bob – the builder (part 5)

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bob – the builder (part 5)

this is part 5 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 principles of effective account collections are applied in real life.

To see all of bob – the builder from the very beginning click here.

10 February
Bob advised that the email organised for 06 February did NOT get sent as he hadn’t been charging interest since February! As John Lennon said “Life is what happens to you while you’re making other plans”. So, a new email was organised. This one DID get sent.

13 February – email sent to Dave (the debtor)

Dear Mr Developer,

Thank you for your email and for the payment sent on 30 January.

Bob-Builders understand that the exact monthly figure cannot always be guaranteed but 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.

In view of your recent payment, no interest is being charged on the balance remaining. This will continue to be the case as long as regular instalments continue. However, please be quite clear that if no reduction is made in any one month and you have not advised us accordingly beforehand, the firm will be left with no alternative other than to re-introduce the interest component in protection of its interests.

Thank you once again for the last reduction made and we now look forward to the next one which is not due until on or before Friday, 27 February.

Regards,
Michael Todd.

Note the Points made in THIS 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. although interest is not currently being charged, it will be re-introduced if he doesn’t make regular payments or keep in touch.

What will we do next?
Send Dave an email just before 27 February. We’ll be Hard To Ignore.
So, dear Reader, until next time…

go to bob – the builder (part 6)

 

By | 2017-09-20T13:10:46+00:00 February 16th, 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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