Unfortunately adding a fee will sometimes just motivate the person to not pay at all because the amount they owe keeps going up.
Depending on how much it is and how badly you need the money, you could always sell the liability. IE if someone still owes $500 you can probably sell that for $150-$200 immediately to a collection agency and then it isn't your problem anymore. Not a fun customer service decision, but effective.
Perhaps 4% for first 90 days then sell it to collections?
If you require full payment for sending, then what are your cases of late payments? Do you meant people who's suits are done and ready to ship, but they haven't paid their balance yet? If that is the case, then sure, 4% per month, then max 90days and the suit goes on Ebay :)
Did you ever get credit card payment sorted? That would help alleviate this, as people can a least be encouraged to take the balance owed in to their own credit.
Your payment terms have always been a big plus (i.e. not having to pay to reserve a slot) and it's a shame if people take advantage of your more conventional approach to payment.
since your a well established and trusted builder you should not feel bad asking for a higher percentage amount up front I think. When you attach extra charges and fees it gives the perception of being greedy to some people.
This of course isn't the case but I think that overall it will negatively impact your business. Now if I were in your position I would use the same formula that apartments use. You take a tab that is devied up. part of it is the deposit and the other portion is the materials cost/fee. If they fail to pay you keep the deposit portion. Write it into a bindable contract that states that you get to keep the portion your damaged for lateness of their payment to you like a rental is damaged for a renter breaking a lease.
This way your customers have incentive to pay. With a fee they feel slighted as its backloaded and seen as paying extra rather than front loaded and merely seen as apart of the overall cost.
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Unfortunately adding a fee will sometimes just motivate the person to not pay at all because the amount they owe keeps going up.
Depending on how much it is and how badly you need the money, you could always sell the liability. IE if someone still owes $500 you can probably sell that for $150-$200 immediately to a collection agency and then it isn't your problem anymore. Not a fun customer service decision, but effective.
Perhaps 4% for first 90 days then sell it to collections?
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As for collections, international clients may make that difficult / cost prohibitive.
For abandoned, ebay or here works well to find a new home, thanlfully that is a rare event. 3 in total I think. Which isn't so bad.
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Your payment terms have always been a big plus (i.e. not having to pay to reserve a slot) and it's a shame if people take advantage of your more conventional approach to payment.
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Just not Barclays ;)
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This of course isn't the case but I think that overall it will negatively impact your business. Now if I were in your position I would use the same formula that apartments use. You take a tab that is devied up. part of it is the deposit and the other portion is the materials cost/fee. If they fail to pay you keep the deposit portion. Write it into a bindable contract that states that you get to keep the portion your damaged for lateness of their payment to you like a rental is damaged for a renter breaking a lease.
This way your customers have incentive to pay. With a fee they feel slighted as its backloaded and seen as paying extra rather than front loaded and merely seen as apart of the overall cost.
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For abandoned costumes, after agreed uppon by both parties, the costumes get auctioned.
I have returned deposits in past, depending on circumstance and how far along I am in the project.
But, neither helps in the case of late payments, which is the things I am concerned about lately. It's tricky. Such is life.
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