Non-Payers are Big Players
Fact is, some customers will string you along for payments because it’s in their nature. They don’t want to let go of that money that is owed to you. They exploit even the smallest gap in your billing and collection system and in some cases they are very effective.
Approximately 3% of customers make you work overtime to get paid. People who fall into this category avoid payment even in a good economy. So how do you combat such clients? Using proven methods to train them to pay transforms a slacker into a good customer. Many times we need to look at our approach to billing and collection to determine how we can improve. Stop blaming the customer and take measure to combat their dead beat nature. It’s difficult for many business owners to admit there is room for improvement and they continue along the same path for years. We cannot continue in a pattern of begging some customers for payment or chasing money. How many customers have you fired because they are just too difficult? That translates into a loss of income when it could have been corrected.
Good billing practices and simple strategies such as return envelopes, the appearance of your invoice, and how you ask for payment has an enormous impact on revenue. Can your customers pay with ease? Do you take only cash or one kind of credit card? Make every payment option available and give easy access and complete availability to pay. How many times have you walked into a doctor’s office and were able to leave without paying the co-pay? This is just one example of a missed opportunity by your doctor to get paid right away which saves time and money. All they have to do is ask the patient for the co-pay when they go to the window. It’s that simple but not every doctor follows this simple procedure and they lose income and waste time. Fact is, more people would rather pay right there and get it done. While some doctors are finally catching on, others continue to ignore this simple strategy.
How do you contact clients? Do you use snail mail, phone or texting? If you are not keeping up with today’s fastest communication methods, you will soon fall behind and not properly compete in today’s market place. When you understand what motivates non-payers to pay, you will have the advantage in virtually every business relationship. You can create a sense of urgency in these clients. Once you know how to get them into a habit of payment, they become very good clients. Consistency, tact and proven methods are the key elements to your success and stress reduction.
Christopher Mangan is the President of CJM Billing Solution, Inc. and the author of the Top 10 Billing Secrets.
The Mindset of Non-Payers
Some people would rather spend $50 trying to avoid paying $100. They play games, procrastinate, and sometimes refuse to pay at all. Why is that? It’s the way they are hard wired. But consider this, just as good marketing causes people to buy a product, the way you “market” and request payment (bill and collect money) causes customers to pay. You are selling people on paying their bill and your process determines the outcome. It’s vital that business owners understand this. Clients who are hard wired to procrastinate respond both consciously and subconsciously to “the way you bill and collect money”. You can command payment and respect while enjoying a good relationship with clients. Even with that, there are still some problematic customers who drag their feet. We can blame the customer or learn how to change and train them to pay on time. It’s time to train the non-payers to get on board.
The truth is, most of the customers who don’t’ pay have the money, but they don’t want to give it up. These same people have the newest phone the nicest clothes and a sweet car while they owe you money. It’s not their ability to pay but their desire. Your ability to create a sense of urgency with these clients will set you apart from other companies and even your competition.
Again, your capacity to take control of even the most difficult customers will make them pay you while they make others wait. Building trust and credibility from your first meeting through the business relationship will continue to help you get paid and sell to every client. Proper Communication and Consistency are key to getting paid. What does that mean exactly? When you practice great billing and collection strategies, customers respect you and you are perceived as a great business man or woman. Perception is part of your brand and should be taken seriously.
Christopher Mangan is the President of CJM Billing Solution, Inc. and the author of the Top 10 Billing Secrets.
Business and True Motivation
It’s no mystery why we venture to go into business for ourselves… We want to make customers happy. Yea right! Let’s be honest; we are in business to be successful and make money. Income is the number one motivation for business ownership and if we happen to offer a good product or service, our chances for success increase exponentially.
It’s safe to say that getting paid is one of the most exciting aspects of owning a business and we work hard to make the most of our bottom line and keep profits flowing. If this is true, why do we allow a small percentage of customers to play games when it comes to paying? Why are some clients so difficult?
For one, they usually get away with it. Some customers are so good at playing games that even the most experienced business owners get worn down from chasing money. Difficult people challenge our continued efforts to get paid and the confrontation can be extremely frustrating. Non-paying clients exist in virtually every business and they are skilled at the art of not paying and why not? The money is in their pocket and all you’ve got is the stress of trying to collect.
The good news is that every non-paying customer can be brought into a habit of payment. Moreover, you can play their game and win. Game on!
Once you know your opponent you can implement strategies to overcome the obstacles that delay payment. Great strategies can stop professional debtors even when they try to adapt and continue their charade. There is always a way through their apathy and once you learn the tricks, it makes for a better more enjoyable business now and all future business as well.
