Ethics question, Folks!

[T. Cotten]

Ethics question, Folks!

So imagine you are a professional service provider, and the customer disappears for five years after he gets your invoices. Suddenly he's back.

With a $4G tab, I didn't ship them blind (like I do for most Folks).

I know everybody else in the industry would have already whored the carbs off, but I would like to know now how much I should bump my invoices, in an industry where apparently some "pros" don't bother writing them at all. Thanks in advance as always,...

....Cotten
PS: There's an abandoned DLX61, 'blue-printed', that's been here a decade if anyone needs one.

[pisten-bully]

Cotten, if there is such a thing, standard late charges (and I followed this in my billings) is 1% per month on overdue balances.

Probably much like your experience I had very few who did not pay on time, but there were some laggards...so I invoiced them monthly: overdue original balance on one line, late charges on a second line, then a total balance due. Obviously the total balance due kept increasing with every month that passed. Typically I'd receive payment before the 60 day mark as long as I invoiced them monthly as a reminder. Note: very few ever paid the late charges! ... but I got my original balance due.

In twenty plus years of selling parts I wound up writing off less than $200. PITA to keep invoicing folks, but it worked for me!

p.s. wish that DLX was a 63!

[T. Cotten]

As primarily a service provider, Harry,..

My losses were built-in, I guess.

One percent per month for half a decade sounds like I am going to eat these Schebs.

Your visitor message image is too tiny to read clearly, but please understand that my invoicing is as explicit as possible, yet I was always too generous anyway.

.....Cotten

[Steve Slocombe]

Dear Tom, put something in your Sales Terms and Conditions. Mine say 'Goods remain the property of VL Heaven Ltd until paid for in full. Unpaid work or parts will be sold six months after date of invoice, and any money after outstanding bills, storage and handling returned.' I've had some slow payers but don't recall having to sell unpaid parts yet.

[Skirted]

Eh....I'd probably factor into equation if the customer seems like a nice guy who ran into some life problems and if he is apologetic about sticking you with the unpaid invoice. Or is he an arrogant ego maniac who has zero remorse of his failure to pay? I suppose after 5 years I'd probably be inclined to grab the $4k and run before he disappears again. Not saying I'd do that, especially if he fits the latter description, but it would be tempting to close the case and move on.

[Dablaze]

Not that this is the situation with you Tom, but remember that there are so many “providers” in this industry (I’ve worked for a few) that have peoples projects sit on their shelves unfinished for years. It creates a president I suppose that there is no hurry.
I like Steve’s suggestion,

Craig

[T. Cotten]

Not that this is the situation with you Tom, but remember that there are so many “providers” in this industry (I’ve worked for a few) that have peoples projects sit on their shelves unfinished for years. It creates a president I suppose that there is no hurry.
I like Steve’s suggestion,

Craig

Indeed, Craig,...

It took me four years to complete the six fossils, and honestly, no professional in their right mind would have tried.
(And by that measure, I am also the only one who would have succeeded.)

Still, they were invoiced in detail when finished, and the owner said he was in Africa at the time, but would wire me the money from Germany. Naturally I held on to them, even though I have sent out my work without pre-payment for decades. With the exception of getting stiffed for a float now and then, vintage motorcycle enthusiasts are the best customers in the world.

So now he's back. Maybe he just forgot.
But he's had me on the hook for the moneys I paid my associates, welder, and parts suppliers, etc., for all this time.
I'm not a banker.

....Cotten
PS: Steve!
I'm trying hard to figure how I would apply your suggestions, probably only because of my bizarre Illinois licensing.
My showroom is plastered with framed policy signs, such as 'no returns on special orders', 're-stocking fees', and the usual liability disclaimer. Pertinent is "LIBERTY makes no promises of time of completion or cost... It is not the nature of the restoration industry!"

All are meaningless in court, but it makes it look like a shop.
(Lest I forget: "Please remove all firearms before leaving your vehicle for service.")

[Dablaze]

Tom,

love your post…so many great points but especially “vintage motorcycle enthusiasts are the best customers in the world”

got me smiling!

Craig

[duffeycycles]

Large sign on my wall says all vehicles bills must be paid within 10 days or there will be $15 per day late fees.

[T. Cotten]

Signs on the wall never really did anything for me Duffey...

(Although I pointed at the "Do not ask to borrow tools" sign often enough.)

99.9% of my customers over the last two decades never saw my shop; Enumerating policies on my invoices would be mighty fine print, and un-enforceable in my state.

There's a Famous James that's been a plant stand in my front window for a couple of decades. The fellow's widow showed up with a boyfriend that watched too many Pawn Stars and demanded it.

I said fine. $50 a month storage for twenty years will do. Its still here.

....Cotten

[T. Cotten]

I guess it was a rhetorical question, Folks,...

The customer went silent again.

....Cotten