Collections -- when do you go from good guy to bad guy?

Anyone who is in a purely sales function has to worry about collections to a degree, but for the most part he or she can always be the good guy. When collecting sales that were made on account becomes an issue, the good guy salesperson can always refer to the "collections department."

There are those of us on this site who have not only a sales role, but also that of small business owner or consultant. We can sometimes be torn between managing the relationship as a good guy, but have to wear a "bad guy" hat when it comes to collections.

I generally stay with the "Good Guy" hat as long as possible. If a customer owes a decent amount of money, I often ask what I can do to help them... a payment plan, or something along those lines. During the course of this strategy, I then ask the customer to make at least some payment before we provide any more product or service.

What approach do other people on the board take?

Quote:

Originally Posted by Coda1108

What approach do other people on the board take?

I have a situation right now where our client sold his home, carried the note, and the buyer's first payment is in default. I will pay the buyer a visit today and most likely I will be perceived as the "Bad Guy".

Good luck, AZB. In such a case, do you call to make an appointment, or do you show up unannounced?

Quote:

Originally Posted by Coda1108

Good luck, AZB. In such a case, do you call to make an appointment, or do you show up unannounced?

If I'm in the area anyway or I've called before and they don't return my calls I'll show up unannounced. Otherwise, I'd call ahead.

Best of luck with that, AZ.

In my business, sometimes I have to chase an adjustment check or follow through if a residency form wasn't filed properly but I can usually do it over the phone and by email.

Avon tells us not to leave our product without being paid. That makes it easy for me except in one instance. My son brings me orders from two women at his place of work. He also delivers their products and they pay him. Sometimes he comes home without having been paid but they pay him within a day or two. So far, it hasn't really been a problem and he says he's glad to help in this way.

I'm in handphone business, most of my customers paid in cash. But we also offered installment but it's directed to the bank so I seldom encountered problems about collecting the money.

I really haven't had a lot of problems, but I'd probably stay with the "good guy" approach until the person I was dealing with was dishonest about something relevant to the payment.

Collections -- when do you go from good guy to bad guy?

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