Now that you have acknowledged that there are some ongoing challenges, let’s look at some solutions.
The first thing you must do is look at your current process. Are there weaknesses that allow customers to take advantage? It’s so important that you take some time to examine your own process.
Take some time to analyze the following:
- Your procedures from the very first meeting with a potential client
- Your documents including invoices, payment reminders and past due notices
- Your methods of payments and the ease of making payments to you
- Your collection methods
After you review your system, take some time to evaluate some individual cases (Prior non-payers) and investigate what happened to determine why they did not pay. While each case can be significantly different, many underlining issues can be traced to one or more areas that customers use to exploit your billing and collection techniques. Obviously, these areas, once identified must be corrected immediately.
Your company may be the type of business where you are forced to wait for payment. In other words, the client is waiting to get paid so they have to make you wait. Some clients know they have you over a barrel and abuse the system. They make you wait far beyond the reasonable time and earn interest on your money. They are intentionally hamstringing you for payment. This challenge is created by habit of historical process. For example, you don’t want to push too hard for fear of losing the client, so they take advantage pushing the envelope a little further each time.
You may be under the assumption there’s nothing you can do about it because that’s how it’s been for years. Believe it or not, you can set yourself up so you are not abused, but why do so many continue to follow this frustrating pattern? This may have plagued you for years and you have thought of everything. Outside advice may be your biggest opportunity to finally change this. There are two choices, do something about or allow it to continue. The documents you use and your approach and strategies determine the speed in which you get paid.
Recently we worked with a company with a very high deficiency in their accounts receivable. After investigating the reason for this default rate, we redesigned the invoices, by changing the statement “Due upon Receipt” to include a specific date such as “Payment of $1,370.00 Due on June 2nd.” We also purchased a box of bright yellow return envelopes to mail out with the invoice. Then we changed the format of the invoice to look more like a payment reminder than an invoice. Research has shown that people respond better to a letter form than an invoice. It’s more personal. Changing the invoice caused his default receivables to decrease exponentially. Then we looked at his process from first meeting of each client. We implemented ways that improved contact to the customer, created incentives for faster payments and payments options that made it easier to pay their bill. This caused another increase in revenue.
Finally, getting paid does not have to be frustrating but many choose to believe they can do nothing about it and they keep making the same mistakes expecting different results. Why do we allow some customers to dictate when and how they will pay? It’s simple. We need to train them to pay on time.
Christopher Mangan is the President of CJM Billing Solution, Inc. and the author of the Top 10 Billing Secrets.
Better Billing and Faster Payments
Waiting for payment and chasing customers is a hassle. In most cases, the issue can be the way you are approaching the customer. Some business owners reject this notion and continue to lose money and clients. The sooner you look inward the faster you can stop chasing money continually. This is such a common phenomenon and business owners who listen to this advice are the most successful.
Every customer makes a conscience decision about how, when and if they will pay you. Your process has such a great influence and determines their decision and your income. Will they pay you or buy the newest gadget or pair of shoes? These are real thoughts in the consumer’s mind.
There are effective ways to generate the immediate dollar using long term methods that make payment priority. Problem is many businesses offer too much leverage and it diminishes their rate of payment and percentage of income. Remember this! You influence your customer’s choice to pay you now or later and sometime they don’t pay at all. Most companies are so afraid of losing the customer they are sloppy or timid about their approach to payment. Do things right and you will make the money, keep the customer happy and have a greater degree of success with less effort. For example, some doctors offices bill for a co-pay. Wait, the customer is right there in front of you needed help. Ask for the money NOW. “You have a $20 dollar co-pay”. Customers will pay it on the spot 90% of the time. That means lees administrative costs, faster money and time saved. This is something doctors never do for the other 10%. Hand them a bill right there with a due date, today’s date of service and self addressed return envelope. This would take care of more than half of the 10% who did not pay. These methods along with many more are examples of great pro-active options that many do not utilize.
Since 1989, CJM Billing Solutions, Inc. has produced millions of dollars for fortune 500 companies as well as small businesses. Enjoy greater revenue through efficiency and proven methods. Christopher Mangan is the author of Top 10 Billing Secrets and he has been shown to increase earnings as much as 27% annually and companies are amazed. They had no idea such changes could be made. They spent years doing the same thing over and over and never realized their loss. Don’t you think it’s time to enjoy greater success?
