did you hear about …

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did you hear about …

guess what I just heard ...An oldie, but a goodie! People don’t like to be embarrassed. (See an earlier post – robynne’s childcare centre to see just how effective embarrassment can be as a collection technique.)

So, how can we use this when chasing slow payers? Try a variation of this. The trick is to be very, very subtle about it.

One school, in Western Victoria, after attending one of my seminars, told us that they now use embarrassment very effectively, once a year, for all parents of departing Grade 12 students who have overdue fees. At the beginning of the last term, the school sends them a polite letter advising them of the amount outstanding. I can’t remember the exact wording that they used, but the letter also said something along the lines of

… The next meeting of the School Board is to be held on (date). If your account still remains unpaid at that time I will be obliged to report your name and the total amount due to the Board for their consideration regarding any future collection action required. For your interest, current members of the School Board are …

And then the letter goes on to list all members of the School Board. The school’s in a small provincial town, so everybody seems to know everybody else and they gossip. A lot!! Guess how important it is for parents to keep off this report? Very.

Oh, by the way, there is no such meeting held. There is no report. It’s a bluff. But the parents don’t know that!

(Do you have Board meetings? Partner/Director Meetings? A report to be sent monthly to the owner of the business? A Head Office? Even if you don’t, do your account customers know that?)

By | 2017-09-20T13:16:29+00:00 January 21st, 2009|techniques|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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