Pitching quotes, marketing a product or service, and providing for the needs of a customer all take time. As a small business owner, that time is, as they say, “money.” When a customer does not pay due to dissatisfaction, that is now money coming out of your paycheck — something that is difficult on the margin of the average small business owner at the best of times.
Offer to “Make it Right”
Many claims of dissatisfaction can be corrected, and payment remitted in full. If an order was missing two cases of drywall mud – track down the missing inventory and replace it. If a dress was incorrectly altered, have the customer bring it back for the right sizing. If a car is still not running correctly, keep working to fix the original issue.
The simplest method to collect payment is to make the customer happy.
Negotiate a “Fair Deal”
In other cases, you can’t fix the original problem. Perhaps your moving company tore a personal painting, or your flower delivery was late for a reception. In these cases where the customer still got value but was not fully satisfied, offer to negotiate a fair deal for the goods and services that were satisfactory. Considering charging for inventory and discounting for labor, or perhaps refunding the cost of a specific item.
Often times, partial payment can satisfy both parties.
Begin the “Paper Process”
If all methods to remediate the complaint fail, it’s time to begin the legal process. In addition to documenting your efforts to date, you’ll want to carefully provide written notice from this point on. After multiple attempts to collect the debt, you can turn to the courts to demand the money that is fairly owed to you or consider selling the claim to a debt collection service.
Remember to consider the value of the debt vs your costs to collect, as smaller debts may not be worth pursuing a lengthy process.
Avoid Future “Misunderstandings”
In the future, make sure you are protected with a solid contract or set of policies for services. Detail upfront the obligation of the customer if there are not satisfied with the initial delivery. While not every problem can be prevented, clear communication of costs and liability can save all parties from stress in the future.