Billing, Collections and Accounts Receivable
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Who is doing your billing, accounts receivables and collections? Is it you, or do you have someone else doing this job? The people making the calls, doing the billing, and managing this part of your business MUST have the right personality. I have seen companies lose customers and revenue because it was not a match. Your billing person can know how to “do it all” but lack real effectiveness when it comes to getting money through the door.
On the other hand, you may have a person who is sincere and would execute the job perfectly, but they just need proper training. Learn to identify who has the talent for this task. Find people with a positive personality and while it’s more common that people with experience in this field are more efficient, you might find someone great with no experience. I remember when I first started in this line of work my supervisor saying “you will never last in this line of work”. I used collection techniques that produced results and quickly became a supervisor and trainer. My strategies became the leading methods used by collectors in that agency. I continued my experience and went on to create a new multi-million dollar collection agency which had great success collecting some of the most difficult accounts.
Since 1989, CJM Billing Solutions, Inc. has produced millions of dollars for fortune 500 companies as well as small businesses. Enjoy greater revenue through efficiency and proven methods. Christopher Mangan is the author of Top 10 Billing Secrets and he has been shown to increase earnings as much as 27% annually and companies are amazed. They had no idea such changes could be made. They spent years doing the same thing over and over and never realized their loss. Don’t you think it’s time to enjoy greater success?
Customers who don’t pay
Why do some customers pay late every month? Most answers can be found in your own billing and collections process. Too many business owners reject the notion that their process could be a problem. While most clients pay on time, there are a select few who play games. These are the people who have the money but choose to ignore their obligation not pay as they drive away in their luxury car. These people have mastered the art of not paying. They avoid your calls, refuse to pay and hamstring you even after you have provided a great product or service.
It’s time to change that. CJM Billing takes these customers head on with methods proven to bring payments in faster. With a series of escalated methods, even the toughest customers cannot resist the urge to pay. The only thing keeping you from realizing your best payment techniques is you. Do you want techniques that give you the upper hand? What are you waiting for? Only 3 out of 10 business owners will take advantage of this great opportunity to improve billing and collections. The other 7 will keep having problems and it’s “business as usual”. Let CJM Billing provide you with great Payment Solutions.
We have worked with small business as well as fortune 500 companies and recently presented a series entitled “Collections, Billing, and Conditioning Students to Stay Current” for New York State Organization of Bursars and Business Associates (NYSOBBA). I am the author of the Top 10 Billing Secrets, and president of CJM Billing Solutions, Inc. Since 1989 I have proven that faster payments support higher revenue. Stop waiting to do something and really do something. Contact CJM Billing where we bring greater revenue to business every day.
Past Due Accounts, Who’s to Blame?
What causes customers to pay? Why do some pay late every month? The answers can be found in your own billing and collections process. Too many business owners reject the notion that their process for billing and collections could be a problem. So often ego gets in the way of success and it’s business as usual. Excuses and blame do nothing to fix the problem and they stifle opportunity for real growth. When we criticize the client or succumb to the idea that it’s the way things work in “my” industry. They stop working on methods to improve the very process that dictates how fast and how often they get paid.
I have even written a book on this very subject called The Top 10 Billing Secrets.
How can business owners know if there is room for improvement? Just like you would go to a good contractor to fix your house, you go to billing consultants to find out what’s wrong with your billing and collections process. It’s that simple but so many great business owners miss it. If you are dealing with challenges that cause you to wait for payment, you can bet others have found a way through those people who play games and make you wait for payment.
Let’s use a simple example such as return envelopes. Some companies still forgo sending return envelopes with the bill or invoice. That’s why you will get paid last. Customers tend to be lackadaisical and don’t want to get their own envelope, fill it out and hope they have the correct address; the fewer the steps the better. They want to place a stamp, insert a check and mail it. You may already use return envelopes, but there are several methods for getting paid that you may not be utilizing. I find it remarkable that some companies who expect timely payments are still not using many of the proven strategies that must be incorporated. Is your invoice set up to promote timely payment? I have seen some bizarre looking invoices that make customers dodge paying. Some clients need just a small reason to not pay.
Another fact that you may already know is the longer a bill goes unpaid, the least likely you are of getting paid. When bills go 30, 60, 90 days past due, your chances of getting paid are greatly reduced. What about businesses that only accept cash? You are losing money. Even when they know they are losing money they don’t seem to want to listen or change and again, it’s business as usual. Are you kidding?
How about the person making collection calls? Is it the right person? Maybe it’s you and you are not the right person for that job. How do you contact customers; phone, mail or text? Some methods are more effective than others.
Why do so many business owners who are great at what they do have a hard time getting paid? They keep doing the same things expecting different results. Is it “business as usual” for you or will you work to improve your process for greater revenue and less frustration for non-paying customers? CJM Billing Solutions, Inc.
