What do you do when you have a customer that you send an invoice to and they don't pay you? What is the best route for a small business to take in these cases?
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What do you do about Non-Payment?
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It only happened to me once just recently and the same thing happened. They sent the images via e-mail and after dealing with customers that have been so honest in the past, it caught me totally off guard. I had no trouble contacting her via phone or e-mail while the work was in progress but suddenly she's vanished when the job was done. Luckily it was a small amount but I've learned that when you don't have the original you need to secure the cash first. It's a shame because I like to deal with people honestly and respectfully and now I've become tainted. But for 2 years of business and only one bad apple, I would say I'm pretty lucky.
DJ
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Re: What do you do about Non-Payment?
Originally posted by chiquitita
What do you do when you have a customer that you send an invoice to and they don't pay you? What is the best route for a small business to take in these cases?
If all else fails, your alternatives are to take the customer to Small Claims Court or to declare the amount owed as a bad debt on your income tax form. Keep accurate records of all phone calls, letters and other follow-up made to collect what is owed since you will need this information in either case.
I'm sorry this happened to you and hope you are successful in getting paid.
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I've had a problem with a non payer. It wasn't a photo restoration but 500 double sided prints of a brochure I did for a small business. Unfortunately the business owner was a friend and I trusted her to pay after the end of the job because I had done more than 1000 brochurse for her befer and had no problem with payment. I wasn't here when she picked the job up and my son knowing she was a friend gave her the brochures. Although I have sent her an invoice and then a statement at the end of the month still no payment. I'm quite annoyed about it and there will be no other work done for her even if she does eventually pay. This as ruined both a business transsaction and a friendship. So in future I will insist on a deposit before taking jobs.
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There is one way I know of that should work very well for files that are sent to you, and even when doing jobs for friends. Vuescan ($40.00) is a scanner software, available at www.hamrick.com . If you have the software, you have an option to include a crosshatch (I think) pattern across the image when scanning. The finished restoration could be scanned with the pattern, and a finished file (or print) could be given to the customer, with the pattern showing, which would make it useless for almost everybody. But the quality of the finished product is still easily seen. The file (or print) without the pattern could be sent when payment is received. This could become your policy, and should not strain friendships, which happens more often than you might think. I don't use the option because I don't have a business.
Ed
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I tried the payment before work route without much success. Sometimes I can get a 50% "deposit" before starting a large job.
What I do is post a LOW quality watermarked copt of there image on my website for there approval, as soon as it is approved and payment is received, they get the final copy. This seems to work best as the customer can see what there getting before they pay for it. They can ever request changes if they would like.
This also works if they send you a digital file to work on, post it in low res high compression and small (large enough to get a good idea of your work) with the watermark so "IF" they tried to print it, it would have your company name or logo on it.
Hope you get paid eventually. If not, chaulk it up to experience. It happens to all of us one time or another.
Paul
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oooh, been there!
well, as far as getting paid for wasted time, my solution is to have the customer pay at least half, or whatever absolute minimum you both agree that the work would cost. Easy. Just don't do the work until you have the juice to squeeze.
Right now i'm sitting on a 2.5-year-old task worth $40 commissioned by a Lockheed Martin engineer. LESSON: Affluence should not affect your willingness to start a task without down payment.
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Yep, I always go the 50% deposit route. I post a proof to my website (marked PROOF) in bold letters, and don't deliver the actual goods til payment is recieved in full. I also accept credit cards online through paypal, which makes it easier for folks to pay.
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Originally posted by bigkidjrp.s. Sandra -- have you tried having a heart-to-heart conversation with your friend? Maybe this is just a simple misunderstanding that can be cleared up with some open communication...
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