Ever dumped a client?

pxl8

pxl8

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Andy Jones
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I dropped one yesterday because I got fed up of constant late payment of invoices with excuses on the level on "the dog ate my homework". The work was fairly regular but didn't bring in much money, maybe £100 a month.

After the latest invoice went late and the reasons given included "we don't get paid by our client until Sept. and only 5% of our invoices are paid within 30 days" I decided enough was enough.

Anyone else dropped one and why?
 
pxl8 said:
I dropped one yesterday because I got fed up of constant late payment of invoices with excuses on the level on "the dog ate my homework". The work was fairly regular but didn't bring in much money, maybe £100 a month.

After the latest invoice went late and the reasons given included "we don't get paid by our client until Sept. and only 5% of our invoices are paid within 30 days" I decided enough was enough.

Anyone else dropped one and why?
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Well not photography related, but we have about £10k in outstanding debt from a period of 6 months or so. All dropped and going to court.

Gary.
 
Rather than drop a client who pays about £1200 per annum, why not renegotiate terms to cash on delivery? If they don't want to play by those rules, then drop them.
 
Nod said:
Rather than drop a client who pays about £1200 per annum, why not renegotiate terms to cash on delivery? If they don't want to play by those rules, then drop them.
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I did extend an olive branch asking them to come up with a solution, that's when I got the excuses above. If they'd started talking about new terms I would have accepted something like 50% up front the rest in 60 days. As they stuck with the excuses clearly they aren't really interested in improving the relationship so it was time to say goodbye.
 
This is exactly why I don't do anything until I'm paid first, though I have no 'corporate' clients who tend to expect weeks/months to pay a bill

If a poor payer annoys causing ill-feeling, and causes any more work in chasing, then I'd think that's hassle I could do without and would drop them too if no offer to be more reasonable was on the cards

CoD is good, but CbD is better

DD
 
I've done a few jobs for one place and at the start I said that I'd like 50% up front then the rest within 30 days of providing the photos (and invoice). Still doesn't happen, they have a policy of paying invoices after 60 days and nothing will change that. It's not a lot of money, and they have paid up each time in the end.

If it was for more or I was in this full time then I'd say something, but for the regular side line (albeit only £30 £40 a time) I'll just let it be.........for now.
 
Sod'em then!
 
Cash up front or on delivery for me always then you dont need to worry :D
 
I use to run my own design company, (construction industry).

Only really had one client who paid late on a regular basis. Didn’t really want to loose him so wrote saying that prices have risen 10% and also offering 10% discount for payment within 7 days of invoice.

He was the only one that got the 10% rise and 10% discount ;)

Worked a treat :D
 
Baz777 said:
I use to run my own design company, (construction industry).

Only really had one client who paid late on a regular basis. Didn’t really want to loose him so wrote saying that prices have risen 10% and also offering 10% discount for payment within 7 days of invoice.

He was the only one that got the 10% rise and 10% discount ;)

Worked a treat :D
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I've used that one and it works well.

Have also dealt with blue chip companies who when told our payment terms said "well ours are longer", just have to grin and bear it.

Have dumped persistent late payers and taken a couple to court...and won.
 
Baz777 said:
I use to run my own design company, (construction industry).

Only really had one client who paid late on a regular basis. Didn’t really want to loose him so wrote saying that prices have risen 10% and also offering 10% discount for payment within 7 days of invoice.

He was the only one that got the 10% rise and 10% discount ;)

Worked a treat :D
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now that a good idea:)
 
I'm surprised that in this industry a photographer can afford to drop regular client for a reason of late payment! If the paltry sum of £100 per month was just that, as long as it is paid is it such a hardship? Given the current economic situation you have just cost yourself much needed cash.

You're choice but I would not have dropped them so readily!
 
scoff said:
I'm surprised that in this industry a photographer can afford to drop regular client for a reason of late payment! If the paltry sum of £100 per month was just that, as long as it is paid is it such a hardship? Given the current economic situation you have just cost yourself much needed cash.

You're choice but I would not have dropped them so readily!
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You have to factor in the amount of time you waste chasing late payers in order to make the decision.

In my business £100 is only about an hour of my time but if chasing it prevents me finding new business I'll weigh it up and take it from there
 
not dumped any but must admit felt like taking a dump on a few!!!!
 
In my line of work (traffic management) we have about 20% that pay on time. Everyone else takes the biscuit.
 
PsiFox said:
I've used that one and it works well.

Have also dealt with blue chip companies who when told our payment terms said "well ours are longer", just have to grin and bear it.
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If you've agree to the longer terms then yeah, not much you can do about it. If you haven't agreed terms then what the invoice says is what counts, pay late pay a penalty and interest thanks to the Late Payment laws. :thumbs:

scoff said:
You're choice but I would not have dropped them so readily!
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It's partly the time wasted chasing them and partly because my gut feeling was that in time it would get worse. Losing £100 a month isn't much in the grand scheme of things, this mornings print orders have already exceeded that :thumbs:
 
Baz777 said:
I use to run my own design company, (construction industry).

Only really had one client who paid late on a regular basis. Didn’t really want to loose him so wrote saying that prices have risen 10% and also offering 10% discount for payment within 7 days of invoice.

