The Psycho Method ( Collections )
If you’re in business, as we are, you’ve probably run into a situation where someone has said these all prolific, reassuring words: “Don’t worry, the check is in the mail.”
Perhaps, you’ve been lucky and this hasn’t happened to you. I’ll betting on the odds that it has.
It goes something like this: You did the right thing; signed, sealed and delivered the goods, and then, somehow the client doesn’t pay.
Have you had this happen? It doesn’t feel good.
Let’s Back It Up
When I was on 5th Ave. and East 21st Street, I had 100% paid invoices in the first 5 years of business. I also had only 180 design clients.
Then I started a magazine in 2000 in Williamsburg | Brooklyn. My client list jumped up through the roof.
In 2006, I had an intern count all the files with contracts and check receipts in the 6 filing cabinets we had in the back office. She came back an hour later and counted 3,628 folders with check receipts and signed contract in them.
The contracts ranged from $25. – 25,000+. I had only been in business for 12 years with DisciplinedBeauty.com and 11211 Magazine represented only 6 years of those years.
The math went something like this: 365 days x 12 years = 4380. Now 4,380 ÷ 3,628 = 0.82 sales per day. How about that?
I had no idea and was running, running and running.
Ok… back to the initial question in point:
Have you ever had a hard time collecting money from a client?
I designed something called: ThE PsYcHo MeThOd for collections. It works like magic.
Here’s all you have to do:
- Is the invoice over 30 days? It is over 60?
- Make calls asking for the person you need to speak with.
- Is there is a gate keeper? Let them know that you are calling about $$$.
• Week one = 1 call.
• Week two = 2 calls.
• Week three = 3 calls.
• Week four = 4 calls.
Second Month: increase to a call a day.
• Day one = 1 call ( pattern interrupt ).
• Day two = 2 calls.
• Day three = 3 calls.
• Day four = 4 calls.
• Day five = 5 calls.
• Day six = 6 calls.
• Day seven = 7 calls.
• Day eight = 8 calls, (see below).
In only 5 weeks, each and every time the telephone rings, they won’t know if it is you or not. I won’t go into what this kind of consistent and disciplined tactic does Neurochemically to the brain but, you get the idea. 😀
This works particularly well at restaurants and service based-businesses. Out of 1000s I’ve had the great pleasure to work with, I’ve only had one place get up to 8 calls a day. They finally paid.
They almost always do. My employees over the years really got a kick out of it. It was the highlight of our day, sometimes. They may ask you to never call them again but, why would you want to do business with them again?
Out of 4,500 client/customers I’ve had in 19 years, I’ve gotten beat 14 times.
This may not work for larger corporations 100% of the time. If you don’t want to do it, I will. We can work out a percentage of the claim.
Remember: Slander (on Social Media) is a penal liability, unless the accusation happens to be true. Then, it is just journalism.
Speak to an attorney, just in case, to make sure this will work for you and your type of business. I hope this was helpful.
In response to the above posting, an nice attorney warned us:
“… too many calls by a creditor, in this case the company calling 8 times a day, has been challenged as a tort —Intentional Infliction of Emotional Distress— for which the client could actually win damages.” 🙂So, keep the calls @ 7 instead of 8. It’s doubtful that you would go beyond the 6th week, but, you never know. Call and let us know..