Billing And Payments Billing Consultants.
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Getting paid is the second half of the business that must come first!
Since 1989 we have provided in-house billing and collections strategies for small businesses as well as fortune 500 companies. There is a serious need for real solutions to customers who constantly pay late and make you wait for your money.
There are a variety of reasons why some clients string you along for payment and these people need to be trained to pay. How many clients owe you money right now? And what about those you have to chase every month? Chasing people for money can be exhausting and it’s a hassle that needs to be corrected immediately. You can create a habit of payment in all of your customers and get paid faster.
The way you present your operation from the first meeting and throughout the business relationship-which includes billing and collecting payments-greatly determines your rate of success. We implement proven billing and collection methods based on studies that overcome payment problems and help businesses experience greater cash flow.
While there is no “one size fits all” approach to this process, there are many fundamental laws that remain unchanged. For example, the longer an account remains unpaid the less chance you have of getting paid. Percentage of collectability decreases 30 days past due and becomes even more un-collectable at 60 and 90 days and so on. There are also laws that cause customers to pay. The techniques you use to pursue your money and communicate that payment is “due now” are vital. This is the 21st century and you need 21st century methods to get paid. Furthermore, you don’t have to worry about losing clients when your approach is respectable but persistent. Good customers will respect great billing and difficult customers cannot escape the urge to pay.
Too many business owners wait far too long to do get professional help and miss out on a great opportunity to really solve their challenges. Many business owners cannot seem to get out of their own way and become stifled and complacent. Don’t keep guessing why people don’t pay, look internally and find the reason. This dilemma is so common that thousands and tens of millions of dollars are lost each year.
As mentioned in “Top 10 Billing Secrets”, over 25 billion dollars gets referred to collection agencies every year and more gets written off as bad debt. How much of that money was yours? Why do so many business owners refuse to endeavor on upgrading? It’s business as usual.
If you’re one of the few who is going to make the decision to get help and improve, you’re on the right track. You want greater success. You want changes with real results and tangible progress and that’s exactly what CJM Billing Solutions does.
Billing Business As Usual
Most customers pay on time and it’s business as usual. However, a select few are indifferent and make you wait. They have the money but there is no sense of urgency to pay you. Some even string you along for months on end. The faster you solve this problem, the faster you can get paid. Yet countless business owners put up with this aggravation of non-payment for years. They feel stuck because they don’t want to lose clients. The fact is, there are proven strategies to combat this common problem, but it’s business as usual and they continue in their frustration. This problem is more common than you may think. I have worked to solve these everyday challenges with fortune 500 companies as well as small businesses. The real problem is most business owners do virtually nothing to get help and learn the techniques that break the pattern of past due accounts. They continue to lose money and get frustrated by customers who are great at playing games.
Since 1989 CJM Billing Solutions, Inc. has been helping businesses just like yours experience greater cash flow and increased revenue. We work with small businesses and fortune 500 companies to give them the tools needed to stop people from paying late and teach proven methods so frustrated business owners can enjoy greater success. Learn how to deal with past due customers and bring them into a habit of payment. Influence current customers to pay on time and set the tone for new customers to stay current? CJM is the leading consulting firm and we are experts in faster payments and higher revenue. It takes a special kind of person to run a business but it takes experience to bring the money in with little or no hassle. Visit us at CJM Billing Solutions, Inc.or get our quick guide at Top 10 Billing Secrets.
Paying On Time
When customers pay on time, it feels great to be in business. However, when people string you along and they don’t pay, business becomes stressful, difficult and aggravating. Some customers are so good at not paying their bill, they owe hundreds and sometimes thousands of dollars. They love the game of “cat and mouse” with your money. How long are you going to allow this to happen? The answer is up to you. We have been solving this age old problem for over 26 years and we work tirelessly to with many businesses to end the difficult cycle of non-paying clients.
Since 1989 CJM Billing Solutions, Inc has been helping businesses just like yours experience greater cash flow and increased revenue. We work with small businesses and fortune 500 companies to give them the tools needed to stop people from paying late and teach proven methods so frustrated business owners can enjoy greater success. Learn how to deal with past due customers and bring them into a habit of payment. Influence current customers to pay on time and set the tone for new customers to stay current? CJM is the leading consulting firm and we are experts in faster payments and higher revenue. It takes a special kind of person to run a business but it takes experience to bring the money in with little or no hassle. Visit us at CJM Billing Solutions, Inc.or get our quick guide at Top 10 Billing Secrets.
