks for the advice, guys.

Bumboclot wrote: I Just remember: Cash (or it's plastic equivalent) rules everything around me. Dolla Dolla Bill Y'all

Word

My parents were in the same business when I was growing up, and I remember them having the same problems back then.

Depending on cost vs. what they owe, small-claims court may be an option. I remember my mother winning more than one case w/o a lawyer. If all your documentation is in order, and it's an obvious situation, you may not need to hire a lawyer. Alternately, maybe a lawyer could cut you a deal since you have multiple cases? Maybe you could schedule them all for one court date & save time/trouble that way?

And if the artwork they stuck you with isn't too personal, unique, etc. Put it out on your wall with a price tag on it(reflecting the remaining balance + your trouble), and see if anyone buys it at a discount(compared to what the original person would have spent). For artwork that was standard-size, we'd often just pull their artwork out if we couldn't sell it, and reuse the frame/matting/glass for something else.

Yes, we need some new business rules here, as has been discussed. 100% upfront, cash, check or plastic, is pretty reasonable for a custom service, I think. Of course, no money no picture frame. "Forgot my wallet." OK, you can have your picture when you "find" your wallet. Sorry, it's company policy, I don't make the rules. A check service sounds like what you need, but remember they charge for it. I forget how much, 3%? 5%? Factor that into your pricing. Prominant sign or statement on their initial receipt that says "Items left over 30 days will be sold..."

My friend who owned a HD dealership, which he built up from an aftermarket repair shop in a rented room behind a store front said "When they hand you the book of life, right there on the first page it says 'People Suck.'"