Here is my eleventh blog post covering the subject of getting paid by your customers. Again, I draw my writing from the article, “How to Collect from Anyone (Even Enron)” found in Inc. Magazine
Way to get paid #11: Revoke Privileges. Rolf Albers of Albers Manufacturing Co. has been in business for 23 years. One thing still baffles him: “If I went to Sears today and wanted to buy a refrigerator, they would make me pay today, in one form or another,” he says. “But a small manufacturer with no track record can call me, wanting $1,000 worth of equipment, and they think they can wait 90 days to pay. It’s a stupid system, but that’s the way it is.” So Albers does his best to prevent his customers from taking advantage of “the system.” If a customer gets too far behind in payments, Albers immediately converts that customer to COD status going forward, unless it’s one of his big customers. In that case, “they pay when they feel like it,” he says.
“In war then, let your object be victory, not lengthy campaigns.”– from The Art of War by Sun Tzu.
“Nip it in the bud! Nip it Nip it! Nip it!”—Barney Fife, The Andy Griffith Show