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It’s one of the biggest pains in the backside that window companies have to suffer, customers who don’t pay when you finish the job.
What is the best way to deal with them? In my experience it’s always best to filter out those who you think are most likely to be problem customers. You can decide then if you want to deal with them or not. Of course when time’s are as hard as these, turning any business down isn’t an easy decision. But sometimes you have to think ahead and anticipate what possible problems these customers can cause and how much it could cost you to put the situation right.
Dealing with non-payers at the end of the job is sometimes a difficult one to judge. Do you threaten to take back the products, even if it means leaving holes in their property? Do you threaten court action (once reminder letters have been sent out of course)? Taking back products can often lead to confrontation, and can give the impression that your company is slightly heavy-handed. Though from a contractual point of view, companies are still well within their rights to take back what hasn’t been paid for. More often than not, the threat of court action and constant reminder letters usually does the trick. Customers tend to see how long they can get away from paying, though they know at some point they will have to hand the money over.
I would also like to make the point that the company I work for has a policy where as soon as the work is finished, we expect payment straight away. No dragging feet for a few days or over the weekend. When the work is done, it’s to be paid for. If the customer has any little niggles (though I’m glad to say we have great fitters who don’t cause so many), then we get it sorted ASAP – which means the customer doesn’t have an excuse not to pay promptly.
However, a lot of the time it is the fault of the company for customers not paying. Poor customer service, product quality, bad workmanship and lax after-sales care are the biggest causes of customers refusing to pay at the end of the job. If you expect prompt payment, don’t give the customer an excuse not to pay.
What is the best way to deal with them? In my experience it’s always best to filter out those who you think are most likely to be problem customers. You can decide then if you want to deal with them or not. Of course when time’s are as hard as these, turning any business down isn’t an easy decision. But sometimes you have to think ahead and anticipate what possible problems these customers can cause and how much it could cost you to put the situation right.
Dealing with non-payers at the end of the job is sometimes a difficult one to judge. Do you threaten to take back the products, even if it means leaving holes in their property? Do you threaten court action (once reminder letters have been sent out of course)? Taking back products can often lead to confrontation, and can give the impression that your company is slightly heavy-handed. Though from a contractual point of view, companies are still well within their rights to take back what hasn’t been paid for. More often than not, the threat of court action and constant reminder letters usually does the trick. Customers tend to see how long they can get away from paying, though they know at some point they will have to hand the money over.
I would also like to make the point that the company I work for has a policy where as soon as the work is finished, we expect payment straight away. No dragging feet for a few days or over the weekend. When the work is done, it’s to be paid for. If the customer has any little niggles (though I’m glad to say we have great fitters who don’t cause so many), then we get it sorted ASAP – which means the customer doesn’t have an excuse not to pay promptly.
However, a lot of the time it is the fault of the company for customers not paying. Poor customer service, product quality, bad workmanship and lax after-sales care are the biggest causes of customers refusing to pay at the end of the job. If you expect prompt payment, don’t give the customer an excuse not to pay.
>"Though from a contractual point of view, companies are still well within their rights to take back what hasn't been paid for." This is a dangerous thing to say, as it is not true unless you have the customer's permission to be on their property and remove the windows/doors (which, let's face it, you're unlikely to get). Without permission, once the windows are installed you have no rights to remove them. In short, the windows and doors are considered as part of the structure of the building, rather than a fixture or fitting (I'm not sure whether the same applies… Read more »
>You didn't mention in your (good) post anything about the terms and conditions of sale that your customer signs?I know many companies that have specific clauses in their contracts relating to non payment. Some are downright fair, others totally one sided in favour of the company. A good one is where it allows the customer only to withhold 5% if they are THAT unhappy until defects are rectified also stating that there is NO exception to this and any shortfall will be pursued. I think in our industry we suffer with the serial bullies who are difficult customers from the… Read more »
>Mike – I was always under the impression we could just remove what isn't paid for, but I'm open to correction :)but you can understand why out of sheer frustration why some resort to doing such a thing. Nick – we do have the 5% clause in it, and do enforce it when required. If a customer starts to say that they're not paying until all problems are rectified, we do press them hard on that clause, works every time I might add! You are also right to point out that if customers are unreasonable with companies, the company is… Read more »
I have Windows replaced last September and in days noticed handprints sucker cup marks label marks and fluff all with the sealed unit. The company accepted my complaint and arranged replacements which turned out to be just as bad so installer refused to replace them. The company got report done by GGF whose say these marks are acceotable lol. I appealed but they say company have no case to answer. I have rejected the whole order 6 months on and their now trying to say I refused to let them change them so expect me to pay balance for Windows… Read more »