Virtually every company will experience customers who pay late. The challenge is to keep every client paying on time and in full. Create a habit of payment in
all of your customers.
Companies are scrambling to get new business, keep business and get money in the door. Most focus on immediate gratification and are unaware of the long term affects of their actions. In many cases they are more concerned about the immediate dollar than the customer. While this attitude does have some benefit monetarily, it can lead to disastrous unintended consequences which are difficult to manage and sustain. Truth is, you must do both, focus on the customer and the immediate dollar but most companies cannot seem to bring the two into unison.
When dealing with customers, there is a conflict. For example, when a customer takes advantage of your good nature to exploit your company and not pay. Do you fire the customer and lose that income source or do you continue to allow them to owe money month after month? The key is to break their habit and bring them into a habit of payment. This is not an easy task but there are simple ways to change attitudes and keep the customer. If someone has been doing this to you for years, you need to break them of their tradition of not paying you. One main factor is to set the stage at the beginning of the business relationship and be consistent. When you set parameters from the beginning, it causes virtually every customer to pay on time and even appreciate the business relationship.
When customers pay late, it costs you money. Fact is, the later a customer pays, the less likely you are of getting paid. You must learn the techniques that are effective and condition your customers into a habit of payment. Since 1989, CJM has provided valuble methods that have been proven to increase revenue.