Ask The Gift Basket Expert » Getting Paid

How to Collect on Non-Paying Accounts

Shirley George Frazier — Sun, 07 Dec 2008 16:47:39 +0000

Lydia asks:

“What’s the best way to collect on an account that isn’t paying?

I made the mistake of trusting a new client, and now it’s costing me money. It’s just a $50 basket, but it’s my money. How do I make her pay?”

I bet that more gift basket designers than you realize have experienced this problem, including me. I once extended a first-time customer credit on a $30 basket for one reason: her telephone tone was forceful, and I allowed her to control the conversation.

After a month of calls, I finally received the $30 payment, and at the same time I didn’t blame her. I blamed myself for not creating a set of rules and following them.

I recommend that you call the client asking when payment will be mailed. She may have innocently overlooked the bill, and since you did not ask for money up front, this is the best way to start.

Next, immediately follow up your telephone call with a bill sent by mail that’s accompanied by the collection letter in Top 10 Letters.

One call is sufficient. If you resort to sending more notices by mail, the final notice is to be included with a letter that implies legal ramifications.

Send the final notice by certified mail. Her signature will prove that the letter was received, which is a necessary court document.

Hopefully, the collection of $50 will not be settled in court, but sometimes this is the only way to receive payment. You might also consider writing the amount off as a bad debt.

Hard lessons are learned in all businesses, but don’t beat yourself up over this. Proceed accordingly, and be grateful that it’s $50, not $500.

© 2008-2010 Shirley George Frazier. All rights reserved. Shirley George Frazier is recognized as the leading authority on the gift basket industry. She is author of How to Start a Home-Based Gift Basket Business, The Gift Basket Design Book, and Marketing Strategies for the Home-Based Business. Visit GiftBasketBusiness.com for videos, CDs, reports, tips, online newsletter, and much more to learn, grow, and profit with gift baskets.

How to Collect Payment

Shirley George Frazier — Tue, 29 Apr 2008 19:48:17 +0000

Jenny asks:

Thanks very much for your newsletters which are really helpful. Could you please advise on starting a GB business at home how one goes about getting payment once a basket has been ordered. What is the most diplomatic way of ensuring this but being firm at the same time not to lose money. I am thinking of starting this business in South Africa, as I’m sure this would work there.

Not knowing the specifics about your region and how similar (or different) it is to how we collect payments here, I’ll provide you with some examples of how designers transact business in the U.S. Hopefully, a part of the following scenario will be useful.

A customer telephones a designer to place an order. When the gift basket is chosen, the designer asks, “Will you be paying by credit card?”

The response:

“Yes.” The credit card (or debit card) number, security code, name on the card, and address of the card holder is verified with the customer. The transaction is completed with assistance from a credit card terminal set up through a bank or third party credit card processor, and the basket is delivered in the manner specified by the customer.

“No, but I have a PayPal account.” The designer collects the amount due through PayPal by: 1) providing the customer with the Email address to transfer monies into her (designer’s) PayPal account, or 2) logs into PayPal to send a “request for money” to the customer’s PayPal account.

“No. I’ll pay when you deliver the basket to me.” It’s the designer’s decision to either accept this option or request prepayment from the client. This depends on many factors, such as if the customer is new, how the customer was referred, and how far the designer must travel to deliver the goods.

What if the person is not there when delivery is attempted or has forgotten to bring adequate cash or pays by check and you’d rather receive cash? There are too many ifs in this scenario, which is why most designers prefer prepayment.

Payment by mail is usually too slow an option, and payment by credit card on delivery is irrelevant for most, as it’s not possible to connect credit card processors to cigarette lighters within vehicles (could this technology be around the corner?).

These are the solutions I can name quickly. Who’s familiar with others? Please share your thoughts here.

Good luck, Jenny. My fingers are crossed that this response will provide you with a way to collect payment.

[tags] gift baskets business, how to collect payment, credit card processing, PayPal processing[/tags]

Is PayPal Really that Bad?

Shirley George Frazier — Tue, 08 Jan 2008 18:39:07 +0000

This picture represents the usefulness of my online shopping cart. I didn’t like it when I installed it, and in today’s market, I like it even less.

So guess what? I’ve just added a PayPal option in an attempt to make the order experience more friendly. It:

Collects money worldwide (isn’t that why we’re in business?)
Offers credit card payment options
Lets customers order without becoming a PayPal member

A payment system that’s kind to customers is always better for business.

But there’s the other side to the story. Colleagues have told me that some of their customers don’t want to use PayPal for orders. Here’s what I’ve heard.

I can’t stand it
I had a bad experience once and won’t go back
Isn’t that just for people on Ebay?

I remember when “reputable store owners” wouldn’t dare put PayPal on their sites, but time seems to have been on PayPal’s side. I easily added my product roster into the system and am ready to roll. Many customers have used this option in my traditional cart, so why not set it up as a separate store?

What type of payment collector works best for you? Is PayPal one of your payment options, or do you think you’ll be branded as an “unsavvy business owner” if you paste their logo on your site?

[tags]gift baskets, PayPal, payment processors, payment options[/tags]

Ask The Gift Basket Expert » Getting Paid

How to Collect on Non-Paying Accounts

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Is PayPal Really that Bad?

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