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Customer collections
#2
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 ..... Big Grin 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:
 
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Messages In This Thread
Customer collections - by nmartin - 12-22-2003, 08:43 PM
Livemint News Today - by Williamduema - 03-10-2024, 06:18 PM
[No subject] - by John Jacobs - 12-23-2003, 08:23 AM
getting paid - by Cardiofurb - 12-23-2003, 12:48 PM
Spring Offers - by Robertlig - 04-22-2024, 07:09 AM

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