Embroiderers who haven't paid their digitizers

repogolfer · March 22nd, 2012, 06:24 PM

Robert,

You guys do great work, we have been very please with your service.

Why not just set (Everyone) up on a pay as you go? Would you lose that many folks?

I know for our business we have less than 10 customers total that we allow to take their goods before payment is received....we tell the folks who want terms that are not major companies that we are in the printing business and not the bill collecting business..Most fine a way to pay.

Jon

Robert Young · March 23rd, 2012, 12:22 PM

Thanks, we try to offer terms to those that request it and many larger groups ONLY do terms as the one that stiffed us.

Here is another that we learned about today.. A new client asks for terms so we say OK. they use us for 6 weeks before we shut them down for non payment. (2 weeks after the first invoice at net 30 should have been paid) They got us for $415 in that time... and NEVER paid a dime.

Well today I had a client's cc be declined.. so I went into their acct to see what might be wrong.. maybe the card expired or something... low and behold the client that stiffed us for the $415 opened an acct under a NEW NAME a few weeks after we suspended them... and we have been doing work for them as a cc account since then. Same street address only one is suite 102 and the new one is suite 103... same contact person even!!

What crooks! I have closed their new account. I know they are paying now, but the point is if they are crooked enough to stiff us for digitizing payments then to me they are crooked enough to dispute their cc charges and screw us again.

powerstitch · March 23rd, 2012, 03:33 PM

This is the reason we don't even think twice to offer credit to a new company.

If they are interested in your services, they would pay in advance for each order and if that is a headache then they can pay a lumpsome in advance. And don't tell me that is a risk for them because its the same risk they are asking from me by me offering them credit.

If this is not acceptable, google is your friend!!

Ink Guy · March 23rd, 2012, 04:30 PM

I guess you never heard of how the old saying goes.
Screw me once shame on you. Screw me twice shame on me.
Demand a credit card up front with no exceptions. If it doesn't clear then don't send the files. If they won't pay you up front, do you actually think they will pay you after?

Ink Guy · March 23rd, 2012, 04:34 PM

Don't let them tell you how to run your business when they can't run theirs.
You own it, so make your own rules. If you don't have the balls to do so, then you will always be screwed.

Robert Young · March 23rd, 2012, 06:02 PM

I hear you Ink Guy, but doing that means you will not have the Club Colors, AIA, or Proforma franchisees then.. They each have dozens if not Hundreds of sales reps with all invoices being paid from a centralized office by check only. So the gamble with them is bankruptcy or foreclosure as happened with our client, but in the history of working with them for as long as we have you are still talking about hundreds of thousands of dollars that to me is worth the $555 loss. And still quite a savings over cc fees we would have paid if they were not terms... I was just complaining that it still should not have happened.

As far as the smaller clients we still tend to err to the side of trusting people and allowing terms to many that ask. Most are great payers but for those that do not pay I just see it as a character flaw in them not something I should penalize others for. I am just pointing out what does happen.

You are correct, it is a personal business decision that to us, even with the bad apples still makes us feel like we are providing a little bit of old school courtesy.

megrisoft · March 24th, 2012, 02:34 AM

I have also few clients from EmbroidMe Franchise which has not paid us after getting bulk work, we trusted because of embroidme.com brand name...

drdoct · March 24th, 2012, 12:13 PM

Powerstitch... I've got about 100 designs I'd like digitized but want to check your consistency. Could you do 4 different designs for free so I can test? Then could you do the other 96 on credit before my month's grace period is over? ;-) just kidding but dang you need to change your way of business if you plan on having any money. The embroidery business is almost as bad as the metal working business which is awful at paying their bills. I think terms are pretty much a dying thing nowadays anyway. If you want it now you pay up front or you don't get it. Not saying they should pay before seeing what you've done, but definitely before you give them the file.

gnizitigid · March 24th, 2012, 12:55 PM

Quote:

Originally Posted by drdoct

Powerstitch... I've got about 100 designs I'd like digitized but want to check your consistency. Could you do 4 different designs for free so I can test? Then could you do the other 96 on credit before my month's grace period is over? ;-) just kidding but dang you need to change your way of business if you plan on having any money. The embroidery business is almost as bad as the metal working business which is awful at paying their bills. I think terms are pretty much a dying thing nowadays anyway. If you want it now you pay up front or you don't get it. Not saying they should pay before seeing what you've done, but definitely before you give them the file.

Agree and i do offer two designs free as well as credit period.....but have seen 75% loss in the method... Many will not pay for months and once amount goes big, they will change digitizer...

powerstitch · March 24th, 2012, 02:38 PM

Quote:

Originally Posted by drdoct

Powerstitch... I've got about 100 designs I'd like digitized but want to check your consistency. Could you do 4 different designs for free so I can test? Then could you do the other 96 on credit before my month's grace period is over? ;-) just kidding but dang you need to change your way of business if you plan on having any money. The embroidery business is almost as bad as the metal working business which is awful at paying their bills. I think terms are pretty much a dying thing nowadays anyway. If you want it now you pay up front or you don't get it. Not saying they should pay before seeing what you've done, but definitely before you give them the file.

Hi....I know where you're coming from but trust me we are actually making more money this way and its working for us. If you were genuine about the 100 designs I still would have told you that the first 4 designs we will do it at half price, so if you are genuine you will pay, if not then Im not worried.

And I have changed the way I run my business thanks for the advice (not that I need it) and Im making money.