bob – the builder (part 4)

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bob – the builder (part 4)

this is part 4 of a live Case Study. click on the picture for the full story bob – the builder is a real, live Case Study. I am recording what does or doesn’t happen so that you can see the thought processes behind an effective collection strategy and how the three principlesof effective account collections are applied in real life.

To see all of bob – the builder as it unfolds/unfolded click here.

 

 

 

Part 4

05 February – email from Bob.
Hi Michael, Sorry for the delay in answering your email, was out all day yesterday. Dave’s deposit is in our bank account, all okay for the next step.

06 February email sent to Dave (the debtor)
Dear Mr Developer,
Thank you for your email and for the payment sent last week. Although the exact monthly figure cannot be guaranteed, the company still requires regular monthly reductions to be made with any remaining balance to be paid in full by the end of this financial year, if not sooner.
As interest continues to accrue on the remainder, we will send you an updated figure before 27 February, the next installment date, so that you may update your records. Thank you once again.
Regards,
Michael Todd.

———————————————————

Note the Points made in the email:
1: his point about spasmodic balances is acknowledged,
2: he is advised that we still want “something” monthly,
3: he is also told that we still want it paid in full by the “deadline”,
4: he is still being charged interest.

Even if Bob decides NOT to charge interest, Dave doesn’t know that, that gives Bob some room to negotiate with Dave later if he needs to.

Point 4 also gives me an excuse to contact Dave again before the next due date which will act as a reminder to him (then), as it let’s him know (now) that we’re not going away!


So, dear Reader, until next time.

go to bob – the builder (part 5)

 

By | 2017-09-20T13:11:14+00:00 February 6th, 2009|case studies|0 Comments

About the Author:

Have you ever wondered why a client does business with you and then ignores your invoice like they had no intention of paying it in the first place or they treat you like their own personal line of credit, leaving YOU dangling, waiting months for their payment? Unfortunately this situation is all too common and can even be puzzling for the most experienced business owner. If you’ve ever had to handle outstanding accounts or you are just so over non-payers, then we can help. Real-world skills, solutions, tips & strategies to get more accounts paid on time, and, most importantly, how to maintain customer goodwill while keeping YOUR cash flow in the positive. You will find the blog posts helpful but to get real results, contact us by using any of the forms on this site, by email or by phone. I’ve been involved in the management of accounts for over 30 years, heard every excuse in the book, can spot a non-payer at 20 paces. Finance Companies in the 70s (systematic, tough), professional firms in the 80s (no systems, too gentle) and, since then, just about every other sort of business you can think of. I’ve written books on the topic, spoken all over the place about it and the blog in this website is my way of “giving back”. I hope you find it helpful.

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