He was the only one that got the 10% rise and 10% discount ;)

Worked a treat :D
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The 10% rise and 10% discount is not bad from their point of view though, as you actually do give them a real discount to 99% of the original pre-increase fee

So your worst payer actually got your services cheaper than your best payer? Bit odd that isn't it?

:shrug::shrug::shrug:

DD
 
DiddyDave said:
The 10% rise and 10% discount is not bad from their point of view though, as you actually do give them a real discount to 99% of the original pre-increase fee

So your worst payer actually got your services cheaper than your best payer? Bit odd that isn't it?

:shrug::shrug::shrug:

DD
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Not if he suddenly became the best payer! :naughty:
 
LadyLens said:
Not if he suddenly became the best payer! :naughty:
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So if I get this right then...

Those that pay when they should get no incentive

Those that pay consistently late get a 1% reduction for paying when they should

:thinking: :cuckoo:

If it works though and you're all happy - so what I guess

DD
 
I think my worst payer is Somerset County Council but they have a very convoluted system, invoice goes to the person who commissioned the work, then to their head of dept, then payroll, then another section who have to check each invoice doesn't fall under PAYE rules, then back to payroll before finally being paid by BACS. At time you can have massive delays because one person in the chain is on holiday followed by another.

They are at least aware of the Late Payment rules and pay the penalties, they are also constantly sending out memos to staff telling them to get invoices processed asap because of all the penalties they're paying ;)
 
100 * 1.1 = 110
110 * 0.9 = 99
 
EdinburghGary said:
I am confused :D

How does 100% + 10% -10% = 99% ?


100, +10, -10 = 100?

Gary...
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Sorry Gary, but your basic maths is out

100 x 10% = 10

10 + 100 = 110

110 x 10% = 11

110 - 11 = 99

Okay?

I know it's a bit odd sounding, but it's a bit like working out VAT

£100 plus VAT @ 17.5% is obviously £117.50

But £117.50 - 17.5% isn't the £100 you started with, it's £96.94 (rounded)

Cheers

DD
 
im a freelance web coder/coder and work by this rule if not paid within 30 days they don't get the pass word that will allow them to continue to use the programming after 30 days..

so if they don't pay they can't use it,its the same code as trial programs.i now this doesn't work with images which is a pity..
 
Even though i don't have my own company (Due to age...) when ever i sell things i ask for it all up front or they can pay bit by bit but the don't get the goods til' i have been fully paid.
I even do it that way with friends when i sell them things, no item until i see the money!

And if i had my own company that's also how i would work, or 50% up front and the other 50% upon collection of item(s)
 
Getting it all up front or 50/50 is ok dealing with the public/private sales but unfortunately will never work with commercial clients. You can ask but generally they'll just laugh and look elsewhere.
 
Could you charge your client for paying late, rather than a discount for paying early? Or both?!

If they pay up front then give them some kind of discount, but after the first week and every week after add a charge?

More time/hastle = more money

Josh
 
At least BACS or whatever they call it now has speeded up - I was paid on Tuesday - got an email saying it had been paid and it was in the account same evening. Never used to happen before the banks were forced to stop stealing our money for a few days!
 
DiddyDave said:
The 10% rise and 10% discount is not bad from their point of view though, as you actually do give them a real discount to 99% of the original pre-increase fee
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I tried to explain this to a neighbour who was an accountant :shake: He kept on insisting I was wrong.
He was convinced that if you added 50% to the cost of something then your profit, when sold, would be 50%.
I couldn't make him see that the profit on return would be 33.3*%.
 
Skypilot said:
I tried to explain this to a neighbour who was an accountant :shake: He kept on insisting I was wrong.
He was convinced that if you added 50% to the cost of something then your profit, when sold, would be 50%.
I couldn't make him see that the profit on return would be 33.3*%.
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Guess it depends how you look at it.

50% profit from the cost price, yes.
50% profit from the sale price, no.

You're both right :D
 
When I was in business, I worked on the second chance principle, everybody gets a second chance, if they still mess you about dump them. I did it a number of times to private and commercial customers, it never felt good but I know that it saved me a lot of grief and did not harm my business (to whit, I gave it up 3 years ago and the phone still rings nearly every day with someone looking for work done)
 
Steep said:
When I was in business, I worked on the second chance principle, everybody gets a second chance, if they still mess you about dump them.
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Same here, although the latest one has reneged on a payment arragement for a good few grand. Solicitor should have started proceedings this week :(
 
were off to shoot a wedding in a couple of hours.we came perilously close to not turning up.
our contracts state money in full , two weeks before the day.
weve been chasing the bride almost everyday for two weeks.emailing and phoning.
phone off , or answerphone.got her once and "its in the post" ."still hasnt turned up).
sent her a FINAL email on thurday.
nicely put, but basicaly contact us or we aint turning up.if you have money probs, we can sort that.
rang an hour after the email was sent.
appologised profusely, and admitted they were in financial doodoo.
ok, but if you,d contacted us earlier, we would have been way more accomodating.we want to do a good job on the day.
anyway, weve had a further partial payment, and are turning up.
but its been made VERY clear, that they get NOWT till were payed in FULL.
am i being to soft? or have i got it right.
i rrealy didnt want to let a client down, and we want to keep a good reputation too.

60 odd weddings , and its the only one weve been close to dropping.
mark.
 
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