How do you handle non-payment from a customer?

[CawMama]

I'm really getting ticked here. I had a girl call me 6 weeks ago, telling me her baby was in teething hell, and that she needed some stuff ASAP. She is a local mama (I've never met her, but she name dropped our local LLL leader), and she wanted to pay by check. No problem.....I'll send the stuff out and you can send a check to me.

So, she has never paid. I've talked to her on the phone twice since then (she says she paid via an invoice I sent thru Paypal, but she didn't), I've sent her a reminder invoice weekly, I've left messages telling her I can come to her house if she needs me to.

What should I do next? I don't want to be harassing, but this just really makes me mad. The trusting/naive side of me thinks "maybe she has had a death in the family or something, and just can't handle her daily tasks".

She owes me $65....not a huge amount. Should I have an attorney write a letter for me, or should I just chalk this up as a lesson learned the hard way?

What would you do?

[dogmom327]

I think I'd let it go as a lesson learned. Personally there would be a limited amount of time and anxiety I'd want to put into $65.

So sorry that happened to you...it's so frustrating when people do stuff like that!

[earthyamber]

{{Hugs}} I'm sorry you have to deal with this. That is not cool. I have not had any non-payers recently, but I did have one with my cleaning business a few years ago. It wasn't a lot of money but I refused to let it go. I found a good template online (formal sounding) that threatened to send them to collections and legal action if they didn't pay within 14 days (I sent it where they had to sign for it). I got paid within 2 days (it was only $50). I don't believe in not getting paid and I think you have to be firm sometimes. Right now I make bath and body products and everything is $20 or less. I would still take the same action because I believe in honesty and taking a product and not paying is stealing! I don't tolerate stealing of any price and I would write a formal letter and if it doesn't work, look at your legal options. You deserve to be paid and she needs to learn that it is not okay (and perhaps stop her from doing it to others as well). So me personally...I wouldn't let it go. 6 weeks is a long time!

[broodymama]

I might keep trying, but I wouldn't expect too much in the way of getting payment. I only ship after payment has cleared. And for custom orders I require a 50% deposit up front before I begin their order, if they cancel after work has begun then that 50% is nonrefundable.

[CawMama]

I think I'm going to give her one more chance, and tell her if I don't receive payment, that my attorney will be contacting her. I know that it's a small amount of money, but if I just let it go, she will probably continue to do this to other people and think she can get away with it. Not cool at all!

[The4OfUs]

If she paid a Paypal invoice as she said, shouldn't she have some kind of invoice or receipt or proof? I'd ask for that so you can "have Paypal fix their error"

[rainbowmoon]

Why would you send items with no payment upfront?

I would chalk it up to a lesson learned (I had this happen to me one time too for over double that amount). Lesson learned.

I doubt an attorney can help you really (or they will charge you more than $65 I'm sure). Sorry.

[CawMama]

Originally Posted by rainbowmoon

Why would you send items with no payment upfront?

I would chalk it up to a lesson learned (I had this happen to me one time too for over double that amount). Lesson learned.

I doubt an attorney can help you really (or they will charge you more than $65 I'm sure). Sorry.

She is a local mom, who said she knew a good friend of mine. She told me that her baby was in horrid teething pain, and needed teethers ASAP, but that she wanted to pay by check. I guess I was being too nice (or naive).

I'm not really going to contact an attorney, but she doesn't know that.

[dogmom327]

Originally Posted by Carrin

She is a local mom, who said she knew a good friend of mine. She told me that her baby was in horrid teething pain, and needed teethers ASAP, but that she wanted to pay by check. I guess I was being too nice (or naive).

For what it's worth...I probably would have done the same thing

[lilyka]

i don't care how bad someone needs something. no one gets their products until I have cash in my hand. if they pay by check it has to clear first (I do not take checks but paypal does and it takes forever yo clear. ). I know times are hard but they are hard for me to.

even taking her to small claims court will be at least half of what she owes you? (it is $35 here just to file) I think a letter threatening to turn it over to collections is the best way to go.

[Mama Dragon]

I would offer to accept payments, ask her to send $20/20/25 and you'll drop it.

[Quirky]

I would call her up and set up a time to meet that she can give you her payment in cash.

That is SO not cool. It's stealing. Yes, it's only $65 -- but it's also $65 and I'd be totally miffed if it were me! She is taking advantage of you and I would be so PO'ed if it were me.

[Night Owl]

I agree -- this is a lesson learned, but you also need to get payment for what you sent out.

First, I would recommend contacting an attorney and running this story by her. If she recommends sending a letter, ask her to send one that explains that she owes you money and that she needs to send that money asap, by registered mail (or an online payment method), and outline whatever consequences you agree with the attorney are appropriate. Try to have the letter worded in such a way that it's not threatening, but clearly spells out what is expected.

Also, never tell a client or customer that you're going to call your attorney. Threatening attorney contact is lame. Just do it.

Second, I recommend you do one of two things in the future: Either require payment up front before sending out the product, or send the product as a gift. You can send a free, one-time sample, you can call it a holiday freebie. Send an invoice showing how much it was worth and that you've zero'd out the balance. Make sure the customer knows the value of what you sent and that you have done so at no charge, why and whether or not it will ever happen again.

But don't expect anyone to pay you after you've already sent out the goods.

[AlwaysByMySide]

I would send a letter, certified mail. Make it very professional sounding, lay out the facts, and tell her that she has 14 days to contact you in regards to a payment plan, or with a payment, or you will give it over to a collections agency. And, as the others said, I never send out anything until I have been paid. Period. I don't care what kind of emergency there is.

ETA: If she's local, I would drive over to her house and knock on her door, personally.

[CawMama]

Just an update....I finally got payment from her. I told her that I was in the process of filling out papers for small claims court. She paid right away. What a pain! 2 months of communication it took to get paid. That's such a bummer, because I'd love to be able to help people out, especially when they say that they are a friend of a friend. But, now I'm soured and my guard is up forever. I hate it when things happen that make me non-trusting.

Oh well, glad it's over. Guess I learned my lesson.